The European Commission has opened bidding to build up to seven AI gigafactories across Europe, a move aimed at sharply expanding the continent's AI computing capacity. The initiative, part of the EU's "AI Continent" strategy, seeks to give startups, companies, research institutions, and government agencies access to the infrastructure needed to train and run large AI models.
What the EU Is Offering
The Commission expects up to €10 billion in EU and national funding to draw at least €20 billion in private investment. That combined package totals around €30 billion. Eighteen member states are taking part, including Germany and France.
To secure hardware access, the Commission has signed letters of intent with AMD, Nvidia, and Qualcomm. These agreements are meant to ensure the gigafactories can get the chips they need, a critical concern given global supply constraints.
Applications are due November 12, 2026. Construction of the first facilities is set to begin in 2027.
The Scale of the Challenge
The numbers tell a stark story. For comparison, major US tech companies alone plan to spend more than $600 billion on data centers this year, and that figure keeps rising. Europe's total package of around €30 billion is roughly 20 times smaller than that single-year US spending figure.
Matthias Bastian, author of the article for The Decoder, framed the disparity plainly. "If all that computing power is actually needed, Europe's investment would be a drop in the bucket," he wrote.
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A Race With Uneven Stakes
The US spending figure of over $600 billion in 2026 reflects a private-sector surge that shows no signs of slowing. Europe's approach leans on public funding and cross-border cooperation, a contrast in strategy as much as scale.
The gigafactories are designed to serve a wide range of users, from small startups to large research bodies. The hope is that shared infrastructure can lower barriers for European AI development.
What Happens Next
The bidding process is now open, with a deadline of November 12, 2026. Construction of the first facilities is set to begin in 2027, assuming applications and funding come through as planned.
The Commission's letters of intent with AMD, Nvidia, and Qualcomm suggest hardware supply is a priority from the start. Whether that will be enough to close the gap with US investment remains an open question.
For now, the EU is betting that €30 billion can build a foundation for AI sovereignty. The US is betting over $600 billion can build a moat.