AI At The Center Of Investment Plans And Digital Sovereignty

By: Jesse Jarvis CEO Kaiko

The AI industry remains at the center of government interest and vision of digital sovereignty. In this regard, the European Union has unveiled a EUR 20 billion initiative to support the establishment of AI gigafactories across the continent. The objective is to strengthen the bloc’s digital infrastructure, reduce external reliance and encourage the use of business applications in key sectors.

To date, 76 proposals have been submitted, involving large companies, data centre operators and investment funds, a clear sign of the industry’s readiness for growth. The wide range of proposals highlights the potential for AI to be applied in areas such as retail, telecoms and cloud computing, and the appeal of the European funding model in accelerating the growth of regional digital ecosystems.

This trend is not limited to Europe. In the US, the President is expected to announce details on a USD 70 billion plan targeting AI and energy. The announcement could drive more impetus in the industry and strengthen its momentum.

In the UAE, significant initiatives in AI are underway, including the Stargate UAE project data center, which would see the construction of a data center comprising 100,000 advanced Nvidia chips. The first part of the project could come online in 2026, increasing the AI capacity of the nation and boosting the AI ecosystem locally.

The strong interest among governments is signalling a global acceleration in technological adoption. These initiatives could help increase the capabilities of AI and help drive investment in new developments, such as emotional intelligence in AI. The latter could help increase the adoption of AI and widen its field of use.