EU lays out $11.4 billion for 7 AI gigafactories as it aims to catch up with US and China

Advertisement

Advertise with us

BRUSSELS (AP) — The European Union is offering 10 billion euros ($11.4 billion) in funding for firms to erect seven AI gigafactories as it seeks to close the AI gap with U.S. and China, the 27-nation bloc's executive said on Thursday.

Read this article for free:


or

Already have an account? Log in here »

To continue reading, please subscribe:

Subscribe and receive a limited-edition Free Press branded hat or tote.

Digital Subscription

One year of digital access for only $205*

  • Enjoy unlimited reading on winnipegfreepress.com
  • Read the E-Edition, our digital replica newspaper
  • Access News Break, our award-winning app
  • Play interactive puzzles

*First annual payment billed as $205.00 + GST for one year. This annual subscription will automatically renew at $233.00 + GST every 52 weeks (10% off the regular annual price of $259.35). Offer available to new and qualified returning subscribers only. Cancel any time.

To continue reading, please subscribe:

Add Free Press access to your Brandon Sun subscription for only an additional

$1 for the first 4 weeks*

  • Enjoy unlimited reading on winnipegfreepress.com
  • Read the E-Edition, our digital replica newspaper
  • Access News Break, our award-winning app
  • Play interactive puzzles
Start now

*Your next Brandon Sun subscription payment will increase by $1.00 and you will be charged $17.95 plus GST for four weeks. After four weeks, your payment will increase to $24.95 plus GST every four weeks.

BRUSSELS (AP) — The European Union is offering 10 billion euros ($11.4 billion) in funding for firms to erect seven AI gigafactories as it seeks to close the AI gap with U.S. and China, the 27-nation bloc’s executive said on Thursday.

The European Commission said it would like the public financing to draw an additional 20 billion euros ($22.8 billion) in private investment.

“Access to the raw scale of computing power within AI gigafactories is a strategic necessity for Europe as AI development accelerates,” said Henna Virkkunen, the Commission executive vice president overseeing tech sovereignty.

FILE -A data centre is pictured in Frankfurt, Germany, Friday, Aug. 22, 2025. (AP Photo/Michael Probst, File)
FILE -A data centre is pictured in Frankfurt, Germany, Friday, Aug. 22, 2025. (AP Photo/Michael Probst, File)

The efforts by Brussels to establish “ tech sovereignty ” have gained urgency as leaders worry about dependence on technologies from foreign providers, which they say could be “weaponized” against Europeans. U.S. President Donald Trump has railed against the EU over its tech regulations and China has limited the supply of minerals critical to the sector.

Firms can now bid for contracts to build gigafactories that are planned to have at least 100,000 cutting-edge AI chips, making them roughly four times more powerful than the data centers currently running in the EU.

The EU’s current computing power — delivered by a network of 19 AI data centers from Finland to Spain — will more than double when these seven gigafactories come online.

Europe lags far behind the U.S. and China in crucial sectors for the development of AI, according to a 2025 assessment by the U.S. Federal Reserve. China has an enormous electrical power capacity for data centers while the U.S. bags the lion’s share of private AI investment.

Europe doesn’t manufacture many of the millions of components needed for data centers and electricity in the EU can cost double or triple what it does in the U.S. and China, according to a Commission report presented to European Parliament in June.

“European businesses and public authorities will continue to rely on US AI providers to the detriment of European service providers struggling to work at the frontier,” said the report, which listed the bloc’s top five cloud service providers as all American. “Dependence on hyperscale cloud and AI computing service providers, particularly for highly critical use cases, will continue to expose data to third-country access and carry risks to service continuity, endangering operational autonomy.”

France’s Mistral now runs the one of the largest AI data center in the EU so far at its campus in Paris. Mistral makes the Le Chat chatbot but it hasn’t kept pace with American AI companies like OpenAI, maker of ChatGPT, and Chinese rivals like DeepSeek.

While political leaders like French President Emmanuel Macron have raised the alarm about Europe lacking homegrown AI companies, deep anxieties run rife across the continent about the economic disruption and privacy implications of the nascent technology.

The Commission said AI products developed with the growing network of data centers will “follow EU standards on data protection, safety, security and ethics,” perhaps referring to the bloc’s Digital Services Act and its Digital Market Act.

In June, 40 mayors around the world signed a pact to curtail the negative impact of the construction of AI data centers on the natural resources, energy prices or climate targets of cities from Phoenix to Melbourne.

