Poland signals progress on AI gigafactories and digital services tax

According to the Polish Press Agency, negotiations between the European Commission and EU member states on the development of AI gigafactories could conclude in June. The planned facilities are expected to be financed through the EU’s €20 billion InvestAI fund.

The initiative aims to establish five AI gigafactories across the EU to support the development of large-scale AI models and applications. Discussions intensified after revisions to the funding model required member states to commit financial support before the launch of a tender process limited to private companies and consortia.

Polish Deputy Minister of Digitisation Dariusz Standerski said Poland led a coalition of seven member states that opposed the revised framework and pushed for changes. He said negotiations are now close to a compromise that could strengthen the EU’s digital sovereignty and AI infrastructure ambitions.

Separately, Standerski said the Ministry of Digitisation is finalising proposals for a digital services tax of up to 3% on revenues generated by large technology companies operating in Poland. The draft legislation is expected to be published by early July in Poland.

Why does it matter?

The AI gigafactory initiative is a central component of the EU’s broader effort to strengthen its AI infrastructure and reduce dependence on non-European providers of computing capacity. Access to large-scale computing resources is increasingly viewed as a prerequisite for developing advanced AI models and competing in the global AI ecosystem.

The negotiations also highlight the governance challenges associated with large industrial policy initiatives. Questions around funding, public-private participation and member state involvement will shape how effectively the EU can translate its AI ambitions into operational infrastructure.

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