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Spain plans an AI gigafactory with a €5 billion investment

The Spanish government aims to establish an AI gigafactory with a €5 billion investment in Madrid and Tarragona.

Álvaro Sáez Ferrer
Álvaro Sáez Ferrer
· 2 min read

The Spanish government aims to establish an artificial intelligence gigafactory with an investment of approximately €5 billion. The construction of this infrastructure is planned in two locations: Madrid and Tarragona.

During the 40th Meeting of Digital Economy and Telecommunications, the Minister for Digital Transformation and Public Function, Óscar López, expressed his belief that Spain will host one of the three major AI gigafactories in Europe, according to expansion.com. The initiative, which includes companies such as Telefónica, ACS, Banco Santander, and Multiverse Computing, aims to enhance the development of advanced artificial intelligence through massive data centres.

The European Commission has already given the green light to this project, which includes two locations: San Fernando de Henares in Madrid and Móra de Nova in Tarragona. The initial investment from the government amounts to €720 million through the Spanish Society for Technological Transformation (SETT). The call for this consortium closes on November 12 of this year, and the awarding is expected to take place in early 2027.

Óscar López highlighted that this initiative is part of a broader effort for digital transformation in Spain, which includes the creation of the AI Supervision Agency and significant investment in the sector. The gigafactory will be key to modernising public services and increasing the competitiveness of the private sector, always seeking a humanistic approach to artificial intelligence.

Additionally, the minister announced the resolution of the calls for Red IA and Red IA Salud, which will provide €180 million to over 370 AI projects. These grants focus on technological development and innovation in various areas, including health and cybersecurity.

Álvaro Sáez Ferrer

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Álvaro Sáez Ferrer

Redactor

Economista por ICADE y una de las pocas personas que disfruta leyendo la ley de presupuestos. Cafetero, padre a tiempo completo y azote de la letra pequeña; en Iber Empresa escribe de economía y fiscalidad.