tech
EU AI Gigafactory Plan Stumbles as Delays Alienate Partners
The EU’s plan for five AI gigafactory data centres is stumbling due to delays and funding gaps, with bidding pushed to July and only two of five centres fundable before 2028. Interest has narrowed from 70 companies to about 10, with SoftBank’s France deal alone dwarfing the entire programme.
TL;DR
- The EU's plan for five AI data centers is delayed, with bidding pushed from May to July.
- Funding clarity only allows for two of the five planned centers to be financed before the next EU budget cycle in 2028.
- Interest from companies has significantly decreased from an initial 70 to about 10 potential bidders.
- Some interested companies are reconsidering bids due to project downsizing and the complex tender process.
- The EU's €4.1 billion in subsidies is modest compared to private sector investments in AI infrastructure.
- Companies like the Schwarz Group are proceeding with their own data center builds, bypassing the EU program.
- Mistral AI's CEO criticized the national focus of the program, advocating for a wider European approach.
- The delays and perceived bureaucratic hurdles echo past EU initiatives like the Chips Act.
- The EU aims for tech sovereignty for security, privacy, and competitiveness, but lacks the necessary infrastructure.