Finnish tech company DataCrunch Proposes EU's First Renewable-Powered AI Gigafactory in Latvia
Finnish tech company teams up with Latvia to challenge US and China’s dominance in artificial intelligence infrastructure
Text: Martti Asikainen, 19.8.2025 Photo: Adobe Stock Photos
A Finnish technology company has submitted an ambitious proposal to the European Commission for what could become the EU’s first fully renewable-powered artificial intelligence “gigafactory” in Latvia, marking Europe’s latest attempt to establish technological sovereignty in the rapidly expanding AI sector.
DataCrunch has partnered with the Republic of Latvia and international investors to present plans for a large-scale AI data centre that would be powered entirely by renewable energy sources.
The proposed facility represents a strategic move by smaller European nations to position themselves at the forefront of the continent’s digital transformation, as the EU seeks to reduce its dependence on American and Chinese technology giants.
The AI gigafactory would serve as a computing platform designed to support artificial intelligence workloads across Europe whilst being fully powered by renewable energy.
The project aligns with Latvia’s digital transformation goals and the EU’s broader strategy to strengthen artificial intelligence capabilities across the continent whilst adhering to stringent environmental standards.
Economic impact and job creation
If approved, the facility is expected to create up to 300 highly skilled jobs, representing a significant boost to Latvia’s technology sector. The project would also provide substantial digital resources to startups, small and medium-sized enterprises, and research institutions across Latvia and the broader European Union.
Accordint to the Director of Latvia’s Investment and Development Agency (LIAA), Ieva Jāgere, the project’s potential to demonstrate the country’s reliability as a partner in crucial technological initiatives.
“Such developments enhance the country’s digital economy and increase its appeal for investments that add significant value,” she said.
Acting State Secretary of Latvia’s Ministry of Economics, Raivis Bremšmits, noted that the project would position Latvia as a key hub within Europe’s AI ecosystem, improving digital infrastructure and fostering innovation.
DataCrunch’s proposal comes as European policymakers increasingly emphasise the need for technological independence and strengthened AI capabilities within the bloc.
The proposal comes as European policymakers increasingly emphasise the need for technological independence from American tech giants such as Amazon Web Services, Google Cloud, and Microsoft Azure, which currently dominate the global cloud computing market.
By establishing renewable-powered AI facilities within EU borders, European companies and institutions could potentially reduce costs, improve data security, and ensure compliance with the bloc’s strict data protection regulations.
Looking ahead
The project’s emphasis on renewable energy addresses growing concerns about the environmental impact of AI technologies, which require enormous amounts of computational power and electricity to operate effectively.
As artificial intelligence applications become increasingly central to everything from healthcare and finance to manufacturing and transportation, the ability to process AI workloads domestically using clean energy could provide European companies with significant competitive advantages.
The European Commission has not yet announced a timeline for evaluating the proposal, but the initiative represents one of the most significant attempts by smaller EU member states to establish themselves as leaders in the global AI infrastructure race.
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