AI Factory in Groningen One Step Closer With €70 Million From the Government
With the investment nearing €200 million, a factory with a supercomputer and innovation hub could position the North as a leading AI region in Europe.
The long-anticipated arrival of an AI factory in Groningen has come one step closer, following a €70 million pledge from the Dutch government. Combined with a €60 million regional contribution via Nij Begun, the total investment could rise to €200 million, pending a €70 million grant from the European Union. If approved, construction would begin in 2026, and the facility could be operational by early 2027.
Supercomputer and Knowledge Centre
The proposed AI factory will consist of two major components: a high-performance supercomputer and a knowledge centre. The supercomputer, which will specialise in training advanced AI models, will be located at a site still to be determined. The knowledge centre is expected to be housed in the former Niemeyer tobacco factory on Paterswoldseweg, soon to be transformed into a regional IT hub.
This dual structure will support collaboration among companies, academic institutions, and governments, enabling breakthroughs in AI applications across healthcare, agriculture, energy, manufacturing, and national security.
A Joint Regional and National Effort
The initiative has strong support at both national and regional levels. State Secretary Eddie van Marum and Minister of Economic Affairs Karremans emphasised the strategic importance of digital independence in a world dominated by U.S. and Chinese AI giants.
“AI will fundamentally reshape our economy and society,” said Karremans. “This investment is not a luxury, but a necessity to ensure our digital competitiveness and sovereignty.”
The regional investment will be drawn from Nij Begun, the compensation program designed to rebuild the northern economy following decades of gas extraction.
Boost for Northern Innovation and Jobs
Economic leaders in Groningen and North Drenthe view the AI factory as a once-in-a-generation opportunity. Jakob Klompien, economic quartermaster for Nij Begun, highlighted its potential to attract talent, generate employment, and stimulate the already growing digital sector in the North.
Academic institutions such as the University of Groningen (RUG) and UMCG have also welcomed the project, citing the region’s strong research base and infrastructure as ideal conditions for AI development.
Part of a European Network
The EU is expected to co-fund the project as part of its larger push for digital autonomy. Thirteen similar AI factories are already planned across countries like France, Germany, and Bulgaria. These facilities will serve as regional “nodes” to advance AI use in sectors like climate, space, and healthcare.
If the grant is approved this autumn, Groningen will join this elite network, further strengthening its role as a national and European AI hotspot.