The European Union is making a determined push into the global artificial intelligence race, formally launching its AI Continent Action Plan. Central to this strategy is a substantial investment in building dedicated, large-scale computing infrastructure. The European Commission’s plan includes establishing up to five “AI gigafactories,” aiming to provide the sheer processing power needed to train sophisticated AI models domestically and close the capability gap with the United States and China.
The infrastructure investment is positioned as a key element in the EU’s effort to accelerate AI development and adoption, areas where it has trailed competitors, particularly following the release of OpenAI’s ChatGPT in 2022.
Building Europe’s AI Engine
The plan details a two-pronged approach to compute infrastructure. Firstly, it involves upgrading existing European High-Performance Computing (EuroHPC) Joint Undertaking supercomputers and building new AI-focused systems to create a network of at least 13 “AI Factories.” Sites for these facilities, intended to serve startups, researchers, and established industries, have already been announced across the continent, including initial selections and further locations in Germany, France, Italy, Spain, and Poland, among others.
Secondly, the EU plans the more ambitious creation of up to five entirely new “AI gigafactories.” These centers represent a much larger scale, envisioned as unique public-private partnerships housing massive computing power and associated data centers. The Commission’s communication described the concept as being akin to a CERN for AI, emphasizing an open, collaborative environment. According to a Wall Street Journal report, these facilities could eventually incorporate roughly 100,000 of the latest AI chips, around four times more than the number installed in AI factories being set up right now, highlighting the intended scale for training extremely complex foundational models within Europe.
Funding and Facilitating the Build-Out
Realizing this hardware ambition requires substantial financial backing and streamlined processes. The EU is counting on its InvestAI initiative, launched in February 2025, which seeks to mobilize a total of €200 billion for AI investment over five years (combining €50 billion public funds with a €150 billion private sector target).
A specific €20 billion portion of the public funding is earmarked to help establish the AI gigafactories, as detailed in the Commission’s plan. Recognizing construction hurdles, the Commission also proposed a “Cloud and AI Development Act,” opening a public consultation until June 4, 2025. This act aims to tackle data center permitting bottlenecks by potentially fast-tracking sustainable projects. The EuroHPC Joint Undertaking also launched a specific Call for Interest for Gigafactories alongside the Action Plan announcement.
The infrastructure investment anchors a wider strategy outlined in the AI Continent Action Plan. Key complementary elements include improving data access via a forthcoming “Data Union Strategy” and specialized “data labs.” Another key component is driving AI adoption within European industries. With only 13.5% of EU companies currently using AI, the “Apply AI Strategy” (also under public consultation until June 4, 2025) aims to integrate the technology into strategic areas like healthcare and public services, utilizing the new AI factories and existing European Digital Innovation Hubs (EDIHs). Attracting and developing talent through recruitment initiatives and specialized training programs is another core pillar.
Balancing Innovation and Regulation
This push for development occurs alongside the implementation of the EU’s AI Act, the risk-based regulatory framework which entered into force on August 1, 2024. The Commission plans an “AI Act Service Desk” and is facilitating codes of practice to help businesses navigate these rules, aiming to balance innovation stimulus with governance. The success of the gigafactory plan will likely hinge on securing the targeted private investment and navigating the complexities of large-scale infrastructure projects across member states.
