Stay Ahead of the Curve
Latest AI news, expert analysis, bold opinions, and key trends — delivered to your inbox.
Europe risks falling behind US, China on AI data centre build-up, Nokia CEO says
3 min read Nokia CEO warns that Europe risks falling behind the U.S. and China in AI because it is not building enough data centres fast enough. While other regions are rapidly scaling AI infrastructure, Europe is held back by energy limits, regulation, and slow development of new facilities — putting its long-term competitiveness in the AI race at risk. April 23, 2026 11:16
Nokia CEO Justin Hotard is sounding the alarm: Europe risks falling behind the U.S. and China in the AI race — not because of weak innovation, but because it’s failing to build enough data centre infrastructure.
Despite efforts like EU-backed AI “gigafactories,” Europe still lacks the power capacity, connectivity, and investment speed needed to scale AI systems. Meanwhile, the U.S. and China are pouring billions into hyperscale data centres — the backbone of modern AI.
The bottlenecks are clear: strict regulations, energy constraints, and slow grid approvals are delaying expansion. In some cases, even major players like Amazon have struggled to secure power connections for new data centres in Europe.
Why it matters:
AI dominance is no longer just about models — it’s about compute power.
Without enough data centres, Europe risks:
- Losing startups and enterprises to regions with better infrastructure
- Falling behind in AI deployment (not just research)
- Becoming dependent on U.S. and Chinese AI ecosystems
And here’s the real tension: data centres already consume around 3% of Europe’s electricity, a number expected to surge as AI demand explodes.
Hot take:
Europe isn’t losing the AI race on intelligence — it’s losing it on electricity, speed, and scale. And in the AI era, that’s what actually decides who wins.
AI Agents