Report Error Submit a Tip

More Stories

Volunteer pop-up library axed from Manitoba Youth Centre

Matthew Frank 4 minute read Preview

Volunteer pop-up library axed from Manitoba Youth Centre

Matthew Frank 4 minute read 2:01 AM CDT

Manitoba Corrections has cancelled a pop-up library program at the Manitoba Youth Centre, leaving inmates without librarian services and fewer options to borrow certain books.

The Prison Libraries Committee, part of the non-profit Manitoba Library Association, operated and funded the volunteer program since 2024 before it was shut down by the province last month. The group previously partnered with the province to offer the service because the facility has no dedicated library of its own.

“It is concerning that community members who are incarcerated, especially youth, are losing out on meaningful programming, access to information and rehabilitation efforts, which are offered at no cost to (Manitoba) Corrections. We urge Manitoba Justice to promote more library services and programming, not less,” said a Sept. 24 letter from the non-profit addressed to the justice minister.

Ashley Huot, chair of the Prison Libraries Committee, said she was puzzled when she received an email last month from Manitoba Corrections stating that the pop-up library was no longer needed.

Read
2:01 AM CDT

Gordon Bell rings in a century

Maggie Macintosh 13 minute read Preview

Gordon Bell rings in a century

Maggie Macintosh 13 minute read Updated: Yesterday at 8:06 PM CDT

Mischka Valencia had gotten used to the hum of heavy machinery at Gordon Bell High School.

“Ever since I’ve been here, it’s all been under construction,” the Grade 12 student said, standing on the sidelines of the brightly painted revamped outdoor basketball court. “I had no idea this was a court.”

The Filipina teenager landed in Winnipeg several months after the inner-city campus had transformed into a construction site.

It was the fall of 2023 and Mischka’s priorities were fitting in, befriending classmates and learning a third language via first-period French.

Read
Updated: Yesterday at 8:06 PM CDT

Nearly four in 10 Manitobans hope Canada restarts trade talks after U.S. midterm elections, poll reveals

Gabrielle Piché 4 minute read Preview

Nearly four in 10 Manitobans hope Canada restarts trade talks after U.S. midterm elections, poll reveals

Gabrielle Piché 4 minute read Yesterday at 7:00 AM CDT

Disorganized — that’s what Marcus Langlois calls recent United States tariffs.

He expects suppliers’ prices to increase — on mugs, pens, hoodies — for his employer, Dreamcatcher Promotions, if the United States–Canada trade war persists.

Still, he’s not pining for a quick trade deal.

“I think it should wait,” said Langlois, Dreamcatcher Promotions’ vice-president. “Let’s hope that it’s later on with proper negotiations happening.”

Read
Yesterday at 7:00 AM CDT

May be whiff of truth to ex’s odour ardour

Maureen Scurfield 5 minute read 2:01 AM CDT

DEAR MISS LONELYHEARTS: I ran into an old boyfriend I used to curl on a team with, and we went for drinks. We’ve been almost eight years apart, and I couldn’t remember why we broke up, as we always had such a great time together.

It wasn’t until the second date — this time on a weekend — that it came back to me, with a jolt. Pee-yew! I remembered he doesn’t use deodorant on weekends. Why? He enjoys his own body odour. I recalled that a bit too late, and it was just as awful as ever! I went home early.

Tonight, he called and I refused him another date. I said, “Think back. You remember why we broke up?” Then he said, “Oh yeah, you hated my no-deodorant weekend policy. Well, guess what? Some women don’t mind!” I said I really doubted that, and that ended the conversation. Miss L., wouldn’t any women find stinky underarms offensive?

— Sensitive Nose, Fort Richmond

Free Press staff 2 minute read 2:01 AM CDT

Advance voting for civic and school board elections begins next week.

Voters can cast early ballots for the Oct. 28 election in certain locations from Monday through Oct. 23.

Eligible voters can use their address to search for a convenient location.

Early votes can be cast at the council building at city hall (510 Main St.) every day, except weekends and Thanksgiving, from Monday to Oct. 23.

A spiritual vision will help anchor a health civic outlook

John Longhurst 5 minute read 2:01 AM CDT

We have an election coming up. With that in mind, the Free Press asked some of their columnists to write about the challenges ahead and how the city can become better.

For Tom Brodbeck, the main challenge is finances — and how candidates will pay for their many promises for fixing roads, improving public safety and making transit better.

Rebecca Chambers said that the concerns of inner-city residents need to be taken seriously by those who aspire to work at city hall.

Niigaan Sinclair said the most pressing issue in Winnipeg isn’t construction projects, light-rail transit, public safety, taxes or social services. For him, it’s the city’s relationship with Indigenous people.