Bavaria and Vienna apply as locations for EU-funded AI gigafactories

The German state of Bavaria and the Austrian capital Vienna have applied to the EU Commission to set up European gigafactories for artificial intelligence (AI). The EU wants to fund these AI gigafactories with up to 20 billion euros, with the private sector co-financing almost two thirds of these data centers. Accordingly, both Bavaria and Vienna have quickly formed corresponding consortia with companies based there.

The EU plans to catch up with other AI locations in the world, such as the United States or China, by subsidizing new AI gigafactories in Europe. To this end, a new European fund with a volume of 20 billion euros is available to finance the construction of four or five AI gigafactories, which are to be built from 2026. These data centers will each be equipped with around 100,000 AI chips of the latest generation, around four times more than in current AI factories such as the “Jupiter” supercomputer in Jülich.

After the failure of the billion-euro project for a joint AI gigafactory of five German tech companies, there are now various initiatives involving Bavaria and Vienna. Initially, the EU is only expecting expressions of interest, but these will also be evaluated and sorted. An in-depth selection and application process is planned for the fourth quarter of 2025; according to EU plans, the AI gigafactories should start operating in 2028.

Bavaria emphasizes infrastructure for “Blue Swan”

Bavaria already has a name for its AI gigafactory: “Blue Swan”. In the press release, Bavarian Minister-President Markus Söder refers to the state's experience in AI research and with “Blue Lion”, Bavaria's supercomputer with the next Nvidia generation. “The European gigafactory for artificial intelligence 'Blue Swan' should therefore also have a home in Bavaria,” said Söder.

Bavaria's Science Minister Markus Blume added that they “already have numerous letters of intent from future users” at the time of submission. Bavaria also refers to the existing infrastructure and other AI facilities located there. In addition, the Investa Group, a real estate company that “has been developing, building and securing data centers in Europe for over 25 years”, is part of the consortium. It has expertise in the construction of such a gigafactory and its complex energy supply. However, Bavaria is not considered ideal for such large data centers in the industry due to the high price of industrial electricity and structural bottlenecks in the power grid.

Vienna with a sustainable energy concept

In Vienna, the application for an AI Gigafactory emphasizes an “environmentally and climate-friendly sustainability concept”, a “socially just form of technology use” and Vienna's “hub function within Europe”. In addition, “Vienna enjoys an excellent reputation worldwide for its efficient infrastructure, high quality of life and innovative strength”, explains Vienna's Mayor Michael Ludwig. Vienna estimates the investment for the AI data center at up to 5 billion euros, with the city following EU guidelines and at least 65 percent being borne by the private sector. Public funds are to be used up to 35 percent.

The Austrian parties involved also refer to the energy concept developed for the AI Gigafactory together with the local power supply company “Wien Energie”. The waste heat from the data center's servers is to be “fed directly into the existing district heating network and used to heat Viennese households”. According to Deputy Mayor Bettina Emmerling, this shows “how digitalization and decarbonization go hand in hand”.

(fds)