The European Union is launching a call for tenders to fund up to seven AI Gigafactories as part of a strategy to achieve tech sovereignty by training AI and building European-specific AI infrastructure, including processors, software, cloud stacks, connectivity, and energy-efficient data centers.

The €30 billion funding plan blends €10 billion in public money with €20 billion in private investment, with public financing capped at about 35% and overseen by EuroHPC JU.

Successful bidders are expected to be operational within 18 months of signing contracts.

Technical concerns include potential interoperability and workload-portability challenges due to reliance on vendor-specific interconnects (NVIDIA NVLink/NVSwitch, AMD Infinity Fabric), which could limit cross-facility flexibility.

There are significant challenges cited, including budget uncertainty, environmental compliance, and securing sustained private participation across diverse member states.

Officials note that the bidding information is subject to updates as the process progresses.

Local opposition centers on environmental impact and water use of large data centers, prompting bidders to demonstrate sustainability and energy-efficiency measures.

Concerns about energy and water demand are prompting bidders to document sustainable implementation plans and efficiency measures.

Industry observers question demand and strategic independence, while EU officials argue infrastructure is saturated and that alternatives to U.S. chips could emerge in later phases.

Questions remain about compute demand and foreign dependency, but officials say current infrastructure is saturated and that non-NVIDIA chip providers could be used in future rounds.

The project faces power-mupply challenges: tens of thousands of GPUs require reliable, low-emission baseload energy amid grid decarbonization and procurement hurdles.

Germany’s participation is contested among multiple players after a unified approach stalled; contenders include Deutsche Telekom, Schwarz Digits, Ionos (with Hochtief), Impossible Cloud, Blue Swan, and other regional players.