TopDutch region puts European AI ambitions on the map with proposed AI Factory

Artificial Intelligence (AI) is evolving fast, with its transformative potential more visible than ever. Yet the European tech sector and deeptech ecosystem have been struggling to keep up with established global frontrunners like the USA and China. This has left Europe dependent on a handful of foreign AI-technology providers, raising concerns about its geopolitical autonomy, economic competitiveness, and ability to tackle significant societal challenges. Could a new AI-Factory in the TopDutch region change that?

In recent years, the European Union and its member states have increasingly acknowledged the need to step up. Through legislative tools, targeted investments, and a strong vision for an AI-powered future, the EU responds with plans to establish an AI ecosystem that safeguards strategic autonomy and fosters innovation across member states in alignment with European values.

A crucial part of this effort materializes in the form of ‘AI factories’: Specialized computing infrastructure purpose-built for AI. These facilities host the entire AI development pipeline under one roof, transforming large-scale raw data into actionable insights that support data-driven decision-making. Providing greater control over core AI capabilities and applications, AI factories can thereby contribute to strengthening Europe’s digital sovereignty and international competitiveness. 

Dutch ambitions in AI

Within the EU, the Netherlands is primed to become a leading specialist AI nation, with the government, entrepreneurs, and skilled scientists and practitioners ready to use and build upon existing digital infrastructure. 

The Netherlands’ 2019 “Strategic Action Plan for Artificial Intelligence” and the expanded 2024 “Government-Wide Vision for Generative AI” form the cornerstone of a strategic national approach to AI that aims to seize opportunities, develop an attractive AI ecosystem, and promote innovation in a transparent, equitable, and sustainable manner.

However, realizing European and Dutch ambitions for AI leadership requires more than policy. It calls for significant investments in digital infrastructure, computing power, high-quality ethical data, as well as the attraction and retention of innovative companies and skilled talent. 

At the European level, immediate steps have been taken under the European High Performance Computing Joint Undertaking for the creation of AI Factories designed to support a broad range of public and private users, and accelerate the development of large General Purpose AI (GPAI) models.   

National Commitment: €200 Million to Launch Groningen’s AI Factory

One of these AI Factories could soon take shape in Groningen, as various local stakeholders have set out their case that the TopDutch region is the ideal location for such an initiative.  

On June 27th, 2025, the Dutch government officially confirmed its commitment to the Groningen AI Factory with a total investment package of €200 million. This funding includes €70 million from the national government, €60 million from the Groningen and North Drenthe region under the 'Nij Begun' economic agenda, and a proposed €70 million in European co-funding submitted by a consortium including SURF, AIC4NL, TNO, and Cooperation North.

Minister of Economic Affairs Karremans emphasized the strategic importance of this investment, stating that AI will fundamentally transform our economy and society, and that developing our own AI infrastructure is not a luxury but a necessity for maintaining digital independence and competitiveness. With the AI Factory expected to be operational in 2026 and the supercomputer running at full capacity by early 2027, this marks a defining moment in the Netherlands’ ambition to lead in responsible and sovereign AI development that is anchored in the TopDutch region.

Under the proposed plan, the AI Factory will be located in the historic Niemeyer tobacco plant, transforming the site into a cutting-edge AI and supercomputing center. Key features will include a high-capacity supercomputer for developing advanced AI models, a research center dedicated to pioneering scientific work, and an expertise hub where businesses and start-ups can collaborate on responsible AI solutions.

The goal of the Factory will be to enable researchers and entrepreneurs to work on high-quality, advanced AI applications while maintaining a strong commitment to Dutch and European principles of sustainability and transparency. 

Empowering regional innovation and economic growth

The AI Factory doesn’t only add to the national AI strategy, but also fits perfectly in the TopDutch region’s mission to accelerate the digital transition. The project is designed to directly empower the Northern Netherlands, speeding up innovation and bolstering the regional economy. Paving the way for more locally-driven solutions for challenges in healthcare, energy, and mobility.

Healthcare advancements in the North

The University Medical Center Groningen (UMCG) is already working actively on AI-powered healthcare solutions, for example early detection of diseases like prostate cancer.. With the supercomputing capabilities of the AI Factory, healthcare institutions throughout the region will gain access to advanced tools that enable quicker, more accurate diagnoses and personalized treatment plans. This will strengthen the TopDutch region’s position as a frontrunner in health innovation and solutions for healthy ageing.

Accelerating the energy transition

The Northern provinces are leading the charge in the Netherlands' shift towards sustainable energy. The AI Factory could enhance this role by promoting smarter, data-driven solutions for green energy systems. By teaming up with organizations like the New Energy Coalition and the AI Hub Northern Netherlands, they aim to optimize how energy is produced and consumed, positioning the region as a trailblazer in clean and efficient energy technologies.

Boosting the local economy and talent development

With a quarter of the supercomputer’s capacity earmarked forto local use, businesses, startups, and research institutions in the area will gain direct access to state-of-the-art AI technology. This ensures that innovations born in the Northern Netherlands remain local, benefiting the communities and economies there. Moreover, the AI Factory is expected to create between 30 and 50 high-skilled jobs and provide cutting-edge training opportunities for students and professionals across all educational levels. This initiative will help cultivate a robust talent pipeline, keep skilled workers in the region, and make the TopDutch region an appealing hub for tech companies and R&D centers.

We’re not just putting Europe’s AI ambitions on the map — we’re making them happen, right here in Groningen

As Europe seeks to assert digital sovereignty and foster innovation across the bloc, projects like AI Factories are more than just opportunities - they can serve as powerful vehicles for turning ambition into action. 

And the TopDutch region is doing so. With the proposed AI Factory in Groningen, the region is taking a direct step towards shaping an innovative, inclusive, and transparent digital future grounded in European values. Building on our regional strengths in healthcare and the energy sector and harnessing the power of advanced, pioneering technology, the AI Factory has the potential to not only position the Northern Netherlands as a frontrunner in AI innovation but also to act as a catalyst for development and growth across the TopDutch region and beyond.