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Spain plans Europe's next AI gigafactory: EU gives green light for 5 billion euro project. Wallstreet Online Friday, August 21, 2026, 10:01 The EU Commission approves a joint venture for data centers in Spain. Behind it lies a much larger goal: its own AI gigafactory. The European Commission has approved a joint venture involving Telefónica, Banco Santander, AI Infrastructure Development, and the state-owned SETT. According to the Brussels authority, there are no competition concerns, as the companies involved only hold limited positions in the affected markets. Officially, the focus is initially on so-called colocation services in Spanish data centers. In this model, operators provide companies with floor space, power supply, cooling, and network connectivity for their IT infrastructure. But behind these operations lies a significantly larger endeavor. Spain wants to build its own AI gigafactory. The companies involved want to jointly advance Spain's bid for one of the planned European AI gigafactories. The planned facilities are intended to provide enormous computing capacities for training and operating large AI models. Spain has already established a public-private consortium for this purpose. Telefónica, Santander, and the infrastructure group ACS, which is involved through AI Infrastructure Development, each hold 15.67 percent. The Spanish AI company Multiverse Computing holds 4 percent. State-owned SETT holds the largest share with 47.99 percent, and the remaining 1 percent goes to the Generalitat de Catalunya. Sites are planned in Tarragona and the Madrid area. The infrastructure is intended to be available not only to companies but also to universities and research institutions. Billions for Europe's own computing power. According to available information, the project could mobilize investments of around 5 billion euros. The Spanish government has already approved around 719 million euros via SETT. A further 300 million euros are to be provided through a voluntary payment to the European high-performance computing initiative EuroHPC. Spain wants to submit its application from September as part of the European gigafactory program. Whether the country will actually win the bid for one of the planned facilities remains to be seen. EU wants to become less dependent on the US and Asia. For the European Union, such projects are part of a larger strategy: Europe wants to reduce its dependence on computing power and cloud infrastructure from the US and Asia and build its own capacities for artificial intelligence. For Telefónica, the project also opens up the opportunity to position itself more strongly as a provider of critical AI and data center infrastructure. ACS brings its experience with large infrastructure projects, while Santander acts as a financial partner. The current decision from Brussels is therefore not yet the approval of the AI gigafactory itself. It first clears the way for the joint venture. The crucial next step is Spain's bid for one of the European AI gigafactories. The original version of this article, "AI Gigafactory for Europe: This 5-billion-euro plan gains momentum" by Paul Späthling, comes from Wallstreet Online.

European Commission approves Spanish AI gigafactory venture. The European Commission approved a joint venture between ACS AIID, Telefónica, Banco Santander, and SETT to develop Spain's AI gigafactory. The project, planned for Móra la Nova and San Fernando de Henares, is supported by €719 million in public investment. Spain will compete for one of up to seven EU gigafactories, with decisions expected in early 2027. 16 minutes ago August 21, 2026 The European Commission (EC) has approved the creation of the Spanish Gigafactory of Artificial Intelligence, a joint venture between AI Infrastructure Development (ACS AIID), Telefónica, Banco Santander, and the public entity Spanish Society for Technological Transformation (SETT). The new company, notified to Brussels on July 17th, was approved under European Union merger-control regulations. It will be eligible to participate in the European Commission's future call for proposals to develop high-performance infrastructure for artificial intelligence. The project aims to develop "sovereign and sustainable" AI computing capabilities in the European Union and provide services to the Commission and other clients. Planned locations for the AI gigafactory in Spain. According to Efe, the project includes the construction of an AI gigafactory at the El Molló industrial park in Móra la Nova, Tarragona. On July 30th, the European Commission launched a call for proposals for up to seven AI gigafactories across the EU. Spain hopes to secure one of them, with proposed locations in Móra la Nova and San Fernando de Henares in Madrid. The bidding process will remain open until November 12. Spain's joint venture will now be able to compete for the European initiative. €719 million investment. To support the Spanish bid, the Council of Ministers authorized an investment of €719 million through SETT in the public-private consortium, for the AI gigafactory construction, in mid-June. This investment comes in addition to a voluntary contribution of €300 million to the European High Performance Computing Joint Undertaking (EuroHPC). The consortium brings together ACS AIID, Telefónica, Banco Santander, and SETT, combining private-sector participation with public investment in the proposed AI infrastructure. No competition concerns, European Commission says. The European Commission concluded that the creation of the joint venture does not raise competition concerns. Brussels reached this conclusion after examining the transaction under a simplified procedure. The procedure was used because the participating companies would have only limited positions in the relevant market following the merger. The approval clears the way for the consortium to participate in the European Commission's call for proposals and continue developing its plans for the Spanish AI gigafactory. Decision expected by 2027. The European Commission expects to decide on the successful proposals by early 2027. The selected AI gigafactories are expected to become operational within a maximum of 18 months after the contracts are signed. For Spain, the next step is the European selection process, with Móra la Nova and San Fernando de Henares proposed as locations. The Spanish project is intended to strengthen the country's AI computing capabilities while contributing to the European Union's goal of developing sovereign and sustainable infrastructure for artificial intelligence. The outcome of the European call will determine whether Spain secures one of the planned gigafactories. 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First published in El INDEPENDIENTE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail. Although Born2Invest made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, Born2Invest encourage you to contact Born2Invest. Andrew Ross is a features writer whose stories are centered on emerging economies and fast-growing companies. His articles often look at trade policies and practices, geopolitics, mining and commodities, as well as the exciting world of technology. 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