The government is to contribute €70 million towards building a major artificial intelligence hub in Groningen, joining forces with regional authorities that have already pledged €60 million.

If the European Commission agrees to invest a further €70 million later this year, construction on the so-called “AI Factory” could begin in 2026, caretaker economic affairs minister Vincent Karremans told MPs in a briefing.

The project, he said, is crucial for the Netherlands’ technological independence. “AI will fundamentally change our economy and society,” he told MPs. “But if you do not develop the technology yourself, you depend on others. That is why we are fully committed to a strong, Dutch AI infrastructure.”

The proposed centre will combine research expertise with practical facilities for companies, universities and government bodies to develop AI applications. It will also house a powerful supercomputer dedicated to training advanced artificial intelligence models.

Jakob Klompien, from the northern development agency Nij Begun, said news of the investment is “a fantastic opportunity that fits perfectly with our regional economic plans”.

Groningen has been lobbying behind the scenes for months to secure the centre, according to local broadcaster RTV Noord. The preferred site is a former Niemeyer tobacco factory in the city.

The northern provinces argue the location makes sense, pointing to available space, solid energy infrastructure, and a strong knowledge base via Groningen University and the University Medical Centre Groningen.