European Commission approves AI gigafactory joint venture in Spain

The European Commission has authorized a joint venture between ACS, Telefónica, Banco Santander, and SEPI Digital to compete for a European AI gigafactory project. This approval allows the consortium to present a multi-site candidacy featuring locations in Móra la Nova (Tarragona) and San Fernando de Henares (Madrid).

The Spanish government, through the Ministry for Digital Transformation and the Civil Service, previously authorized a €719 million investment via SEPI Digital to support this strategic initiative. The private investors—ACS, Telefónica, and Banco Santander—each hold a 15.67% stake, collectively controlling 47% of the capital, with SEPI Digital completing the shareholding.

The decision effectively eliminates León as a potential candidate for the project, despite local arguments regarding the city's existing technological infrastructure, such as the National Cybersecurity Institute (Incibe) and the Castilla y León Supercomputing Center (Scayle). The project aims to strengthen European technological sovereignty against competition from the United States and China.