EU aims for seven AI gigafactories with €10 billion plan in race with U.S., China

The European Union is investing €10 billion to establish seven new AI gigafactories to boost its computing infrastructure. The project aims to attract additional private investment and close the technological gap with the U.S. and China.
Why it matters
This initiative represents a major strategic push for digital sovereignty and industrial competitiveness in the global AI race.
The European Union will fund seven artificial intelligence gigafactories across the bloc with €10 billion ($11.5 billion), the European Commission said on Thursday (July 30, 2026), as the EU steps up efforts to close the technology gap with the U.S. and China.
The Commission said it aims to attract at least €20 billion in private investments for the projects. The total was increased from five planned gigafactories to seven following strong interest from EU countries.
The facilities will combine advanced AI processors, software, cloud technology, high-speed connectivity and data centres. They will come on top of the existing 19 AI factories in various EU countries.
“Access to the raw scale of computing power within AI Gigafactories is a strategic necessity for Europe as AI development accelerates,” EU tech chief Henna Virkkunen said in a statement.
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