Mistral AI, France’s biggest AI company, and Swedish data centre firm EcoDataCenter have announced an investment of €1.2bn ($1.4bn) to establish an AI-focused data centre in Sweden.

Set to be located at EcoDataCenter’s site in Borlänge, it is expected to open in 2027 and marks Mistral’s expansion of its AI infrastructure outside of France.

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Mistral plans to implement large-scale AI computing resources at the Swedish facility, which will facilitate the development and operation of its future models.

This collaboration intends to create a comprehensive European AI system, integrating Mistral’s foundational models with EcoDataCenter’s sustainable infrastructure. It emphasises local data processing and storage within Europe.

“This investment is a concrete step toward building independent capabilities in Europe, dedicated to AI,” Mistral AI CEO and co-founder Arthur Mensch said.

“By delivering a fully vertical offer with locally processed and stored data, we are reinforcing Europe’s strategic autonomy and competitiveness. This lays the foundation for a European AI cloud that can serve industries, public institutions, and researchers at scale,” he added.

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EcoDataCenter is set to manage the design, construction, and operation of the new infrastructure, utilising renewable energy sources and advanced cooling technologies.

The Borlänge location was chosen for its scalability potential and is designed to accommodate the high demands of AI workloads. The centre will feature NVIDIA’s latest Vera Rubin GPUs, which will introduce advanced computing capabilities to the Swedish market.

EcoDataCenter CEO Peter Michelson said: “AI is critical infrastructure for Europe’s competitiveness, security and economic growth.

“Together with Mistral AI, we are building high-performance AI infrastructure on Swedish soil – with sustainability, resilience and European strategic autonomy at its core. This investment strengthens Sweden’s position as a leading hub for advanced AI and digital infrastructure in Europe.”

This initiative also forms part of broader efforts to enhance Europe’s autonomy in technology and fortify its position in the digital economy.