The European Union has started a tender process to support as many as seven AI Gigafactories focused on developing AI systems, advancing its push for technological self-reliance.

Drawn from Tesla's large battery plants for electric vehicles, the Gigafactory model is being adapted by the EU to manufacture sophisticated AI processors, software platforms, cloud systems, fast connectivity solutions, and sustainable data centers.

Building on its current 19 AI Factories, the plan seeks to create robust domestic AI infrastructure, which commissioner Henna Virkkunen described on Thursday (30 July) as essential for technological sovereignty.

Brussels has committed 10 billion euros in support, with 4 billion euros anticipated from the upcoming multi-year budget and matched by at least 20 billion euros from private EU sources to launch the sites.

This effort could become one of the largest public-private partnerships in the European Union, a commission official noted to reporters on Thursday.

The facilities based in the EU will comply with all relevant regulations, beginning with the AI Act and extending to safeguards for freedoms and user protections, the official added.

The project also targets reduced EU dependence on foreign firms for chips and cloud services.

Announced in February 2025 during the AI Action Summit in Paris, construction is slated to begin in 2027.

These privately operated sites form the core of the AI Continent Action Plan, intended to position the EU as a worldwide AI leader while easing progress in areas such as healthcare, security, defence, transport, energy, and robotics.

Although facing calls to advance its AI agenda, experts worry the approach may be hasty and allow private operators undue flexibility during development.

The tender includes many elements, and while it addresses energy efficiency, networking, and supply chain strength, some criteria remain deliberately broad, noted Maria Nowicka, Policy Researcher at Interface, a tech thinktank.

This approach creates a genuine chance that separate AI gigafactories will follow individual goals instead of aligning with one unified EU strategy, she told EUobserver.