European Union Opens Competition for Seven AI Gigafactories

The European Union has opened a competition to build up to seven artificial intelligence gigafactories. European and national budgets are expected to provide as much as EUR 10 billion and attract at least EUR 20 billion in private capital. The facilities are to combine advanced processors, software, high-speed networks and energy-efficient data centres. Access is intended for start-ups, scale-ups, industry, researchers and public authorities. The call divides projects into two sizes. Large centres are expected to contain at least 100,000 advanced processors, while smaller facilities may contain up to 75,000. Eighteen countries, including Czechia, have expressed interest. Bids may be submitted until 12 November 2026, with decisions expected in early 2027. Selected facilities are to start operating no later than 18 months after contracts are signed, although full deployment of the infrastructure will take longer. Commission Executive Vice-President Henna Virkkunen described access to computing power on this scale as a “strategic necessity for Europe”. The political aim is clear: European companies should not remain entirely dependent on infrastructure provided by US companies when developing the largest models. Buildings alone, however, will not create sovereignty. The decisive factors will be access to processors, electricity, specialists, data and prices that remain competitive over time. The tender conditions seek to limit dependence on a single supplier. This is aimed mainly at Nvidia's current dominance, as its processors and software environment underpin most large computing clusters. At the same time, the Commission has signed statements of cooperation with AMD, Nvidia and Qualcomm to help consortia secure the necessary equipment. European policy is therefore pursuing greater autonomy while acknowledging that the projects cannot currently be built without US manufacturers. The business model will be crucial for private investors. A gigafactory needs a sufficiently high utilisation rate, otherwise it will be burdened by expensive equipment that becomes obsolete quickly. Public support should therefore not cover construction alone. It must also establish transparent access rules, computing prices and a division of capacity between research, small businesses and large customers. Without such rules, the biggest buyers may crowd out the smaller firms the programme is intended to support. Czechia may participate as the host of a smaller centre or as a member of a cross-border consortium. Participation will matter to domestic companies only if it provides predictable access to capacity, not merely a symbolic share in the project. The government and applicants must therefore demonstrate the source of electricity, grid connection, water management, data security and a realistic utilisation plan in advance. Otherwise, the technology investment may become costly infrastructure without sufficient demand.

European Union Opens Competition for Seven AI Gigafactories

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