Brussels, Sept. 20 (SANA) Europe could face costs of up to €600 billion over the next decade to close its widening artificial intelligence infrastructure gap as AI adoption accelerates, intensifying efforts to expand computing capacity and reduce dependence on foreign technology.
European Central Bank President Christine Lagarde said Europe already has too little data-center capacity to meet its own demand and, under current trends, the gap is projected to grow more than sixfold within a decade.
A study commissioned by the European Commission projects the capacity gap to rise from about 3 gigawatts in 2025 to around 20 gigawatts by 2036. An ECB estimate put the potential cost of closing the gap at as much as €600 billion over the next decade, including chips, while noting that the figure should be regarded as an upper-bound estimate.
AI investment accelerates
Lagarde said euro-area companies are expected to devote around 10% of their total investment to AI in 2026, while AI-related borrowing accounted for about a quarter of the growth in credit to companies in the first quarter of the year, according to ECB staff estimates.
AI use among workers is also expanding rapidly. More than 50% of euro-area workers now use the technology on the job, double the share recorded two years ago.
The ECB estimates that rapid AI adoption could raise productivity by up to 4% over a decade, offering Europe a potential source of growth as its workforce shrinks and investment requirements increase.
The International Monetary Fund separately estimated that AI could lift European productivity by about 1% over five years, but warned that the gains and costs would be distributed unevenly across countries, regions and workers.
Around 60% of workers in advanced European economies are employed in occupations highly exposed to AI, according to the IMF. While some could become more productive, others face displacement risks as routine tasks are automated.
Europe trails US and China in AI capacity
Despite growing adoption, Europe remains well behind the United States and China in the development of advanced AI models and computing infrastructure.
Lagarde said the United States produced 59 notable AI models last year and China 35, compared with one each in France and the United Kingdom.
The United States also hosts about three-quarters of global AI computing capacity, while Europe accounts for just 5%, she said.
Lagarde said importing technology was not necessarily a disadvantage, but warned that AI creates particular concerns because of the importance of data, computing infrastructure and access to advanced models.
Europe needs to expand its own data-center capacity and develop AI models that can operate on European infrastructure to reduce the risks associated with dependence on external providers, she said.
EU seeks major expansion in computing capacity
European Commission President Ursula von der Leyen also called this week for Europe to “massively boost its computing capacity,” saying the continent needs its own capabilities to safeguard its independence and national security interests.
She said the EU would develop new ways to mobilize public and private funding for promising European start-ups and companies as it seeks to strengthen its position in the global AI race.
[9/20/2026 11:45 AM] Ec Sana: The EU in July launched a call to establish up to seven AI Gigafactories across Europe. The initiative is backed by up to €10 billion in EU and national funding and is expected to mobilize at least €20 billion in additional private investment.
The Gigafactories are intended to provide start-ups, companies, researchers and public authorities with large-scale infrastructure for training and operating advanced AI models.
They will complement a European network of 19 AI Factories designed to expand access to computing resources and support AI development across the bloc.
Rising pressure on energy infrastructure
The expansion of AI also poses challenges for Europe’s electricity system.
The IMF estimates that data centers already account for roughly 3% of the continent’s electricity consumption, with demand expected to rise sharply as AI adoption expands.
Technology hubs including Frankfurt, London, Amsterdam, Paris and Dublin are among the areas where concentrations of data centers are already putting pressure on local power networks.
The IMF has called for greater investment in cross-border electricity infrastructure and deeper integration of Europe’s energy market to accommodate rising demand.
It has also warned that Europe risks greater strategic dependence because the United States and China dominate AI model development, saying significant investment in Europe’s own AI industry will be needed to reduce reliance on foreign technology.
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