Dutch government commits 70 million euros to AI factory in Groningen
The Dutch government has announced a €70 million investment in a new artificial intelligence factory to be established in the city of Groningen. The contribution is part of a larger funding package that also includes €60 million from the northern provinces of Groningen and Drenthe. In addition, the Netherlands has submitted a request for €70 million in co-financing from the European Union, bringing the potential total investment to €200 million.
National innovation hub
The AI factory will serve as a national innovation hub focused on the development and application of advanced AI technologies. It will be equipped with a high-performance supercomputer, high-quality Dutch and European datasets, and a permanent team of experts. The facility is expected to support AI-driven innovation in sectors such as healthcare, energy, agriculture, manufacturing, defense and smart networks.
The large building of the former Niemeyer tobacco factory in Groningen is being considered as a possible location. The northern provinces have argued that Groningen is the clear choice due to its available space, strong energy infrastructure, and solid knowledge base, supported by institutions like the University of Groningen and the University Medical Center Groningen.
Vincent Karremans, the demissionary Minister of Economic Affairs, stated that the AI factory is essential to securing the Netherlands’ and Europe’s technological independence. “Those who don’t develop the technology themselves become dependent on others. This is not a luxury, but a pure necessity to maintain our digital independence and competitiveness,” he said.
In addition to national and regional government support, the project is backed by several Dutch knowledge institutions and organizations, including SURF, TNO, and AIC4NL.
Broader European ambition
The investment is part of a broader European ambition to strengthen AI capabilities within the EU and reduce reliance on foreign technology, particularly from the United States and China. The Dutch plan aligns with the goals of the EuroHPC Joint Undertaking, which aims to create a network of AI-focused supercomputing centers across Europe.
If approved by the EU, the Groningen project would be one of Europe’s key AI infrastructure sites. The grant application has been submitted under the EuroHPC and Horizon Europe programs, with a decision expected later this year. If the funding is granted, construction of the facility could begin in 2026. The supercomputer is expected to be commissioned that same year and fully operational by early 2027.
