The European Commission has opened applications for companies and investors to construct a new generation of AI data centres across the EU, a key initiative to bolster the continent's tech infrastructure. This program invites bids for up to seven "AI Gigafactories," supported by €10bn in public funding and an anticipated €20bn in total investment. This initiative aims to reduce Europe's reliance on AI infrastructure from the US and Asia.

Two project types are available: four smaller facilities, each requiring at least 75,000 AI chips, can receive up to €500 million in public funding. Three larger gigafactories, needing at least 100,000 chips, are eligible for up to €1 billion each. Construction is slated to begin in early 2027, with phased rollouts due to ongoing budget approvals, as only €2 billion of the public funding is currently secured.

The EU has also signed letters of intent with US chipmakers Nvidia, AMD, and Qualcomm to ensure access to necessary hardware for successful bidders, addressing earlier uncertainties about financing and component sourcing.