Promising AI Factory in Groningen Aims to Boost Regional and National Innovation
Proposed supercomputer aims to boost regional AI development, safeguard data privacy, and position the city as a leader in Europe’s AI ecosystem.
The Investment and Development Company Northern Netherlands (NOM) is exploring the possibility of establishing an AI Factory in Groningen, a move that could position the region as a leader in artificial intelligence development. This initiative, supported by the Dutch government and the European Commission, aims to create a supercomputer that allows educational institutions, government agencies, and businesses to develop AI applications securely and independently of foreign big tech platforms.
Why Groningen?
Groningen’s combination of knowledge institutions such as the University of Groningen (RUG), cutting-edge companies, and an accessible energy grid makes it a strong contender for hosting the AI Factory. The NOM highlights the potential for the region to leverage this factory to support projects like the Health Data Valley and bolster public data processors such as DUO and RDW. The presence of secure datasets and algorithms would also make Groningen an attractive location for companies prioritizing responsible AI development.
Anne-Wil Lucas of NOM emphasizes that a local AI Factory offers significant benefits, including secure data storage and the ability to train AI algorithms on reliable, locally stored data. This reduces reliance on large international tech companies such as Google and Microsoft and ensures data privacy and sovereignty, which is particularly crucial for sectors like healthcare and public research.
Economic and Technological Opportunities
An AI Factory in Groningen promises to drive innovation across sectors like healthcare, mobility, and energy transition. It would also provide the region with economic opportunities by attracting businesses focused on independent and secure AI development. Furthermore, the initiative addresses the brain drain of Dutch AI talent to American and Chinese platforms, creating a strong local ecosystem for innovation and research.
The NOM views the AI Factory as a “mini data centre” with additional functionalities, such as a knowledge centre to assist companies in developing responsible AI applications. This would align with Groningen’s ambitions to enhance its software and AI company cluster while promoting energy-efficient storage and computing power.
European and Regional Support
The European Commission has pledged to fund half the costs of the AI Factory, with the remaining half coming from national and regional governments. Discussions are underway with ministries and regional authorities to determine funding sources, including resources from the Nij Begun program, which has allocated €200 million over the next 30 years for regional development.
Next Steps
Before the final application is submitted to the European Commission in May 2025, NOM is assessing interest and support from local entrepreneurs, companies, and organizations. The government’s commitment, along with the European Commission's backing, makes Groningen a frontrunner for hosting this transformative facility. This could redefine the region’s role in AI innovation and secure its position as a key player in Europe’s AI landscape.