Competitive $30 billion strategy by Europe aims to close AI advantage held by U.S. and China
The European Union has unveiled a monumental $30 billion initiative to construct high-capacity AI data centers, marking one of the world's largest publicly funded endeavors in AI. The ambitious project, scheduled to commence in Munich early September, aims to establish a network of data centers capable of supporting millions of AI GPUs.
The EU's AI sector has been hindered by limited access to computing, despite having more AI researchers per capita than the U.S. The initiative seeks to address this limitation and stimulate growth across the region.
The project involves the construction of gigawatt-class AI data centers, with each facility potentially accommodating around 300,000 Blackwell Ultra processors. The scale of these facilities is designed to provide the EU with a substantial boost in AI processing capacity.
As of now, €10 billion, approximately $11.8 billion, has been committed for the establishment of 13 AI data centers. An additional €20 billion has been allocated as initial funding for a network of gigawatt-class AI facilities. Each gigawatt datacenter is projected to cost between €3 and €5 billion.
However, concerns persist regarding the overall scale and long-term sustainability of the project. Power supply is a significant concern, as a gigawatt-class data center demands an enormous amount of power. Upgrades to the grid infrastructure may be necessary to accommodate these power-hungry facilities.
Bertin Martens of Bruegel questions the level of public sector investment and the precise amount of public investment remains unclear. Developing robust business models, thorough planning, and securing interest from private companies are crucial for the profitable operation of these data centers and the creation of world-class AI products.
The initial phase of the project is already underway, with the first AI factory anticipated to become operational in the coming weeks. The establishment of massive AI data centers is intended to position the EU as a global leader in AI technology and drive innovation across the continent.
