Perhaps you have, over the past year, heard the term “AI Factories” and “AI Giga Factories” and wondered what it actually means.
This week, the European Big Data Value Forum is taking place in Copenhagen, where the topic of AI Giga Factories is also being debated.
At DTU Compute, Professor Sven Karlsson is an expert on AI Giga Factories and is actively involved in the ongoing discussions at the EU level.
We have asked Sven Karlsson to answer three essential questions about AI Giga Factories.
What are AI Giga Factories?
AI Giga Factories are large-scale, highly advanced facilities designed to deliver the enormous computational power required for the next generation of artificial intelligence (AI) research and innovation.
These facilities - massive AI data centres - typically involve investments of several billion euros, with capacities reaching up to 100 megawatts and housing around 100,000 GPUs (advanced AI processors).
AI Giga Factories builds on high-performance computing (HPC) leveraging all the technologies but are also distinctly different.
While traditional HPC facilities have powered scientific simulations and data analysis for decades, AI Giga Factories are specifically architected to meet the demands of modern AI workloads – such as training large language models and generative AI systems – at an unprecedented scale but also efficient use of trained AI models, so called inference.
They combine the best of HPC infrastructure with AI-specialised hardware and software, enabling both fields to advance in tandem. In this way, AI Giga Factories serve as a bridge between classic supercomputing and the future of AI-driven research and innovation.
They are a step beyond the smaller AI Factories, which are already being deployed across Europe to support startups, SMEs, and researchers with AI-optimised supercomputing resources.
Why are AI Giga Factories important for Denmark and the EU?
AI Giga Factories are crucial for maintaining and enhancing Europe’s competitiveness in the global digital economy; to close the gap with AI leaders like the US and China.
For Denmark, these facilities represent an opportunity to put tomorrow’s technology into the hands of innovators today – across academia, industry, and the public sector.
HPC and digital technologies are now essential for all scientific research at institutions like DTU, where computer simulations have replaced physical laboratories.
By participating in the AI Giga Factory initiative, Denmark and the EU can ensure access to world-class computational resources, foster collaborations, and drive innovation. This access is vital for attracting and retaining talent, supporting cutting-edge research, and enabling technology transfer to industry.
It will allow Danish and European researchers and companies to process data securely, comply with European regulations, and reduce dependence on non-EU AI infrastructure.
What is the process in the EU, and how far along is it?
An ambitious programme is proposed to establish AI Giga Factories as part of a broader strategy to position Europe as a global leader in trustworthy and sovereign AI development.
Since their introduction in the European Commission’s AI Innovation Package (July 2024), 19 AI Factories have been launched across 16 EU countries (with 5 more member states involved) and 13 antennas, to cover all EU territory. These AI Factories act as ecosystems combining computing power, data, and talent to build large AI models and foster AI driven innovation.
An additional €20 billion from the InvestAI Facility is expected to fund up to five AI Giga Factories. Each Giga Factory is expected to cost €3–5 billion euros and consume up to 1 gigawatt of power.
76 letters of interest from 60 sites in 16 Member States have been submitted, indicating strong interest and potential expansion. With five Gigafactories expected to be funded, a consolidation of efforts is expected to take place.
