Vienna as Europe's AI hub: Supercomputer Launched, Gigafactory in Sight
The Austrian capital is consolidating its position as a European hub for artificial intelligence (AI). With the imminent launch of AI Factory Austria (AI:AT) and its active bid to become one of Europe's AI gigafactories, Vienna is sending a strong signal for innovation and digital sovereignty.
The Technical University (TU) of Vienna is planned as the location. / Picture: © Wikimedia Commons, Dawid Michulec, CC BY 4.0
AI Factory Austria (AI:AT) is about to officially launch and is expected to significantly strengthen the domestic AI ecosystem comprising research, business, and public institutions. Following an information event held online today, the launch of AI:AT and the start of preparatory work are expected in July 2025. An official kick-off and the start of initial operational services are planned for September and October 2025, respectively.
As a central “one-stop shop” and coworking space for start-ups, researchers, and companies, the AI hub will be accessible from January 2026. An AI-optimized supercomputer, which is scheduled to go into operation in January 2027, forms the technological heart of the initiative. Investments of 50 million euros are earmarked for its purchase and five years of operation. A further €30 million will be invested in software services for data management, AI applications, and the AI hub, which will provide consulting, training, and ethical support. The supercomputer will be located at the Vienna University of Technology (TU Wien). The fields of application will initially focus on biotechnology, industrial production, physics, and public administration.
The project is led by Advanced Computing Austria (ACA) and the Austrian Institute of Technology (AIT) and funded by the EU's European High-Performance Computing (EuroHPC) Joint Undertaking program, with the Austrian federal government doubling the EU funding.
Vienna in the race for the “AI Gigafactory”
Parallel to the establishment of AI Factory Austria, Vienna has been campaigning intensively to host one of the up to five planned European “AI Gigafactories.” The official application, a joint project of the federal government, the city, and the business community was signed on June 20, 2025, by top politicians, including Federal Chancellor Christian Stocker and Mayor Michael Ludwig.
These Gigafactorys are designed as high-performance data centers specifically for the training, development, and operation of state-of-the-art AI models and are expected to have significantly more computing power than the AI Factories – with more than 100,000 specialized AI processors per location. The total investment for a gigafactory is estimated at up to five billion euros, with up to 35 percent coming from EU public funds.
In its application, Vienna is focusing on its strong infrastructure, high quality of life, innovative strength, sustainability, and social justice. An innovative energy concept envisages feeding the waste heat from the servers into the district heating network to heat households.
The decision on the locations of the AI Gigafactories is expected in the fourth quarter of 2025, with the planned launch in 2028. Other European countries such as the Netherlands have also applied, while in Germany the application process is more complex due to internal disagreements.
With these two initiatives – the concrete establishment of AI Factory Austria and the ambitious application for an AI gigafactory – Vienna is underlining its claim to become a leading center for artificial intelligence in Europe and to play a key role in shaping the continent's digital competitiveness.