The race to build artificial intelligence (AI) infrastructures in Europe isn’t as feverish as it is in the United States, but the land rush is getting there.

In rapid succession, OpenAI and others in recent weeks have either opened or announced new multibillion-dollar facilities on the continent.

Meta Platforms Inc., Amazon.com Inc., Alphabet Inc.’s Google, and Microsoft Corp. collectively are projected to spend $320 billion on AI infrastructure in Europe this year, with Meta raising its guidance to $64 billion to $72 billion, Microsoft planning $80 billion, and Amazon expecting more than $75 billion. NVIDIA Corp. is establishing 20 AI factories across Europe, including five gigafactory-scale operations.

Europe’s AI infrastructure buildout is gaining momentum, with tech companies announcing billions in new data center investments across the continent in recent weeks, though the expansion still lags behind the frenzied pace in the United States.

OpenAI revealed plans for its first European AI data center in Norway as part of the Stargate Norway project. The announcement comes as the company participates in a massive $500 billion infrastructure initiative in the U.S.

In Stockholm, investment firm Brookfield unveiled what could become one of Europe’s largest AI infrastructure projects — a data center complex with a potential $10 billion price tag and 750 megawatts of IT capacity. Launched in June 2025, the project is expected to take 10 to 15 years to complete.

AI chip startup Groq has also entered the European market, opening its first continental data center in Helsinki.

The private sector push illustrates the European Commission’s ambitious AI Continent Action Plan, which aims to establish AI gigafactories housing approximately 100,000 next-generation chips and triple the EU’s data center capacity within five to seven years.

Nineteen sites across Europe have been selected to host AI Factories. The Commission announced seven initial locations in December 2024 — Finland, Germany, Greece, Italy, Luxembourg, Spain, and Sweden — and approved six additional facilities in October 2025, including sites in the Czech Republic and Lithuania.

Investment data shows Europe’s data center sector surging, with a 168% year-over-year increase. London, Paris, and Frankfurt have emerged as leading hubs. Major cloud providers are committing substantial capital: Amazon Web Services is investing about $10.5 billion in UK facilities, Microsoft has plowed $17.4 billion in France, and Amazon is spending €15.7 billion for broader European expansions.

Power availability remains the critical bottleneck. European countries must balance AI’s substantial energy requirements against the continent’s stringent sustainability regulations as the infrastructure race intensifies.

Europe Struggles to Balance AI Ambitions with Energy Crisis, Climate Goals

There is one significant rub in Europe, as there is in the U.S.: Securing enough power to fuel the technology’s voracious energy appetite while adhering to stringent environmental regulations.

The continent’s electricity costs present an immediate obstacle. In the second half of 2024, commercial power prices averaged about 50 cents per kilowatt-hour — roughly double rates in the United States. Despite substantial investments from American tech giants and European governments, the region accounts for just 4% of global AI computing capacity, though the market is expanding rapidly.

The proliferation of data centers needed to support AI operations has intensified concerns about water scarcity across Europe. Projects are being proposed in regions already experiencing high water stress, creating friction with local communities.

In Aragon, Spain, a Microsoft data center project has sparked conflict between agricultural interests and environmental advocates. Meanwhile, the small village of Culham in Oxfordshire has been designated Britain’s first AI growth zone, raising fears among residents about additional strain on already limited water supplies.

A February study projects European data center electricity consumption could surge by up to 160% by 2030, reaching 287 terawatt-hours—exceeding Spain’s total 2022 electricity consumption. The research estimates new facilities could collectively emit 121 million tons of CO2-equivalent over the next six years, representing half of Germany’s planned emission reductions across all sectors through 2030.

Individual countries face particularly acute challenges. In Ireland, data centers are expected to account for 30% of electricity demand by 2030, with growth outstripping the procurement of renewable energy to power them. Some facilities are connecting to the gas network to circumvent power grid constraints.

Germany saw data centers consume nearly 4% of national electricity demand in 2024, with significant increases anticipated. The expansion is placing particular stress on regional grids in Hesse and Berlin-Brandenburg.

The European Union has introduced new regulations requiring data center operators to report energy consumption, water usage, and other environmental metrics. However, questions persist about whether the rapid pace of AI infrastructure development can be reconciled with Europe’s ambitious climate commitments.

The continent finds itself navigating a familiar dilemma also confronting the United States: how to capture the economic benefits of artificial intelligence without compromising environmental sustainability targets.