Dutch Government Commits €200M to Launch AI Factory in Groningen
The Dutch government, in collaboration with the Groningen/Noord-Drenthe region and European partners, has announced a €200 million investment to establish a national AI Factory in Groningen. This initiative aims to secure the Netherlands’ digital independence and reinforce its position as a key player in European artificial intelligence development.
The AI Factory will act as an innovation hub where researchers, entrepreneurs, and government entities collaborate to develop advanced AI technologies. The facility will be equipped with a supercomputer providing significant computational power, enabling secure data storage and processing to support AI applications in sectors such as smart agriculture, healthcare, energy, security, defence, and manufacturing.
Strategic Importance
Minister Karremans of Economic Affairs emphasized the necessity of this investment: “AI will fundamentally change our economy and society. Dependence on external technology is not an option. We are committed to building a strong Dutch AI infrastructure to maintain digital independence and competitiveness.”
The funding breakdown includes €70 million from the national government, €60 million from regional administrators through the Economic Agenda of ‘Nij Begun’, and a pending €70 million European co-financing application submitted by a consortium comprising SURF, AIC4NL, TNO, and Samenwerking Noord. If approved, this will bring the total investment to €200 million.
Why Groningen?
Groningen was chosen due to its robust network of universities, technical institutes, and innovative businesses. Additionally, the region offers sufficient grid capacity, an essential factor given congestion challenges elsewhere. The AI Factory will be housed in a repurposed former Niemeyer tobacco factory, which will accommodate advanced technology and research facilities.
The facility is expected to be operational by 2026, with the supercomputer reaching full capacity by early 2027. Once active, it will become a key site for experimentation, collaboration, and commercialization of AI solutions, helping Dutch businesses maintain competitiveness.
Parallel Developments
Alongside Groningen’s project, South Holland has submitted a proposal to host an AI gigafactory. This initiative is led by entrepreneur Han de Groot, in partnership with Eneco and a broad consortium of Dutch knowledge institutions and companies.
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