The European Union has received 76 proposals from companies to build AI gigafactories across 16 member states, according to EU tech chief Henna Virkkunen.

This announcement follows the EU’s allocation of €20 billion (US$23.5 billion) for the construction of four such facilities.

These gigafactories will act as major hubs for AI computing and data storage, each housing around 100,000 AI chips.

Proposals span 60 locations and come from EU and non-EU companies, including tech firms, telecoms, data center operators, and financial investors.

Applicants plan to purchase at least 3 million advanced AI processors, though company names remain undisclosed for confidentiality reasons.

The EU will officially launch the call to establish the gigafactories by the end of the year.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Europe’s AI investment aims to close a widening capability gap

The EU’s €20 billion AI gigafactory initiative responds to a significant competitive disadvantage in AI infrastructure compared to global leaders.

While the US and China have established substantial AI computing capacity, Europe has historically struggled to develop comparable infrastructure, creating dependencies on foreign technology that have concerned European policymakers 1.

The scale of the EU’s ambition is evident in the targets: each gigafactory will house approximately 100,000 AI processors, collectively aiming to triple the EU’s data center capacity within 5-7 years 2.

This initiative is part of a broader €200 billion InvestAI strategy, with €150 billion expected from private investors, indicating the EU’s shift toward public-private partnerships to accelerate technological development 3.

The overwhelming response—76 submissions across 16 member states—suggests European companies recognize the strategic importance of domestic AI infrastructure development after years of falling behind.

2️⃣ AI computing capacity directly impacts economic competitiveness

The rush to build AI gigafactories reflects how computational infrastructure has become a critical economic differentiator between nations.