Vienna applies as location for European AI GigaFactory
June 23, 2025|TA
Federal government, City of Vienna, social partners and leading companies join forces
In a significant step for the future of artificial intelligence in Europe, Federal Chancellor Christian Stocker, Vienna Mayor Michael Ludwig, Federal Minister for Innovation and Infrastructure Peter Hanke, State Secretary for Digitalisation Alexander Pröll and Deputy Mayor Bettina Emmerling have jointly signed Vienna's application for one of the planned European AI GigaFactories. This alliance underscores the joint determination and commitment to position Austria and Vienna as a central location for technological innovation.
The EU plans to build up to five AI (artificial intelligence) GigaFactories to strengthen European competitiveness and digital sovereignty. The high-performance infrastructure is specifically required for the training, development and operation of state-of-the-art AI models and must meet the highest standards of data protection, IT security and energy efficiency.
With the official expression of interest, Austria and Vienna are entering the race for one of the five data centres. This step was made possible by close cooperation between politics and business, as the construction requires the formation of a strong and viable consortium of public and private partners. Leading technology companies based in Austria have also expressed their support.
The expected investments amount to a total volume of up to 5 billion euros. At least 65% is to be provided by the private sector and up to 35% from public funds. In addition to the necessary infrastructure, Vienna's bid is based on three pillars: an environmentally and climate-friendly sustainability concept, a socially equitable form of technology use in line with ‘digital humanism’, and Vienna's exceptional hub function within Europe.
"With our bid for a European AI GigaFactory in Austria, we are demonstrating that we are ready to take responsibility for Europe's digital future. Projects like this are important because they not only strengthen our location, but also further expand our technological competitiveness. For a sustainable economic upturn, it will be crucial to focus on areas where future technologies and location policy interact in a meaningful way,” said Federal Chancellor Christian Stocker.
Mayor Michael Ludwig emphasises: “Vienna enjoys an excellent global reputation for its efficient infrastructure, high quality of life and innovative strength. An AI GigaFactory would ideally complement the existing network and further strengthen our business location. We stand for technological excellence, consistent climate policy and strong social cohesion. We are bringing these strengths to bear in our application, together with the federal government and committed companies, thereby positioning Vienna as a responsible, competitive location for artificial intelligence in Europe.”
“The Federal Ministry for Innovation, Mobility and Infrastructure plays a key role in the further development of the Austrian AI sector. With EuroHPC's decision to locate one of the six new European ‘AI Factories’ in Vienna, we have achieved an important milestone. AI is a cross-cutting technology that can give companies decisive competitive advantages while supporting important social and ecologically necessary transformation processes in a wide variety of areas. Investments in strengthening Austria as a location for AI and digital technology are a direct contribution to securing competitiveness. I therefore support the application to establish an AI GigaFactory in Vienna, which would be another important piece in the puzzle of building an AI hub and thus a booster for innovation and the domestic economy," emphasises Innovation Minister Peter Hanke.
Vienna's bid is based on three pillars: an environmentally and climate-friendly sustainability concept, a socially equitable form of technology use, and Vienna's exceptional hub function within Europe
"Digital sovereignty is one of the strategic priorities of Europe and Austria. In times of increasing geopolitical tensions, hybrid threats and technological dependencies, it is of central importance to strengthen Europe's digital capacity to act in the long term – also with a view to securing and further expanding the digital competitiveness of the European Union. By applying for an AI GigaFactory in Austria, we are underlining this national interest and making it a top priority. Because those who share today's data will write tomorrow's history," said State Secretary for Digitalisation Alexander Pröll.
Deputy Mayor Bettina Emmerling emphasises: "With its bid for the AI GigaFactory, Vienna is sending a strong signal for digital sovereignty and technological leadership in Europe. We are creating an infrastructure that not only delivers world-class computing power, but will also become the high-speed data network of the 21st century – a driver of innovation, economic growth and climate protection. Through intelligent integration into the urban energy system and the use of waste heat to supply thousands of households, Vienna is demonstrating how digitalisation and decarbonisation go hand in hand."
Innovation with responsibility for people and the environment
High-performance data centres are now essential for the functioning of society and the economy. They are among the most energy-intensive infrastructures, for which the City of Vienna and Wien Energie have developed an energy concept. The waste heat from the data centre's servers is fed directly into the existing district heating network and used to heat Viennese households.
Another unique feature of the Vienna initiative is its clear commitment to social responsibility, as set out in the Vienna Manifesto on Digital Humanism. The principles of digital humanism place human needs at the centre of technological progress.
Strong alliance for a digital future
The City of Vienna, the federal government, and companies quickly joined forces for this application. Within a few days, leading Viennese technology companies expressed their support for the project in a letter of intent.
“This is a clear commitment to Vienna as a business location and shows that the City of Vienna, the federal government, academia and private companies are pulling together for innovation and digital sovereignty,” explains Barbara Novak, City Councillor for Finance, Economy, Labour, International Affairs and Digitalisation. “With this project, we are leveraging the economic and scientific potential of a giga data centre in Vienna – triggering investments worth billions with sustainable impetus for technology and research companies, creating highly skilled jobs and promising new opportunities for cooperation with European innovation clusters.”
As the City of Vienna's business agency, the Vienna Business Agency is coordinating the application process and acting as the central interface between the public sector, private industry and academia.
Information on the next steps
The EU will evaluate all applications received and will conduct an in-depth selection and application process among the remaining cities in the fourth quarter of 2025. According to the EU plan, the AI GigaFactory is scheduled to start operations in 2028.