SAP, Deutsche Telekom, Ionos, and Schwarz Compete for EU Funding to Construct AI Data Center
Germany's SAP, Deutsche Telekom, web hosting company Ionos, and retailer Schwarz are in deep talks to obtain European Union support for the construction of one of the five planned AI gigafactories in Europe, according to a report by Handelsblatt. These AI data centers will be crucial for the EU's bid to reach the United States and China in artificial intelligence capabilities.
EU's $20 Billion Investment
The European Commission has set aside $20 billion of funding for the construction of these AI data centers, which are to promote the development of indigenous AI models in the EU.
But the project is riddled with challenges, among them obtaining enough chips, ideal locations, and guarantees of access to adequate electricity to drive these massive processes.
The Race for the AI Gigafactory
The group, represented by some of Europe's top technology and retail firms, is vying for a spot among the main players in this strategic plan. The firms are drafting bids to construct a world-class facility that would host AI innovation throughout the EU.
Also read: Texas Instruments and NVIDIA Partner on 800V High-Voltage DC Power Systems for AI Data Centers
Government Support
Germany's coalition government, made up of both Chancellor Friedrich Merz's conservatives and the Social Democrats, has had very strong backing for this project, as reported by Reuters.
They aim to have at least one AI gigafactory built within Germany's borders. The AI gigafactory development is an important step towards making sure that Europe builds the infrastructure it needs to keep up with its global competitors in the fast-evolving area of AI technology.
