Europe losing global battle for AI development due to high electricity costs

Europe is losing the global battle for artificial intelligence development. High electricity costs are creating obstacles to training large-scale neural networks, according to experts at the Interface think tank.

As a result, Ireland has already imposed a moratorium on the construction of new data centers until 2028, while the Netherlands and Frankfurt, Germany, have de facto banned new connections until at least 2030.

OpenAI, a major market player, has already officially suspended its flagship data center project in the UK and frozen investments in Norway. Sky-high electricity prices and regulatory uncertainty are cited as the reasons.

Experts warn that without urgent energy subsidies for the AI sector and accelerated deployment of small nuclear reactors, Europe risks becoming a permanent "digital colony" of Silicon Valley tech giants.