EU invests €1.5B to create 7 new AI factories across Europe

The European Union is dramatically expanding its artificial intelligence capabilities with a EUR 1.5 billion investment in seven AI Factories across the continent, marking a significant step in its strategy to compete globally in AI development and applications.

Strategic Investment Overview; The European High Performance Computing Joint Undertaking (EuroHPC) has selected seven locations across Europe to establish AI Factories, with funding split between EU programs and national sources.

• The initiative aims to double Europe’s AI computing capacity through a combination of new facilities and upgraded existing infrastructure
• Five locations will receive entirely new AI-optimized supercomputers, while two sites will upgrade or associate with existing systems
• The total investment of EUR 1.5 billion will be funded equally between EU programs and national contributions

Geographic Distribution and Participation; The selected sites span across Europe, involving 15 EU Member States and two EuroHPC participating States in a collaborative network.

• Primary hosting locations include Barcelona, Bologna, Kajaani, Bissen, Linköping, Stuttgart, and Athens
• Multiple countries have joined specific AI Factory initiatives: Portugal, Romania, and Turkiye with BSC AIF; Austria and Slovenia with ITA4LIA; and Czechia, Denmark, Estonia, Norway, and Poland with LUMI AIF
• Spain and Finland will feature special experimental platforms for developing and testing innovative AI models

Technical Infrastructure and Capabilities; The initiative represents a significant expansion of Europe’s AI computing infrastructure.

• Five new AI-optimized supercomputers will be deployed in Finland, Germany, Italy, Luxembourg, and Sweden
• Spain’s MareNostrum 5 system will receive upgrades to serve as an AI Factory
• Greece’s facility will operate in conjunction with the DAEDALUS supercomputer currently being deployed

Implementation Timeline and Focus Areas; The project has a clear deployment schedule and targeted application domains.

• Deployment is planned for 2025-2026
• Additional Member States can submit proposals for new AI Factories until February 2025
• Key focus sectors include healthcare, climate, cybersecurity, and manufacturing

Strategic Implications; This massive investment in AI infrastructure positions Europe to better compete in the global AI race while maintaining its values and technological sovereignty.

• The creation of comprehensive open AI ecosystems around these supercomputing facilities aims to foster innovation and competitiveness
• Multiple participating countries and collaborative arrangements suggest a pan-European approach to AI development
• The initiative aligns with President Ursula von der Leyen’s vision for European AI leadership

Looking Ahead: While this investment represents a significant step forward for European AI capabilities, the success of these AI Factories will ultimately depend on their ability to attract top talent, foster innovation, and translate computational power into practical applications that benefit European industries and citizens.