European Union Launches “AI Gigafactory” Initiative: Five Facilities with 100,000 AI Accelerators Each

Today, the European Commission unveiled its AI Continent Action Plan, establishing a framework to enhance the EU’s artificial intelligence computing infrastructure. The plan centers on developing five “AI Gigafactories,” each housing approximately 100,000 specialized AI accelerator chips, quadrupling the training throughput capacity of current infrastructure projects. The €20 billion commitment from the EU’s InvestAI fund will finance data center construction and semiconductor procurement, supplementing the €10 billion allocated to thirteen smaller AI factories scheduled to become operational by 2026. Site selection remains pending, though Germany’s incoming administration under Chancellor designate Friedrich Merz intends to secure a facility within German territory. The Action Plan addresses data infrastructure through Data Labs tasked with standardizing datasets from research institutions and industry partners.

An upcoming Data Union Strategy will establish protocols for cross-border information sharing, creating a unified market for AI-ready data resources across member states. With only 13.5 percent of EU enterprises currently using AI in production environments, the Commission will implement an “Apply AI” initiative focusing on deployment in strategic sectors. This program will utilize European Digital Innovation Hubs to provide implementation support. For talent development, the plan includes fellowship programs, visa pathways for specialized non-EU professionals, and an AI Skills Academy offering training in generative models and machine learning operations. An AI Act Service Desk will provide technical guidance on regulatory compliance. The AI arms race is currently being fought on the front between the US and China, where AI labs are acquiring more accelerators and outputting better models almost weekly. In the EU, the goal is to have AI development on par with the two superpowers, leading to more competition and advancements.