Netherlands says no to AI gigafactory, and that's a problem
The government is not investing in a large AI gigafactory. Experts warn that this could have major consequences for our digital autonomy.
Published on August 1, 2026
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Europe wants to build seven massive AI factories to reduce its dependence on the United States and China. The Netherlands, however, is not participating in this effort. The government refuses to invest in a large Dutch AI gigafactory 🔗︎. This decision has major consequences for our economy and our technological independence.
Government opts for a passive role
The government has deliberately chosen to take a passive role in the construction of large-scale AI infrastructure 🔗︎. State Secretary for the Digital Economy Willemijn Aerdts informed the House of Representatives that there is simply no funding available in the current budget 🔗︎. An AI gigafactory requires enormous investments and financial guarantees from the government 🔗︎. Furthermore, the government believes that the market should bear these risks itself 🔗︎.
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In addition, policymakers point to practical problems in our country. A gigafactory consumes an enormous amount of electricity. The Dutch power grid is already overloaded due to grid congestion. There is also little physical space available for such large buildings.
Rotterdam plan in shambles
The Netherlands is in danger of missing out on a unique opportunity. Leading entrepreneur Han de Groot wants to build an AI gigafactory in the Port of Rotterdam and make use of a European subsidy program to do so. However, participation is only possible if the Dutch government also contributes financially. That support has not materialized. According to State Secretary Willemijn Aerdts, there is no room for it in the current budget. Furthermore, the cabinet believes that investments in AI gigafactories are primarily a task for the market. The plans for Rotterdam are therefore not off the table, but they have been adjusted. This is noteworthy, as the Netherlands is actually considered a logical location for an AI gigafactory. Thanks to the large supply of offshore wind energy and the rapid growth of solar energy, such a data center can be built close to renewable energy sources. This reduces the strain on the power grid and makes the energy supply more efficient.
Millions from Brussels slip away
Due to the cabinet’s rejection, the Netherlands is missing out on a lot of European funding 🔗︎. The European Union wants to build seven AI gigafactories 🔗︎. A massive subsidy fund has been set aside for this through the EuroHPC Joint Undertaking. The EU and eighteen member states are collectively contributing 10 billion euros 🔗︎. Private parties must contribute another 20 billion euros 🔗︎. This funding is intended for factories with a capacity of at least 75,000 to 100,000 AI chips per location 🔗︎. However, Brussels has set a strict condition for these subsidies: a member state must also make a financial contribution or provide guarantees 🔗︎. The Netherlands refuses to provide the mandatory 17 percent government guarantee 🔗︎. As a result, our country cannot participate in the European tender 🔗︎. As a result, the Netherlands is missing out on hundreds of millions of euros in direct European aid 🔗︎. Other European countries are now benefiting from this and are building the factories on their own territory.
Groningen as a meager consolation prize
The government points out that the Netherlands isn’t left completely empty-handed 🔗︎. A smaller AI factory will indeed be built in Groningen 🔗︎. A total of 200 million euros is available for this project 🔗︎. This funding comes partly from European subsidies 🔗︎. Although this is positive news for the region, the project cannot be compared to a gigafactory 🔗︎. The factory in Groningen is much smaller and has far less computing power. Critics therefore call the project a meager consolation prize.
Major risks to our autonomy
The absence of the gigafactory has major consequences for the Dutch economy. Without our own infrastructure, we will become completely dependent on foreign parties 🔗︎. Dutch companies will soon have to send their data to American or Asian cloud servers. This poses major risks to the privacy and security of our data. We’ll also lose control over our own technological autonomy 🔗︎. If global tensions escalate, foreign tech giants could restrict access to their systems. In addition, there is a risk of a brain drain of talent. Young AI researchers and innovative startups will leave the Netherlands. They would rather go to countries that do have the most modern supercomputers, such as Germany. This will severely hamper our long-term innovative capacity 🔗︎. As a result, we will lose our position as a digital leader in Europe.
An uncertain outlook
This decision has cast uncertainty over the future of the Dutch AI sector. The deadline for the first European AI gigafactories is 2028 🔗︎. Starting that year, the first sites must be fully operational 🔗︎. At that point, the European Union will also release the remaining billions from the subsidy fund 🔗︎. The Netherlands will have to watch from the sidelines as other countries build these advanced networks.