The Netherlands has the opportunity to build a European data center with 100,000 AI chips and 20 petabytes of storage, but the government is lagging behind in terms of financial commitment. Energy company Eneco and data center party Volt, who together want to build the AI gigafactory, warn that neighboring countries are moving ahead and emptying the EU subsidy pot of 20 billion euros. “While the Netherlands actually has very good conditions,” according to Eneco.
The European Union will soon open the tender for five AI gigafactories. Before consortia can submit bids, member states must make a financial commitment in advance. The financing model for AI gigafactories stipulates that 65 percent of the investment costs must be borne by private parties, with government support for the remaining 35 percent. The latter can be a mix of EU funds and funds from a member state.
And that is where the problem lies. The Ministry of Economic Affairs confirms that “no public budget is (yet) available.” A decision is up to the new cabinet, which is still appointing ministers. Germany has already submitted a bid of €805 million.
Support from Wennink
Eneco and Volt report in a letter to Minister Heleen Herbert (CDA) that they have the “full support” of Peter Wennink, former CEO of ASML. Wennink advised the government with a comprehensive report on earning opportunities for the Netherlands. Such an AI gigafactory is an essential pillar for our economy, according to Wennink.
AI models are developed, trained, and used in this type of data center. According to European requirements, it contains at least 100,000 advanced AI chips and a storage capacity of at least 20 petabytes. A smaller AI factory is already being built in Groningen with €70 million in European support, but the gigafactory would exceed that by dozens of times.
Rotterdam port as the ideal location
Eneco and Volt have expressed interest in an AI gigafactory at the port of Rotterdam, near the landing point for heavy power cables from offshore wind farms. Electricity can be used there directly without burdening the overloaded national grid. “Proposals from consortia from member states that have not made a prior financial commitment will not be included in the assessment,” the letter writers quote from the European conditions.
Volt CEO Han de Groot argues that AI plays a key role in future economic growth, innovation, and security. However, the Netherlands can only participate if the government has committed funds to the EU. The ministry points out that the Wennink advisory report states that such a gigafactory “can be 100 percent privately financed.”
Eneco and Volt therefore warn that the Netherlands is at a crossroads. “Will we take our place at the forefront of Europe, or will we let this strategic opportunity pass us by?”