Spain thinks big: State-backed AI gigafactory targets €5 billion investment

Spain is the only European country bidding for an EU artificial intelligence gigafactory through a company almost half-owned by the state.

The Spanish Society for Technological Transformation, known as SETT, holds 47.99 per cent of the project company, while the Catalan Government owns another 1 per cent.

The project forms part of the wider European push to increase artificial intelligence computing capacity, with Spain planning significant public investment as it competes against proposals from elsewhere in Europe.

Spanish investment

Telefonica, ACS and Banco Santander each hold 15.67 per cent of the company behind the Spanish proposal, while Multiverse Computing controls 4 per cent.

Spain plans to commit €720 million to the project, which aims to mobilise around €5 billion in investment.

Another €300 million would go to European supercomputing organisation EuroHPC.

The ownership structure makes the Spanish proposal different from those being pursued by several other European countries, with the state taking a substantial direct stake in the company involved.

If selected, the project would represent a major investment in Spain’s artificial intelligence infrastructure and computing capacity.

European approaches

Other European countries have chosen different approaches to the development of AI gigafactories.

Germany, France, Portugal and Poland plan to provide financial support or purchase computing capacity without taking direct ownership stakes.

Spain’s approach therefore stands out because of the 47.99 per cent holding controlled by SETT, in addition to the Catalan Government’s 1 per cent stake.

The involvement of Telefonica, ACS, Banco Santander and Multiverse Computing also brings together major Spanish companies from the telecommunications, construction, banking and technology sectors.

EU selection

Brussels received 77 expressions of interest for AI gigafactories as countries and companies across Europe compete to secure a place in the programme.

Applications remain open until November 12, with the EU expected to select up to seven projects in early 2027.

The proposed Spanish gigafactory will therefore face considerable competition before a final decision is made.

With around €5 billion in investment targeted and hundreds of millions of euros in planned Spanish state funding, the outcome could play an important role in determining Spain’s position in Europe’s rapidly developing artificial intelligence infrastructure.