ENAI & Automation

Nine countries backed the Prague Declaration: what Czechia’s AI Gigafactory bid means for Asian suppliers

Nine Central and Eastern European countries have agreed to coordinate AI policy and computing infrastructure. Czechia’s AI Gigafactory bid remains unselected, but it gives Asian AI, cloud and hardware suppliers a concrete reason to map the market now.

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Predrag Pavič

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Czechia has not won an AI Gigafactory. It has, however, moved from an individual infrastructure proposal to a nine-country regional AI agenda. For Asian suppliers, that makes early market mapping more useful than waiting for a final construction contract.

On 3 September 2026, nine Central and Eastern European countries adopted the Prague Declaration on Artificial Intelligence at the CEE AI Summit in Prague. The Czech Ministry of Industry and Trade says the countries agreed to coordinate AI policy, connect key computing infrastructure and share practice across the region.

The declaration matters because Czechia is already preparing an AI Gigafactory bid through the AI Gigafactory CZ project, involving České Radiokomunikace (CRA) and the IT4Innovations supercomputing centre. The proposed project is part of a European competition, not a confirmed investment. The Czech government supported participation in June, and the outcome of the European selection process is expected later in 2026.

That distinction is essential. A serious market-entry decision should not be based on a political declaration alone. But a coordinated regional plan, an identified Czech project and an active data-centre development pipeline are enough to justify practical preparation by companies that sell AI infrastructure, hardware, cooling, integration or specialist services.

What the Prague Declaration changes

The declaration does not allocate GPUs, approve a building permit or guarantee public funding. It is a working agreement among Czechia, Slovakia, Poland, Croatia, Hungary, Lithuania, Latvia, Slovenia and Romania.

Its practical importance is that it gives the region a shared position in a European market where AI computing is increasingly shaped by access to power, capital, chips, data-centre capacity and public procurement. For smaller national markets, coordination can make a difference: one country may host capacity, another may bring research users, and several may form part of the commercial demand base.

For foreign suppliers, this makes Central Europe more relevant as a connected operating area rather than nine isolated sales territories. A company evaluating Czechia should still validate customers and projects country by country. It should also recognise that the potential addressable market may include cross-border research, industrial and public-sector workloads.

The Czech AI Gigafactory is a bid, not a completed facility

The Czech government has described the AI Gigafactory CZ proposal as a potential large-capacity infrastructure for training and deploying advanced AI systems. Government material identifies Prague Gateway near Prague as a possible location and refers to a project involving CRA and IT4Innovations.

Several steps remain open:

QuestionCurrent positionWhat a supplier should verify
Has Czechia been selected?No final European selection has been announced.The result, consortium structure and contractual model.
Is the budget fully committed?No. Public and private financing remains subject to the project and European process.Who is financing which layer: land, power, building, hardware and operations.
Is capacity operating?No Gigafactory capacity is operating under this proposal.Construction, grid connection, commissioning and procurement milestones.
Can any supplier participate?No open commercial route has been announced through the declaration itself.Named procurement, partner requirements and local qualification criteria.

This is not a reason to dismiss the development. It is a reason to describe it accurately. The commercial work starts before the final decision: suppliers build relationships, validate local service capacity, understand procurement rules and identify where they fit in the operating model.

Why this is relevant to Asian AI and hardware companies

AI infrastructure is not a single product category. A Gigafactory-scale project can create demand for accelerators, servers, storage, networking, power systems, cooling, security, software orchestration, construction, testing and long-term operations. The relevant entry point depends on what a company can actually deliver in Europe.

For Taiwanese, Korean, Japanese and other international companies, Czechia may be relevant under different conditions:

Operating roleWhat Czechia could offerFirst practical question
AI hardware or server supplierA potential European deployment market and a Central European manufacturing base.Can you support integration, qualification and service locally?
Cooling, power or data-centre equipment supplierProjects with high-density compute need power, thermal management and resilient operations.Which specification, certification and delivery capability will a project require?
Cloud or model platformA possible regional demand base for sovereign and regulated AI workloads.Which customers need your service, and what data, identity and procurement conditions apply?
Engineering or systems integratorCross-border infrastructure needs deployment and operational support.Do you have a Czech partner, local engineers and a credible support model?

The useful response is not to open an office simply because a Gigafactory has been discussed. It is to define the European function first. A supplier of liquid cooling may need technical partner mapping and reference sites. A server manufacturer may need a service and spare-parts model. A cloud company may need to clarify data governance, customer procurement and in-region operations.

Prague Gateway is related, but it is not the Gigafactory

The recent 15 MW AI-capacity reservation at Prague Gateway is a separate commercial development. It is relevant because it shows that high-density AI infrastructure can be planned in Czechia before any Gigafactory decision is made.

The two developments should not be merged into a single claim. Prague Gateway has a named capacity reservation and its own construction, contracting and commissioning milestones. The AI Gigafactory bid has a separate European selection process and potential consortium model. Both point in the same strategic direction, but they carry different levels of certainty.

For market-entry planning, this distinction is useful. A company does not need to wait for the Gigafactory result to map Czech data-centre operators, engineering partners, semiconductor links and relevant customers. At the same time, it should not build a revenue forecast around capacity that has not yet been contracted or commissioned.

A proportionate way to engage now

Companies interested in the opportunity can take measured steps before committing capital:

  1. Define the exact AI-infrastructure function you want to sell in Central Europe.
  2. Map Czech operators, research institutions, hardware integrators and target customers.
  3. Check whether Czechia or a neighbouring market provides the best location for your service, logistics or engineering function.
  4. Validate power, cooling, technical certification and local staffing requirements early.
  5. Follow the European selection process and public procurement announcements rather than relying on generic AI-market headlines.
  6. Build a phased entry plan that works even if the Gigafactory timetable changes.

The main conclusion

The Prague Declaration does not make Czechia an AI-infrastructure winner overnight. It does show that the country is helping to organise a regional response to a European infrastructure race, while continuing to prepare a concrete Gigafactory proposal.

For Asian suppliers, the opportunity is therefore real but conditional. The practical work is to identify a specific role in the value chain, validate customers and partners, and follow the milestones that turn a proposal into procurement and operational capacity. Companies that wait for a fully completed project may enter too late; companies that treat a political announcement as a guaranteed order may enter for the wrong reasons.

How Kodo can help

Kodo helps international AI, cloud and industrial-technology companies prepare the commercial and operational side of entering Czechia. We support early market validation, partner mapping, local positioning, English and Czech communication, web content and coordination of the first implementation steps.

For legal, tax, regulatory, certification and investment-incentive matters, companies should work with qualified specialists and the responsible authorities.

Contact Kodo


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This article provides general market and infrastructure information, not legal, tax, regulatory or investment advice. Companies should verify requirements, procurement routes and project status for their specific products, customers and operating model.

Cover photo by Predrag.

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