Czech Republic Submits Bid to Host €3.5 Billion AI Gigafactory Near Prague

Prague Old town square Czech Republic 

Czechia has officially submitted a bid to host one of Europe’s first AI Gigafactories—a large-scale data center designed to support artificial intelligence development—on the outskirts of Prague. The proposed site is located in the municipality of Jíloviště, just south of the capital, and the project is estimated to cost 90 billion CZK (approximately €3.5 billion).

The application was submitted by the Ministry of Industry and Trade to the European Commission on Friday, June 20, as part of a broader EU initiative to establish five AI-focused gigafactories across Europe.

Strategic Location & Infrastructure

The Zbraslav–Jíloviště area was chosen due to its strong energy infrastructure. According to Deputy Minister Jan Kavalírek, the site—owned by České Radiokomunikace (CRA)—already has access to 26 megawatts of power, with plans to scale that up to 77 megawatts in a later phase. This would be sufficient to operate around 100,000 high-performance AI chips.

Once operational, the facility would provide computing power for commercial clients, EU-funded programs, and Czech research institutions.

Czechia’s Competitive Edge

While several countries—including Germany, Denmark, Poland, and Romania—are also preparing bids, Czech officials believe they have an advantage: project readiness.

“CRA already has the necessary documentation and is ready to begin construction pending approval,” said Kavalírek.

The EU is expected to announce the selected host countries by the end of 2025. If Czechia is chosen, construction could begin soon afterward, with the data center expected to be fully operational by late 2028.

Backed by CRA and the EU

The proposal centers on land owned by CRA, a major telecom and infrastructure company that had previously planned a smaller data center—Prague Gateway DC—on the same site. CRA is now serving as a co-investor in the AI gigafactory project and would take on future operational responsibilities if the plan is approved.

“We’ve already developed Prague Gateway DC, one of the most advanced and largest data centers in the region,” said CRA spokesperson Anna Tůmová. “That’s why CRA is naturally involved in this AI gigafactory initiative.”

The European Commission has allocated nearly €20 billion (about 500 billion CZK) for the initiative as part of its strategic investment program in digital infrastructure.

Nshing Rooney is a writer by heart and a scientist by soul.