The European Union has unveiled a €20 billion plan to establish AI “gigafactories” equipped with advanced supercomputers to drive next-generation artificial intelligence development. The initiative is aimed at boosting Europe’s competitiveness with the US and China, which currently dominate the global AI race. In 2024, the US developed 40 major AI models, China produced 15, while Europe managed only three — all from France.

The planned gigafactories will house more than 100,000 high-performance AI chips, significantly exceeding the capacity of Europe’s current 13 AI facilities. These centers will focus on breakthrough projects in healthcare, robotics, and scientific research. Concerns have been raised about their environmental impact, particularly energy and water usage.

To address this, the EU intends to power the factories with renewable energy and implement water recycling systems. Between three and five gigafactory sites are planned, each expected to cost between €3–5 billion. Funding will come in part from the European Investment Bank, with additional backing sought from private investors.

Another key component of the plan is to boost domestic production of AI semiconductors. Meanwhile, the European Commission is considering adjustments to the recently approved AI Act. Consumer advocates have expressed concern that early revisions could weaken regulatory protections before the law takes effect in 2027.