Europe’s Next AI Powerhouse Will Turn Heat Into City Energy

Europe is preparing a new supercomputer built to push its AI ambitions into a higher gear. Bull has been chosen to supply LUMI-AI, a €387.8m ($450m) system that aims to multiply Europe’s AI capacity by ten and nearly double the high-performance computing capabilities of the existing LUMI supercomputer.
The machine will be installed at CSC’s data centre in Kajaani, Finland, with deployment scheduled for the second half of 2027. Its design reaches beyond raw computing power: warm water will cool the system, captured heat will flow into Kajaani’s district heating network, and the facility will run entirely on renewable electricity.
A Major Expansion For Europe’s AI Infrastructure
EuroHPC JU and the LUMI AI Factory consortium are splitting the project’s investment equally, creating a shared foundation for one of Europe’s most ambitious AI and high-performance computing systems. Ownership of LUMI-AI will remain with EuroHPC JU, the funding entity behind the new supercomputer.
The LUMI AI Factory consortium includes partners from Finland, Estonia, Czechia, Norway, Denmark, and Poland. Together, these participants are backing infrastructure designed to serve Europe’s AI capacity while strengthening the computing resources available for high-performance workloads.
Anders Jensen, EuroHPC JU executive director, described the procurement as a major milestone: “With LUMI-AI, EuroHPC JU has now signed its sixth AI Factory procurement contract for a next-generation AI-optimised supercomputer.”
That sixth contract places LUMI-AI inside a wider effort to build advanced AI computing capacity across Europe. The target is clear: a tenfold boost for AI capacity and nearly twice the high-performance computing capability delivered by LUMI.
AMD Power Meets Bull’s Liquid Cooling
LUMI-AI will use the BullSequana XH3500 architecture, combining next-generation AMD Instinct MI430X GPUs with 6th Gen AMD EPYC 256-core processors. This hardware platform will give the system the processing foundation required for AI-optimised supercomputing.
Bull’s Direct Liquid Cooling system will sit at the centre of the deployment. The system uses warm water to cool the supercomputer and captures excess heat instead of allowing it to go unused, sending that heat into Kajaani’s district heating network.
That approach connects supercomputing with the surrounding community’s energy needs. The facility is also being constructed with high environmental standards and will operate entirely on renewable electricity, linking the project’s computing goals with a clear focus on energy use.
Emmanuel Le Roux, Bull CEO, said: “With Bull’s patented water-cooling technologies and high-performance interconnect (BXI), this new project further confirms the strength of Bull’s technological leadership and latest innovations.”
A Full Technology Stack For Kajaani
Bull will not deliver the system alone. IBM will provide storage solutions, while Nokia will support data centre networking alongside Bull’s BXI interconnect, bringing together computing, storage, and communication technologies in one supercomputer deployment.
- Architecture: BullSequana XH3500
- Accelerators: Next-generation AMD Instinct MI430X GPUs
- Processors: 6th Gen AMD EPYC 256-core processors
- Cooling: Bull’s Direct Liquid Cooling system using warm water
- Storage: IBM technology
- Networking: Nokia support alongside Bull’s BXI interconnect
- Location: CSC’s data centre in Kajaani, Finland
- Deployment: Scheduled for the second half of 2027
The project’s most striking feature may be the way its infrastructure connects digital performance with local energy use. Excess heat from the supercomputer will feed Kajaani’s district heating network, turning a by-product of AI computing into a resource for the city.
LUMI-AI now has a defined supplier, funding structure, location, architecture, and deployment window. When the system arrives in the second half of 2027, it will target a tenfold increase in Europe’s AI capacity while nearly doubling the high-performance computing power of the existing LUMI supercomputer.
That combination gives the project a powerful role in Europe’s technology plans: more processing power for AI, a larger platform for high-performance computing, and an energy design that puts captured heat back to work. Kajaani is set to become the home of a new computing engine built for Europe’s next phase of AI.
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