EU Greenlights “AI Gigafactories” in Push for Strategic Compute and Technological Sovereignty

Written by Jeremy Werner

Jeremy is an experienced journalist, skilled communicator, and constant learner with a passion for storytelling and a track record of crafting compelling narratives. He has a diverse background in broadcast journalism, AI, public relations, data science, and social media management.
Posted on 01/20/2026
In News

The EU has approved new rules enabling the creation of large-scale “AI gigafactories,” a strategic infrastructure push designed to expand Europe’s access to high-performance compute and strengthen its position in artificial intelligence and quantum technologies. The Council adopted the amendment recently, updating the regulation governing the European High-Performance Computing Joint Undertaking (EuroHPC JU).

 

The amendment authorizes EuroHPC to fund, develop, and operate AI gigafactories across member states through public-private partnerships involving governments, industry, and research actors. EU officials say the facilities will provide world-class dedicated compute capacity needed to train and deploy advanced AI, while helping European firms compete against counterparts in the United States and Asia.

 

The regulation also includes new provisions aimed at supporting Europe’s start-ups and scale-ups, including safeguards in procurement and access rules intended to prevent major firms from monopolizing compute supply. A parallel quantum technologies pillar has been added to EuroHPC’s mandate, framing both AI and quantum as critical enablers of industrial competitiveness and scientific leadership.

 

“We’ve taken a bold and swift step towards establishing AI gigafactories in Europe,” said Cyprus Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou, adding that securing AI infrastructure is essential for Europe’s resilience, competitiveness, and sovereignty.

 

The measure reflects growing concern among EU policymakers that limited access to advanced compute is constraining AI development. European leaders have increasingly framed compute capacity as a geopolitical resource, comparing it to energy security and semiconductor access.

 

The newly adopted regulation will be published in the Official Journal of the European Union on January 19 and will enter into force the following day.

 

EuroHPC currently oversees Europe’s supercomputing and quantum computing infrastructure, including the EU’s exascale roadmap. A prior amendment in 2024 authorized the creation of smaller “AI factories,” described as innovation ecosystems for research and deployment. The latest expansion toward gigafactories aims to establish industrial-scale systems capable of supporting next-generation models and applications.

 

EU officials argue the initiative marks a critical step toward reducing reliance on foreign cloud and compute providers, while accelerating the bloc’s broader AI innovation agenda.

 

Need Help?

 

If you have questions or concerns about how to navigate the global AI regulatory landscape, don’t hesitate to reach out to BABL AI. Their Audit Experts can offer valuable insight, and ensure you’re informed and compliant.

 

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