Vienna is fighting for an AI Gigafactory: 5 billion for the future!

Vienna is fighting for an AI Gigafactory: 5 billion for the future!

The discussion about the future of Vienna as a location for a European “AI Gigafactory” is gathering pace. On June 20, 2025, Mayor Michael Ludwig emphasized that Vienna's chances of receiving one of the promising AI factory locations are very good. According to a report by meinkreis.at The EU is planning to build up to five such gigafactories in various European cities. These state-of-the-art facilities are intended to develop, train and operate AI models and are central to Europe's competitiveness in the digital age.

Mayor Ludwig received support from Chancellor Christian Stocker and other politicians, and together they signed Vienna's application for the AI ​​Gigafactory. The EU initiated this step as part of its strategy to strengthen digital sovereignty and competitiveness.

Energy efficiency in focus

An important aspect of the application is Vienna's planned energy concept. The Gigafactories require a significant amount of energy, and Vienna plans to obtain almost 100% of this energy from alternative sources. An innovative part of the concept envisages feeding the waste heat from the servers into the existing district heating network, which represents a dual form of use - the server heat not only helps to cool the systems, but also heats households in the city.

“We have a good knack for using waste heat sensibly,” says Ludwig. As part of the program, leading technology companies from Austria are also committed to positioning Vienna as a location for one of these gigafactories. How wien.gv.at reports, the application is divided into three pillars: an environmentally and climate-friendly sustainability concept, socially fair use of technology and Vienna's central hub function in Europe.

Investments and economic impact

The expected investments in the Gigafactory amount to up to five billion euros, with 65% of this sum coming from the private sector and up to 35% from public funds. The exact costs will be announced after the contract has been awarded. “It is important to form a strong consortium of public and private partners,” explained Innovation Minister Peter Hanke.

These gigafactories are not only important for Vienna, they are considered dynamic ecosystems for innovation and cooperation in the AI ​​sector. These facilities combine computing power, data and talent to drive meaningful advances in diverse sectors such as health, manufacturing, climate and finance. The EU plans to put at least 15 AI factories into operation by 2025, with Vienna wanting to exploit all possibilities to become part of this forward-looking project.

The selection process for the Gigafactories will be intensified in the fourth quarter of 2025 and completion is scheduled for 2028. It remains exciting to see whether Vienna can assert itself in this competition and what role it will play in future AI development in Europe.