But will a patchwork of national ambitions and private interests help Europe become a true global player — or simply dilute its chances in the tech race?
AI gigafactories: Europe’s race for digital sovereignty or just a Silicon Valley mirage?
EU’s big bet on AI
In February 2025, European Commission President Ursula von der Leyen revealed an ambitious plan: €20 billion to build a network of AI training centers powered by advanced semiconductors. These would serve as Europe’s answer to massive U.S. projects like OpenAI’s “Stargate”, valued at €500 billion.
Even though the American project has already scaled back some of its ambitions, the EU’s initiative is gaining traction. According to Commissioner for Technology Henna Virkkunen, 76 consortia from 16 EU Member States have expressed interest. By the end of the year, the Commission plans to launch a formal call for proposals, ultimately funding up to five projects.
The challenge? Whether this highly political and fragmented selection process can truly identify Europe’s AI leaders — or if it will turn into yet another battleground of national lobbying and industrial interests.
Germany: ambition meets chaos
Germany pledged to host at least one AI gigafactory. In practice, however, the picture looks messy. After a failed attempt to unite multiple companies under one vision, Germany now has at least six competing proposals — often rivaling each other.
- Deutsche Telekom, together with Nvidia, is pushing a flagship project.
- Ionos, a partner of 1&1, is working with construction giant Hochtief.
- Retail titan Schwarz Group has thrown its hat in the ring.
- Bavaria is negotiating with developer Investa.
- And surprisingly, tiny Berlin startup Lyceum, with just 11 employees, wants to build a center in Denmark, lured by cheaper energy.
This patchwork highlights the lack of a unified national strategy — something that could ironically hurt Germany’s chances of winning EU support, especially if the EU prioritizes cross-border cooperation over fragmented national efforts.
Spain shows a smarter way
In contrast, Spain has become a role model in coordination. Madrid managed to bring fierce rivals like Telefónica and MasOrange together at the same table — alongside Nvidia and other tech partners. The project is set to be based in Catalonia, home to an established supercomputing research center.
Other countries are following similar paths:
- Czechia and Austria are working with national telecom operators.
- Finland has teamed up with Nokia, planning to build on the existing LUMI supercomputer.
What makes these projects stand out is their focus on collaboration, state involvement, and complementing existing infrastructure — all factors that boost their credibility in the Commission’s eyes.
Baltic and Black Sea ambitions
Regional cooperation projects are also making headlines. Poland, Estonia, Latvia, and Lithuania have joined forces to launch “Baltic AI”, a cross-border investment that would likely be located in Poland. While details remain under wraps, the multinational setup itself could win points with the Commission, which has long promoted regional integration.
Meanwhile, Romania’s “Black Sea AI” aims to connect not only with domestic resources but also with Moldova, Ukraine, and Turkey. Its geopolitical angle — linking digital development with Ukraine’s reconstruction and Black Sea regional resilience — fits neatly into the EU’s broader strategy of extending digital influence eastward.
Do gigafactories equal digital independence?
The EU’s vision of five AI hubs powered by 100,000+ chips sounds like a leap toward sovereignty. But there are reasons to be cautious:
- Dependence on Nvidia: With Nvidia supplying most of the critical components, Europe’s independence remains limited. Efforts like Silicon Saxony aim to source chips locally, but Europe’s semiconductor industry still lags far behind the U.S. and Asia.
- Infrastructure ≠ Competitiveness: Hardware alone won’t make Europe a leader. Without strong investment in training, open data, interoperability standards, and ethical frameworks, these centers risk becoming little more than expensive monuments.
Winners, losers, and the risk of fragmentation
The selection process raises pressing questions about fairness and transparency. Will the Commission truly back the most advanced projects, or bow to pressure from the EU’s biggest states?
There’s also the danger of digital inequality: if only a handful of countries host these gigafactories, others could be left behind in Europe’s digital transformation. To avoid this, the EU will need to ensure redistribution of skills and resources — not just hardware.
The bigger picture: Europe at a crossroads
The AI gigafactory debate is about more than just infrastructure. It’s about Europe’s civilizational choice:
- Does the EU want to remain just a user of U.S. and Chinese AI models, or build its own?
- Should Europe bet on an open and collaborative AI ecosystem, or simply try to copy Silicon Valley’s approach?
For now, the questions outweigh the answers. But one thing is certain: the AI race isn’t slowing down. Unless the EU turns big promises into a coherent, inclusive, and technically sound strategy, Europe’s dream of digital sovereignty may remain just a slogan.
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