The European High Performance Computing Joint Undertaking (EuroHPC) has unveiled an ambitious €1.5bn plan to establish the first-ever AI Factories across the continent.
This initiative signals a major step forward for Europe in building a thriving ecosystem to train advanced AI models and create innovative AI solutions.
With seven proposals selected for implementation, the European Union is moving closer to fulfilling President Ursula von der Leyen’s vision of establishing AI Factories as central pillars of Europe’s digital transformation.
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, emphasised the significance of the initiative for Europe’s AI landscape.
She said: “Today, we are one step closer to setting up AI Factories. Using European supercomputers, we will enable AI start-ups to innovate and scale up.
“Now, we are ready to lead with the right infrastructure in our ambition for the EU to become the AI continent. We are on track to make the AI factories initiative a reality in the first 100 days of the new European Commission. We expect a second wave of offers on 1 February.”
How AI factories will boost Europe’s AI leadership
Advancing AI capabilities is an urgent priority for Europe, given the intensifying global competition in this transformative technology.
Strengthening AI will not only secure Europe’s leadership but also unlock significant economic, technological, and societal benefits.
AI Factories can boost economic growth by empowering start-ups and SMEs to scale operations, create jobs, and enhance competitiveness in critical sectors.
These factories centralise the essential elements for AI success: massive computing power, abundant data, and skilled talent, providing advanced computing resources to enable businesses to innovate and thrive in the digital economy.
AI Factories foster collaboration among academia, industry, and policymakers, creating an ecosystem for innovation. This approach positions Europe as a leader in developing ethical and sustainable AI solutions to address global challenges.
These hubs provide the infrastructure needed to develop specialised AI models for key sectors such as healthcare, manufacturing, cybersecurity, agriculture, and the green economy. By focusing on strategic industries, Europe can strengthen its global competitiveness in AI-driven technologies.
Strategic locations for collaboration and growth
The AI Factories will be hosted at leading research and technology centres across Europe. The chosen locations include:
- BSC AIF (Barcelona, Spain)
- IT4LIA (Bologna, Italy)
- LUMI AIF (Kajaani, Finland)
- Meluxina-AI (Bissen, Luxembourg)
- MIMER (Linköping, Sweden)
- HammerHAI (Stuttgart, Germany)
- Pharos (Athens, Greece)
Each site will play a crucial role in fostering collaboration among universities, supercomputing centres, industry leaders, and financial institutions.
This distributed network ensures that AI expertise and resources are accessible across Europe, encouraging cooperation and innovation on a continental scale.
For example, Finland’s LUMI AIF and Spain’s BSC AIF will feature experimental platforms designed to test innovative AI models and applications, further driving progress in the field.
A transformative investment in AI infrastructure
The AI Factories initiative represents a transformative €1.5bn investment, supported by both national governments and EU funding.
Half of this amount is financed through the Digital Europe Programme and Horizon Europe, underscoring the EU’s commitment to advancing AI infrastructure and services.
Five of the selected locations will deploy new, state-of-the-art supercomputers optimised for AI, while the remaining sites will benefit from significant upgrades to existing infrastructure.
These investments are expected to more than double EuroHPC’s computing capacity by 2026, positioning Europe as a global leader in AI research and application.
The establishment of Europe’s first AI Factories marks a turning point in the continent’s digital transformation. By bringing together advanced infrastructure, talent, and resources, these hubs promise to revolutionise the development and application of artificial intelligence.
As Europe moves closer to deploying these factories in 2025-2026, the continent is taking a decisive step toward a future where AI drives economic prosperity, societal well-being, and global influence.
This initiative is not just about technology; it is about shaping Europe’s role in a rapidly evolving world.
