EU launches 1.1 billion dollar program to boost AI development across major sectors for digital independence

Introduction of the AI Continent Action Plan

The European Union has announced the launch of a sweeping €11 billion initiative to energize the development and deployment of artificial intelligence across critical sectors as part of its ongoing drive for greater technological sovereignty. The package, known as the AI Continent Action Plan, was introduced in October 2025 and aims to position Europe as a global leader in the artificial intelligence (AI) race[1][2][3].

Key Pillars of the Action Plan

The AI Continent Action Plan revolves around five strategic objectives designed to transform the continent’s digital landscape[1][2][3]:
  • Building Large-Scale AI Data and Computing Infrastructure: Establishment of a network of AI Factories and Gigafactories, capitalizing on Europe’s High-Performance Computing (EuroHPC) resources to nurture domestic talent, support startups, and develop new AI models.
  • Improving Access to Data: Creation of Data Labs to curate and provide high-quality datasets, underpinned by an upcoming EU Data Union Strategy to boost cross-border data flows.
  • Accelerating AI Adoption in Strategic Sectors: Enhanced investment and innovation in sectors such as healthcare, industry, education, and environmental sustainability.
  • Strengthening AI Skills and Talent: Plans for an AI Skills Academy and focused measures to address the talent gap within the European AI ecosystem.
  • Facilitating Effective Regulation: New support measures, including an AI Act Service Desk, to ensure the smooth rollout of the EU’s pioneering AI Act[2][3].

Major Investments and Infrastructure

The European Commission’s plan earmarks billions for public and private investments to fuel both AI Factories and ambitious AI Gigafactories designed to generate powerful, next-generation frontier AI models. A recent call for expressions of interest attracted proposals from 16 member states to host these large-scale facilities, exceeding initial expectations. The plan seeks to mobilize up to €20 billion in investments, with €200 billion targeted for long-term AI development[2]. With 13 AI Factories already operational across countries like Spain, Italy, Germany, and Finland, the EU is bolstering its computing backbone and offering remote access to innovators and research groups throughout the bloc[1][2]. These facilities are expected to provide a foundation for accelerated model training, inference, and deployment.

Regulatory and Societal Considerations

The EU is placing special emphasis on ensuring that AI deployment aligns with European values—by embedding trust, transparency, and human oversight into its technology policies. The AI Continent Action Plan distinguishes itself through a commitment to safety and fundamental rights, pairing robust investments with measures for regulatory compliance and simplification[3]. Open-source projects, however, are not given priority access under the current plan, which instead focuses on supporting startups, SMEs, and EU-funded initiatives[2].

Looking Forward: Europe’s Strategic AI Vision

The plan’s coordinated approach—coupled with future proposals like the Cloud and AI Development Act to triple data center capacity—reflects Europe’s ambition to achieve sovereign control over digital infrastructure and foster a competitive, human-centric AI ecosystem. The launch of forums like the Apply AI Alliance will further support ongoing dialogue between public and private sectors, academia, and civil society, reinforcing the EU’s leadership role in global technology governance[3].

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