site.btaBulgaria Explores Possibility for Building AI Gigafactory

We are exploring the possibility for building an artificial intelligence gigafactory in partnership with IBM and the European Commission, said Prime Minister Rosen Zhelyazkov during a meeting with representatives of the American tech company IBM on Friday, quoted by the government’s information service.

"We will make every effort to implement this project, because attracting high-tech investments is a priority for the government," he added.

The meeting was also attended by Deputy Prime Minister Tomislav Donchev and Deputy Minister of Innovation and Growth Martin Danovski. Representing IBM were Bina Hallman, Vice President of Technology Lifecycle Services, along with other senior executives and experts.

The project envisions infrastructure equipped with over 100,000 advanced GPU chips. The initial phase will require at least 70 MW of power, and the total energy demand could reach up to 500 MW, the statement said.

The project could be implemented through a public-private partnership, with the European Commission potentially covering up to 17% of capital expenditures, and EU member states contributing an equal or larger share.

To build the gigafactory, a flat plot of land between 50 and 200 hectares will be needed, with potential for future expansion. According to Zhelyazkov, the government will assist in finding a suitable location with the necessary infrastructure — including fiber-optic connectivity, access to the power grid, water supply for cooling, and transportation accessibility.

The European Commission expects the first AI gigafactories to become operational between 2027 and 2028. During the meeting, the possibility of IBM becoming a strategic technology partner for the project was discussed. The company would provide expertise and solutions for the construction and maintenance of the infrastructure.

IBM is among the leading companies in this field. It is a global leader in artificial intelligence, cloud technologies, and cybersecurity. With over 2,000 employees in Bulgaria, IBM is one of the largest American investors in the country. A partnership with IBM would bring technological and expert capacity, international credibility, and compliance with both European and national regulatory frameworks, the statement notes.

In February this year, European Commission President Ursula von der Leyen announced the launch of an initiative to attract EUR 200 billion in investments in the field of artificial intelligence, including a new EUR 20 billion European fund specifically dedicated to AI-based gigafactories.