EU Takes Control: A Shift from Globalization to Regionalism in Data Centers

The EU is winning the data center race as hyperscalers like Amazon, Microsoft, and Google lose ground. The EU's push for data center sovereignty is driven by concerns over reliance on foreign providers and the need for economic independence. With a focus on domestic production and data security, the EU is ramping up its own data center infrastructure, marking a shift towards regionalism in the post-globalization era.

The European Union (EU) is making significant strides in the global data center race, with initiatives aimed at reducing reliance on foreign providers and enhancing economic independence. This strategic push is evident in the recent unveiling of the EU's AI Gigafactories project, a bold move towards regionalism in the post-globalization era.

The AI Gigafactories project, detailed in the EU's AI Continent Action Plan, envisions the creation of digital cathedrals capable of training AI models with hundreds of trillions of parameters. The project received overwhelming interest, with seventy-six responses from sixty sites across sixteen Member States, totaling nearly two hundred billion euros in announced investments and the promise to employ more than three million latest-generation GPUs—thirty times the power of the largest current centers [1].

The EU's focus on domestic production and data security is evident in the project's requirements. These AI cathedrals require an energy architecture that Europe is actively developing, including long-term Power Purchase Agreements (PPAs) with renewable parks and the integration of small modular reactors. Additionally, the project emphasizes the importance of data sovereignty, cybersecurity, and the aggregation of renewable energy sources [1].

The push for data center sovereignty is not confined to AI Gigafactories. Austria, for instance, is investing heavily in its data center market, with a CAGR of 15.18% expected from 2024 to 2030. The Austrian government's AI strategy and the introduction of the O-Cloud Initiative demonstrate a commitment to enhancing the adoption of AI and promoting secure cloud services [2].

The EU's strategy is also reflected in the growth of its data center market, which is expected to expand significantly in the coming years. The EU's focus on regionalism and self-sufficiency in data infrastructure is a response to concerns over reliance on foreign providers and the need for economic independence. This shift is evident in the EU's push for AI Gigafactories and its support for local data center markets, such as Austria's.

In conclusion, the EU's AI Gigafactories project and its broader data center strategy represent a significant shift towards regionalism and self-sufficiency. These initiatives are driven by concerns over reliance on foreign providers and the need for economic independence, marking a strategic move in the global data center race. As the EU continues to invest in its data center infrastructure, it is poised to become a major player in the global data center market.

References:
[1] https://www.linkedin.com/pulse/ai-gigafactories-europe-makes-breakthrough-race-computing-gitton-shgle
[2] https://www.globenewswire.com/news-release/2025/07/14/3114970/28124/en/Austria-Data-Center-Market-Investment-Analysis-Growth-Opportunities-Report-2025-2030-Coverage-of-19-Existing-and-2-Upcoming-Data-Center-Facilities-Across-8-Cities-in-Austria.html