The European High Performance Computing Joint Undertaking (EuroHPC) has announced an ambitious €1.5 billion plan to establish the first-ever AI Factories across the continent—a bold initiative that marks a transformative step forward in Europe’s digital and technological future. This groundbreaking project is designed to build a thriving ecosystem that will train advanced AI models and foster the creation of innovative AI solutions, positioning Europe as a global leader in artificial intelligence.
A Vision for Digital Transformation
With seven proposals selected for implementation, the European Union is moving closer to fulfilling President Ursula von der Leyen’s vision of integrating AI Factories as central pillars of Europe’s digital transformation strategy. The Competitiveness Compass and related initiatives reflect a clear intent to drive innovation, reduce dependency on external technologies, and create a more dynamic environment for research and industrial application across member states.
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, underlined the significance of the initiative for Europe’s AI landscape. In her statement, she explained, “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.” Virkkunen also noted that the initiative is on track to be realized in the first 100 days of the new European Commission’s term, with a second wave of offers expected on 1 February, signaling strong momentum behind the project.
How AI Factories Will Boost Europe’s AI Leadership
Advancing AI capabilities is an urgent priority for Europe amid intensifying global competition in this transformative technology. The AI Factories are expected to unlock significant economic, technological, and societal benefits. By centralizing the essential elements for AI success—massive computing power, abundant data, and skilled talent—these hubs will provide advanced computing resources that enable businesses to innovate and thrive in the digital economy.
The initiative is designed not only to boost economic growth by empowering start-ups and SMEs but also to create high-quality jobs and enhance competitiveness across critical sectors. By facilitating the transition from laboratory breakthroughs to industrial-scale applications, AI Factories will help integrate academia, industry, and policy in an ecosystem that nurtures both innovation and ethical, sustainable AI development.
This strategic focus will empower Europe to develop specialized AI models tailored for key sectors such as healthcare, manufacturing, cybersecurity, agriculture, and the green economy. In doing so, the continent can reinforce its position as a leader in AI-driven technologies while addressing global challenges with innovative and responsible solutions.
Strategic Locations for Collaboration and Growth
One of the most exciting aspects of the AI Factories initiative is its distributed network across Europe. The selected sites will be hosted at some of the continent’s leading research and technology centers, ensuring that advanced AI expertise and resources are available across different regions. 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 of these sites will play a crucial role in fostering collaboration among universities, supercomputing centers, industry leaders, and financial institutions. For example, Finland’s LUMI AIF and Spain’s BSC AIF will serve as experimental platforms where innovative AI models and applications can be tested, driving further progress in the field. This geographically diverse network is designed to ensure that no region is left behind, and that Europe as a whole benefits from shared knowledge and expertise.
A Transformative Investment in AI Infrastructure
The €1.5 billion investment represents a transformative commitment to advancing AI infrastructure and services. Half of this amount is financed through the Digital Europe Programme and Horizon Europe, underscoring the European Union’s resolve to maintain and enhance its technological sovereignty.
Five of the selected locations will deploy new, state-of-the-art supercomputers optimized specifically for AI applications, while the remaining sites will receive substantial upgrades to their existing infrastructure. These investments are anticipated to more than double EuroHPC’s computing capacity by 2026, positioning Europe at the forefront of AI research and practical application.
This massive financial commitment is not solely about the acquisition of cutting-edge technology; it is about building an ecosystem that fosters innovation, scales solutions rapidly, and creates a competitive environment that will drive Europe’s economic and technological future. By combining advanced hardware with innovative software solutions and a strong talent base, AI Factories are poised to revolutionize the way businesses and researchers approach artificial intelligence.
Economic and Societal Benefits
The potential benefits of the AI Factories initiative extend far beyond the realm of technology. By providing a centralized platform for innovation, these factories will help stimulate economic growth by enabling start-ups and small to medium-sized enterprises (SMEs) to scale their operations. The enhanced access to high-performance computing resources is expected to reduce barriers to innovation, leading to the creation of new products, services, and business models.
Furthermore, AI Factories will contribute to job creation and skills development, ensuring that Europe’s workforce is prepared for the digital economy of the future. The integration of academia, industry, and policymaking will create a fertile ground for collaboration, driving research and development that can address societal challenges such as healthcare, sustainable agriculture, and climate change.
In a rapidly evolving global landscape, the ability to harness AI effectively is seen as a key determinant of national and regional competitiveness. With AI Factories at its core, Europe aims to secure a leading position in the global race for technological supremacy, all while promoting ethical and sustainable practices in AI development.
Collaboration, Innovation, and a Shared Future
The AI Factories initiative is a testament to the power of collaboration. It brings together diverse stakeholders—from researchers and start-ups to established industry players and government bodies—to create a cohesive ecosystem designed to drive innovation. By aligning efforts across borders and sectors, the European Union is laying the foundation for a future where artificial intelligence not only boosts economic performance but also enhances societal well-being.
This collaborative approach is critical in today’s interconnected world, where challenges are increasingly complex and multifaceted. The distributed nature of the AI Factories ensures that innovation is not confined to one or two hubs, but is a shared endeavor that spans the entire continent. This will promote regional development, reduce disparities in technological access, and ensure that all member states benefit from Europe’s collective advancements in AI.
Looking Ahead
As Europe moves closer to deploying its first AI Factories in 2025-2026, the initiative is poised to be a turning point in the continent’s digital transformation. It represents a decisive step towards achieving President von der Leyen’s vision of an “AI continent,” where cutting-edge technology drives economic prosperity, societal progress, and global influence.
The AI Factories will serve as the backbone for Europe’s AI ecosystem, setting a high standard for technological innovation and providing the infrastructure necessary for next-generation solutions. This initiative is not just about investing in technology; it is about shaping a future where Europe can lead the world in creating ethical, sustainable, and transformative AI solutions.
With this €1.5 billion investment, the European High Performance Computing Joint Undertaking is paving the way for a dynamic and resilient digital economy. The AI Factories will empower businesses, stimulate economic growth, and drive innovation in key sectors, ultimately reinforcing Europe’s position as a global leader in artificial intelligence.
In conclusion, the launch of the AI Factories initiative is a bold, forward-thinking move that encapsulates the European Union’s commitment to digital transformation. It is a multifaceted strategy designed to integrate advanced infrastructure, talent, and resources into a cohesive ecosystem that will propel Europe to new heights in AI research and application. As the continent prepares to usher in this new era of technological innovation, it is clear that the future of artificial intelligence in Europe is bright, promising significant economic, technological, and societal rewards for years to come.