Leading figures in Germany’s IT sector say that the establishment of an AI gigafactory in the country is unfeasible due to financing constraints, reports the specialized service “Tagesspiegel Background Digitalisierung & KI”.
“Ionos’ chief, Achim Weiß, told the EU Commission’s funding plans that if only four billion euros are available for five gigafactories, the project is doomed” he said. Both Ionos and Deutsche Telekom point to uncertainties surrounding Europe’s co‑financing of large AI data centres, five of which are slated to be built across the continent.
The EU Commission originally set aside 20 billion euros for the five gigafactories in its Digital Strategy. However, internal EU documents-cited by “Tagesspiegel Background”-show that the total budgetary commitment from the EU is capped at a maximum of four billion euros. The remaining amount must be supplied by member states and the European private sector, while the day‑to‑day operation is expected to be financed solely by private investors.
At the 23rd International Cartel Conference in Berlin, Telekom CEO Tim Höttges echoed this warning: “Given these circumstances, we will not build them”. He added that while the Telekom itself sees no need for a gigafactory, Germany and Europe do.