For now, the Dutch government is focusing on targeted investments in AI infrastructure. While the government is allocating funds for an AI facility, it is not yet doing so for large-scale AI gigafactories.
This is evident from a recent letter to Parliament from State Secretary Willemijn Aerdts, State Secretary for the Digital Economy and Sovereignty, which outlines the government’s position on European plans for AI computing power.
The core of the policy is that the Netherlands wants to keep pace with the development of artificial intelligence, but is doing so in a phased and financially manageable manner. For example, the government is investing, together with regional and European partners, in an AI facility in Groningen. According to the State Secretary, this lays an important foundation for research and innovation without having to immediately commit to the most demanding and expensive category of AI infrastructure.
At the same time, the Netherlands is keeping the door closed for now regarding participation in European AI gigafactories. Member states were given the opportunity to commit financially to joint tenders for large-scale computing power, but within the current budget, the government sees no room for this.
The State Secretary indicates that this means the Netherlands is not currently reserving any public capacity within these future facilities. Instead, the government is counting on Dutch companies, research institutions, and public authorities being able to make use of AI gigafactories being built elsewhere in Europe as soon as they become available.
The decision not to participate in AI gigafactories is partly based on previous recommendations, including the Wennink report. That report advocates for a market-driven development of this type of infrastructure. The government is following that approach and sees its primary role as improving the enabling conditions so that private parties can invest and operate within clear frameworks.
AI gigafactories clash with infrastructure
In addition, practical constraints play a significant role. Large-scale AI infrastructure places heavy strain on the power grid and requires substantial space. The Netherlands is already grappling with grid congestion and a shortage of space, making it difficult to accommodate new large-scale projects. The government emphasizes that future developments must be carefully aligned with these constraints, with a focus on sustainability and energy efficiency.
According to State Secretary Willemijn Aerdts, it is also uncertain to what extent Dutch parties will need the extreme computing power of AI gigafactories in the short term. These facilities are primarily intended for training the most advanced AI models, while many applications can also be carried out with smaller infrastructure. This means there remains a risk that large investments will not be fully utilized.
Instead, the Netherlands is opting for flexibility. The government wants to purchase computing power when there is an actual need for it, rather than committing to capacity in advance. By investing as much as 71 million euros in an AI facility in Groningen, but not yet in AI gigafactories, the cabinet is keeping its options open to adjust course later while remaining aligned with European developments.