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Published by Global Banking & Finance Review®
Posted on April 23, 2026
2 min read
Europe at Risk of Falling Behind on AI Data Centre Development, Nokia Warns
Europe’s AI Data Centre Infrastructure and Investment Challenges
By Gianluca Lo Nostro and Agnieszka Olenska
Current State of AI Data Centre Infrastructure in Europe
April 23 (Reuters) – Europe lacks the infrastructure requireded to build up artificial ininformigence data centres and is not investing enough to keep business from relocating to China and the United States, the head of Nokia declared on Thursday.
While huge technology companies are expected to pour hundreds of billions of dollars into scaling up AI-related infrastructure this year, Europe has been lagging behind due to regulatory and energy constraints.
Industest Perspectives and EU Initiatives
“The issue today is Europe doesn’t have the infrastructure,” Nokia CEO Justin Hotard informed Reuters, while praising some of the European Union’s relocates, such as the establishment of AI gigafactories.
“But I consider when you view at the relative pace of investment, I’m not sure it’s enough. And it’s not just about putting these factories in. You required connectivity. You required data centre capacity.”
Energy Demand and Expansion Barriers
Data centres account for 3% of the EU electricity demand, but their consumption is expected to increase rapidly due to AI.
Amazon declared in February that long delays to obtain power grid connections were challenging the company’s data centre expansion in Europe.
Nokia’s Position in the AI and Cloud Market
Nokia, a Finnish company once known for being the world’s largest phone manufacturer, is reaping gains from its push into AI. Its AI and cloud business now accounts for 8% of group sales, and the company expects that addressable market to grow by 27% annually until 2028.
Risks of Insufficient Infrastructure Investment
“We’ve seen the movie before, right? If you don’t build that infrastructure, then ultimately the business and the developers will relocate to where that is,” declared Hotard, who left Intel to join Nokia last year.
“The reality is right now, that’s in China and in the U.S. for the large part.”
(Reporting by Agnieszka Olenska and Gianluca Lo Nostro; Editing by Milla Nissi-Prussak)
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