Europe is making its most ambitious play yet to compete in the global artificial intelligence race, with the European Commission reportedly finalizing a strategic partnership with the continent’s leading financial institutions to build what officials are calling “AI gigafactories.”
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Building Europe’s AI Backbone
According to recent statements, the Commission has signed a Memorandum of Understanding with the European Investment Bank and European Investment Fund that establishes a formal framework for cooperation on these massive computing projects. The agreement essentially creates the financial and administrative plumbing needed to transform Europe into what officials describe as “a leading AI continent.”
Industry analysts suggest this represents Europe’s most concrete response yet to the computing infrastructure dominance of American and Chinese tech giants. The timing is notable—coming as companies like OpenAI, Google, and Anthropic continue to push the boundaries of what’s possible with increasingly massive AI models requiring unprecedented computing power.
Massive Scale, Specific Timelines
The technical vision, reportedly announced back in February, calls for three to five supercomputing clusters strategically positioned across the continent. What makes these facilities different from traditional data centers? Each is planned to house approximately 100,000 specialized AI chips dedicated specifically to training the most advanced AI models.
That scale puts these facilities in rare company globally. While specific technical specifications remain undisclosed according to sources, the chip count alone suggests computing power that could rival some of the world’s most advanced AI research facilities.
Meanwhile, the financial backing appears substantial. Reports indicate the gigafactories will be financed through the InvestAI initiative, which aims to mobilize €200 billion ($209 billion) for AI investment across Europe. Within that larger pool, a dedicated €20 billion ($20.9 billion) fund has been earmarked specifically for the gigafactory projects.
Overwhelming Response from Member States
The level of interest across Europe appears stronger than many analysts anticipated. According to the latest reports, the call for expressions of interest closed on June 20 with 76 applications proposing AI gigafactory sites across 16 different member states.
That’s 60 potential locations vying for just three to five slots—creating what could be intense competition among countries hoping to host these strategic assets. The geographic distribution suggests broad recognition of the economic and technological importance of these facilities.
Decisions on the winning locations are expected later this year, with operations reportedly scheduled to begin in 2028. That timeline, while ambitious for projects of this scale, reflects the urgency European officials apparently feel about catching up in the global AI race.
Banking on AI’s Future
The EIB’s role extends beyond just financing, according to statements from bank president Nadia Calviño. The institution will work with the Commission to assess proposals and provide advisory support to selected gigafactories that specifically request such services.
This suggests a more hands-on approach than traditional infrastructure financing. The EIB appears to be positioning itself not just as a funder but as a strategic partner in ensuring these facilities deliver on their promised potential.
Calviño’s comments, as reported, emphasize that the EIB Group views AI as “a key driver of innovation and productivity across Europe”—language that underscores the economic, not just technological, imperative behind this initiative.
What remains to be seen is whether Europe can translate this ambitious framework into operational reality. The 2028 target for operations leaves a narrow window for what will undoubtedly be complex construction and commissioning processes. But the level of institutional commitment—from the Commission to the EIB to member states—suggests this is more than just another EU policy paper. It appears to be a genuine attempt to build the physical infrastructure needed to compete in what many consider the defining technological race of the coming decade.
