The call for massive, coordinated investment in AI infrastructure across Europe is more than just a economic strategy; it’s a geopolitical necessity. The stark reality is that Europe is sandwiched between the U.S. and China, both of which are aggressively staking their claims in the AI race. Without decisive action, Europe risks becoming a technological colony, dependent on foreign powers for its digital future.
The economic transformation AI promises is profound. By 2030, AI and large language models (LLMs) will permeate every sector, from industry and services to healthcare and education. Access to sufficient computing power will be as vital as access to electricity is today. Yet, Europe currently holds a mere 4% of the world’s AI computing power, dwarfed by the U.S. at 70%. This disparity is not just about numbers; it’s about economic sovereignty and competitiveness.
The slowdown in European productivity since 2000 is a worrying sign. Without its own AI infrastructure, Europe could miss out on the massive productivity gains AI offers. The U.S. has already shown what’s possible; its productivity has grown twice as fast as Europe’s in the same period. The risk of strategic dependence is real and pressing.
The scalability of AI models has significant hardware and energy implications. While the cost of training an AI model decreases over time due to hardware and algorithmic improvements, the overall cost is still rising. Major tech companies are investing heavily, with data center and computing power expenditures exceeding $100 billion in 2024. Europe needs to keep pace.
To secure its digital future, Europe must set ambitious targets. Aiming for 16% of global AI computing power by 2030 is a start, but it requires significant investment—up to 700 billion euros. This means leveraging the EU’s collective borrowing capacity, encouraging private investment, creating dedicated AI funds, and harmonizing R&D tax credits.
Regulatory simplification is also crucial. Currently, it takes up to five years to set up a data center in France due to bureaucratic hurdles. Streamlining these processes is essential. France can lead by example, using its decarbonized nuclear power as an asset for AI growth, but only if priority access and controlled connection prices are ensured.
The implications for markets are profound. AI infrastructure will become as integral to economic interactions as electricity or the internet. This transformation will touch every sector, from healthcare and education to manufacturing and construction. SMEs will rely on AI assistants for various processes, while specialized models will optimize production lines and detect anomalies. Even traditional trades like plumbing and electrical work will see AI integration.
The announcement by OpenAI and its partners of a $500 billion private investment in the U.S. underscores the economic value of AI. This is not about prestige; it’s about power. Europe must act decisively to secure its place in the AI-driven economy of the future. The transformation brought by large language models will automate and augment routine cognitive tasks, revolutionizing every aspect of business and industry.
Investing in AI infrastructure is not just about economic competitiveness; it’s about securing Europe’s technological sovereignty. The future economy will be structurally transformed by AI, and Europe must be at the forefront of this revolution. The stakes are high, and the time to act is now.
