€200M boost for Dutch AI factory in Groningen
The AI factory will serve as an innovation hub, to work on future developments of the technology. It should open in 2026.
Published on June 27, 2025
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The Dutch government and the region of Groningen are investing €200 million to finance the construction of an AI factory, as announced in a press release by the cabinet. The AI factory will serve as an innovation hub, bringing together researchers, entrepreneurs, and government entities to work on future developments of the technology. Proponents expect to have it open by next year.
The facility will feature a supercomputer with extensive computational capabilities, enabling the secure storage and processing of data for the development of next-generation AI applications. These resources will attract a range of activities, from experimenting with AI applications in smart agriculture to enhancing healthcare delivery, energy networks, security, defense, and manufacturing sectors. The choice of Groningen was strategic due to its robust network of knowledge institutions and innovative enterprises, alongside available capacity on the electricity grid—a notable advantage given the grid congestion in many regions.
The government had previously unveiled plans to set up an AI facility to strengthen the country's position in this domain.
Staying competitive
The €200 million investment in the AI factory stems from a collaboration between the Dutch government, the Groningen/Noord-Drenthe region, and European partners. The Dutch cabinet has allocated €70 million, with an additional €60 million sourced from regional governance through the Economische Agenda Nij Begun. Moreover, a co-financing proposal has been submitted to secure €70 million from a European fund dedicated to setting up 13 such factories across the EU. The coordinated investment aims to establish a robust AI infrastructure in the Netherlands, which is crucial for maintaining a competitive advantage and ensuring self-reliance in a domain dominated by the United States and China.
The European Commission's plan involves a network of AI Factories across the continent, designed to bolster AI innovation and reduce reliance on US and Chinese technology. This initiative aligns with the EU's commitment to becoming a leader in AI by providing the necessary computing power, data, and talent across its member states. The establishment of AI Factories is part of a broader strategy to decentralize AI capabilities across Europe, thereby strengthening the region's AI infrastructure.
In addition to Groningen's bid to host a gigafactory, there is another candidacy to host an AI gigafactory from the province of South Holland. The initiative was promoted by entrepreneur Han de Groot, together with energy company Eneco and a broad consortium of Dutch knowledge institutions and companies.
