The Netherlands risks losing an EU AI gigafactory over slow funding decisions
The EU will soon open a tender for five AI gigafactories. Eneco and Volt want to build one in the Netherlands with at least 100,000 advanced AI chips and 20 petabytes of storage - the European bar for this class of data center.
They warn that neighboring countries are already moving, drawing from an EU subsidy pot of €20 billion. "While the Netherlands actually has very good conditions," Eneco notes, the government hasn't committed funds yet.
What's blocking progress
The financing model is clear: 65% private investment, 35% government support. That 35% can mix EU funds and member-state money - but member states must make a prior financial commitment before consortia can submit bids.
The Ministry of Economic Affairs confirms "no public budget is (yet) available." A decision falls to the incoming cabinet, which is still appointing ministers. Germany has already put in a bid of €805 million.
Industry backing and strategic value
Eneco and Volt say they have the "full support" of Peter Wennink, former CEO of ASML. In his advisory work for government, he positions an AI gigafactory as a key economic pillar: it's where European AI models are developed, trained, and used.
A smaller AI facility is underway in Groningen with €70 million in EU support. The proposed gigafactory would be dozens of times larger - a step change in capability and signal of intent.
Rotterdam is the practical choice
Eneco and Volt favor the Port of Rotterdam, near landing points for heavy offshore wind cables. Power can be used on-site, relieving the overloaded national grid.
That locational advantage is hard to copy. It also creates a direct link between offshore wind build-out and digital infrastructure demand at scale. See context from the Port of Rotterdam.
The rule that could exclude the Netherlands
EU tender conditions state: "Proposals from consortia from member states that have not made a prior financial commitment will not be included in the assessment." No commitment means no seat at the table.
Volt CEO Han de Groot frames it bluntly: AI is central to growth, innovation, and security. Participation requires the Dutch state to commit funds to the EU process - or step aside.
Counterpoint from the ministry
The ministry notes that the Wennink advisory report says a gigafactory "can be 100 percent privately financed." That's an option - but it doesn't solve the near-term eligibility hurdle for the EU tender, which still requires a state commitment upfront.
Eneco and Volt are clear: the country is at a crossroads. "Will we take our place at the forefront of Europe, or will we let this strategic opportunity pass us by?"
Decisions to make in the next 30 days
- Signal intent: Issue a formal letter of commitment (conditional on final tender terms) to meet EU eligibility.
- Set a provisional budget line: Earmark funds covering the state's share of the 35% support, to be blended with EU money once awarded.
- Prepare state-aid clearance: Pre-draft a notification package (if required) to avoid delays after award.
- Energy and capacity plan: Lock a power strategy tied to offshore wind, on-site distribution, demand response, and heat reuse.
- Permitting fast lane: Define a single permitting authority and timelines for environmental, power, and data-center approvals.
- Risk guardrails: Set conditions on security, data residency, supply-chain transparency, and emergency curtailment.
- Open access and public value: Require fair access for SMEs, research institutions, and public-sector workloads where feasible.
- Skills pipeline: Align with universities and vocational programs for high-density data center operations and AI engineering.
What you get for moving first
- Capability: European-scale training and inference capacity, on European soil.
- Resilience: Less exposure to external bottlenecks for critical compute.
- Economic gravity: Ecosystem pull for chip suppliers, model labs, and high-value AI services.
- Grid benefits: Ability to co-locate with offshore wind, with options for flexible load and heat reuse.
What to do now if you're in government
Push for a cabinet-level go/no-go on a conditional commitment this month. Without it, Dutch bids won't be assessed - and the €20 billion pool will flow elsewhere.
If you need a quick primer on funding structures and risk controls for national AI infrastructure, see the AI Learning Path for Policy Makers.
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