Growing concerns are emerging within the technology sector regarding the European Union’s plan for large-scale artificial intelligence data centers.
Executives are questioning whether the strategy will effectively position Europe as a globally competitive force in the digital landscape. Kai Wawrzinek, founder and CEO of cloud provider Impossible Cloud, stated that the “Gigafactory” approach is unlikely to deliver the intended outcome of digital independence and competitiveness. Frank Karlitschek, CEO of Stuttgart-based software firm Nextcloud, expressed concern that the initiative prioritizes infrastructure development ahead of demonstrated demand.
The EU intends to address its position in the global AI race by establishing five data centers distributed across the continent. Each facility is projected to house approximately 100,000 specialized GPU chips, to be constructed and operated by private companies. The EU has pledged 20 billion euros in funding to incentivize these substantial investments. The German federal government has committed, as part of its coalition agreement, to securing at least one of these Gigafactories within its borders.
However, the significant financial package has drawn increased scrutiny. Christian Klein, CEO of SAP, recently stated that the five planned data centers are not the priority. Roland Busch, CEO of Siemens, also questioned the project’s approach, suggesting that building the infrastructure before identifying specific use cases is flawed. He raised concerns about the current capacity to effectively utilize the projected resources.
Wawrzinek echoed these concerns, questioning the potential demand for such computational power: “When investing such large sums in a project, ensuring utilization is crucial. This requires the involvement of established digital players.
Tech expert Stefan Heumann from the Berlin-based think tank Agora Digitale Transformation highlighted the lack of defined applications for the infrastructure. “We are aiming to build and finance the infrastructure without a clear understanding of how it will be utilized” he said, expressing concern that the initiative may miss the mark. Publisist Ansgar Baums presented an even stronger critique, arguing that dictating business cases for such substantial investments to companies demonstrates an overestimation of capabilities.