Czech Government Supports Bid for European AI Gigafactory

The Czech government has approved the country's participation in a European tender for the construction of a so-called AI Gigafactory. The project could provide the Czech Republic with access to powerful computing infrastructure for the development and operation of modern AI systems.

The Ministry of Industry and Trade can now conclude an agreement on joint public procurement with the EuroHPC Joint Undertaking on behalf of the Czech Republic. This will allow Czech private companies to participate in the European tender. The outcome is expected by the end of 2026.

The AI Gigafactory forms part of the European “AI Continent” framework. Its aim is to ensure that Europe has its own capacity for the development, training and operation of advanced artificial intelligence systems. Should a Czech project be selected, a specialised computing infrastructure with tens of thousands of AI accelerators could be established in the Czech Republic.

This infrastructure is intended to provide computing power for the public sector, research institutions, universities, start-ups and technology companies, among others.

“With this decision, we are giving the green light for Czech private companies to participate in the European tender for an AI Gigafactory. This is not yet a final decision that the infrastructure will be located in the Czech Republic, but it is an important step in ensuring that the country has the opportunity to be involved in one of Europe’s most significant investments in artificial intelligence,” said Industry Minister Karel Havlíček.

The project is expected to be financed and implemented by a private investor, who would also bear the financial risks and serve as the owner and operator of the infrastructure. The role of the state would be to support the project and commit to using part of the computing capacity if the bid is successful.

For the first phase, the Czech Republic is expected to contribute CZK 2.5 billion. This amount would be fully matched by an equivalent contribution from the European Union. Payments are expected to be made gradually between 2028 and 2032 and will be linked to the actual computing capacity used.

According to the ministry, this model would provide the Czech Republic with access to modern computing power on significantly more favourable terms than if the state were to procure such capacity independently. No additional burden on the state budget is expected, as existing expenditure on cloud and computing services is intended to be used more efficiently.

If a project located in the Czech Republic is selected, a detailed utilisation plan will be prepared. The capacity could be used for the digitalisation of public administration, the secure processing of sensitive data, scientific research, support for technology companies and start-ups, as well as other strategic purposes.

The project also has an international dimension. The Czech Republic is holding discussions on cooperation with other countries, including Slovakia and Croatia. The aim is to strengthen the country's position as a centre for artificial intelligence in Central and Eastern Europe and make it more attractive for strategic technology investments.

The EuroHPC Joint Undertaking is expected to publish the tender in July 2026. Up to seven consortia are expected to be selected across the European Union to participate in the development of a new generation of European AI infrastructure.