EU slammed over multi-billion AI infrastructure splurge plan

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Brussels is set to announce plans to build massive computing hubs while critics stress there is almost no domestic artificial intelligence industry to use them

The EU’s plan to spend over €20 billion ($23.5 billion) on AI gigafactories has drawn sharp criticism ahead of its formal launch as lawmakers and experts question whether there is any real demand for the facilities.

European Commission President Ursula von der Leyen first outlined the plan in February 2025 as the EU’s answer to large-scale US computing projects. It involves building four or five mega facilities with a formal call for proposals set for this spring.

However, the project has been met with pushback from lawmakers. “Nobody could explain to me what is the business case they are planning with these gigafactories,” German Greens MEP Sergey Lagodinsky has said.

“I talked to some who are saying: ‘we just need more compute in Europe.’ But then, when I ask them, ‘what for?’ They say ‘it doesn’t matter, we just need more compute.’” Lagodinsky was quoted as saying by Politico.

It is also unclear who the facilities would be used by, according to Nicoleta Kyosovska, a research assistant at a Brussels-based think tank. She described the planned datacenters as “cathedrals in the desert,” noting that Europe has only one AI company capable of using such infrastructure – the French startup Mistral, which is already building its own data centers.

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