Mistral AI Invests €1.2B in Swedish Data Centers to Boost European Tech Sovereignty

French AI developer Mistral AI has announced a €1.2 billion ($1.4 billion) investment to build new data centers in Sweden, marking its first infrastructure expansion outside France. The facilities will be located in Borlänge and developed in partnership with Swedish data center provider EcoDataCenter.

The new sites are scheduled to open in 2027, supporting the company’s next-generation AI models with advanced computing infrastructure.

The move follows Mistral’s €1.7 billion funding round in September 2025, which brought Dutch semiconductor equipment maker ASML on board as a key investor, contributing €1.3 billion for an 11% stake. The round valued the company at €11.7 billion.

Mistral described the investment as “a major step toward Europe’s technological independence” and “a completely European AI solution”, positioning the expansion as part of its broader ambition to reduce reliance on U.S. technology providers.

Founded in April 2023 by former Meta and Google researchers, Mistral has rapidly emerged as Europe’s leading AI challenger to U.S. giants such as OpenAI and Anthropic, focusing primarily on enterprise clients rather than consumer chatbots.

Chief Executive Arthur Mensch stated that the company expects revenue to exceed €1 billion this year, reflecting substantial growth from its previous position. Annualized revenue reportedly climbed from $20 million to over $400 million, supported by a growing enterprise customer base of more than 100 organizations.

EcoDataCenter will design, build, and operate the facilities, which will be fully powered by decarbonized energy. The Borlänge project represents one of Sweden’s largest AI infrastructure investments to date and aligns with Mistral’s broader commitment to building AI infrastructure within Europe.