Bulgaria Explores Possibility of Building a Gigafactory for Artificial Intelligence

Prime Minister Rosen Zhelyazkov, Deputy Prime Minister Tomislav Donchev, and Deputy Minister of Innovation and Growth Martin Danovski on October 3 held talks with representatives of IBM regarding the potential construction of an AI gigafactory in Bulgaria.

“We are exploring the possibility of building a gigafactory for artificial intelligence in partnership with IBM and the European Commission. We will make every effort to realise this project, as attracting high-tech investment is a government priority,” Prime Minister Zhelyazkov said during the meeting.

Representatives from IBM included Bina Halman, Vice President of Technology Lifecycle Services, along with other senior executives and experts.

The discussions focused on Bulgaria potentially hosting one of the first AI gigafactories in Europe, supported by the European Commission. The project envisages infrastructure equipped with over 100,000 advanced GPU chips, requiring at least 70 MW of power in the initial phase, with total energy demand possibly reaching 500 MW.

“This initiative has the potential to position Bulgaria among Europe’s leading technology hubs and to create favourable conditions for innovation, research, and the digital economy,” emphasised Prime Minister Zhelyazkov.

The project could be implemented through a public-private partnership, with the European Commission potentially investing up to 17% of capital expenditure, and member states contributing an equal or greater share. The gigafactory would require 50–200 hectares of flat land with the potential for future expansion.

“The government will assist in identifying a suitable site with the necessary infrastructure — optical highways, access to the electricity transmission network, water supply for cooling, and transport connectivity,” Zhelyazkov added.

The European Commission anticipates the first AI gigafactories to become operational between 2027 and 2028. IBM was discussed as a potential strategic technological partner, providing expertise and solutions for building and maintaining the infrastructure.

“The European Commission’s ‘European AI Gigafactories’ initiative offers Bulgaria an opportunity to establish itself as an active partner in developing AI-based technology infrastructure. The country has a strong IT sector, qualified personnel, and existing capacity, including the emerging AI factory BRAIN++,” noted Deputy Prime Minister and Minister of Innovation and Growth Tomislav Donchev.

Donchev added that preparing a competitive project proposal requires partnership with a global leader in data centres and AI infrastructure. During the meeting, IBM’s technological advantage in quantum technologies was highlighted as a potential contribution to expanding Bulgaria’s AI capabilities.

IBM is a leading global company in artificial intelligence, cloud technologies, and cybersecurity, with over 2,000 employees in Bulgaria and the status of one of the largest American investors in the country. A partnership with IBM would provide technological and expert capacity, international legitimacy, and compliance with European and national regulatory frameworks.