Groningen pledges to invest €60 million in an AI factory
The hub would train local AI models, building a supercomputer and an expertise center.
Published on May 14, 2025
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In a letter sent to the other local institutions, the province of Groningen and North-Drenthe announced their intention to invest €60 million to set up an AI factory in the region. This AI hub will house a supercomputer, reducing dependence on international tech giants and fostering local innovation.
An AI factory is an infrastructure for training AI models. At the moment, Europe depends on American and Chinese companies for this. Therefore, the European Commission launched the AI Factories initiative, aiming to stimulate the creation of more of these centers.
The project that Groningen and North-Drenthe want to finance would comprise a supercomputer, access to reliable European or Dutch data sources, and a center of expertise. The hub would be housed in the former tobacco factory of Niemeyer in Groningen.
Strategic impacts and economic growth
This investment is not just about technology, but about community and economic revitalization. The AI factory is expected to catalyze innovations that tackle impositions on healthcare, energy, and mobility sectors by facilitating advanced AI applications. Notably, the facility envisions a symbiotic relationship with local enterprises, dedicating a quarter of its computational resources to regional entities to ensure local needs drive technological endeavors.
Alongside economic benefits, the AI factory will serve as a knowledge center, intertwining closely with universities and research institutions. This partnership will foster an environment ripe for nurturing AI specialists, thus reinforcing the region’s educational framework. Educational institutions like the University of Groningen have publicly supported the initiative, emphasizing its potential to enhance regional autonomy and innovation through collaborative AI research and development.
Securing funding and next steps
With €60 million pledged by local authorities, the project awaits matching funds from the Dutch government. This additional commitment could unlock further EU investments, potentially amplifying the available resources to between €80 and €120 million through European co-funding schemes. The decision by the central government is anticipated in the near future, marking a crucial step toward realizing this visionary project by leveraging regional and European support.
