Nokia CEO cites chip and energy shortages slowing AI data center growth

Nokia CEO Justin Hotard stated that shortages in memory chips and energy capacity are preventing the construction of AI data centers from proceeding at maximum speed. Hotard noted that if supply constraints were removed, customers could build these facilities “2x faster.”

Despite these bottlenecks, demand for AI infrastructure remains high. Nokia reported that its AI and cloud business net sales reached €446 million in the second quarter of 2026, doubling compared to the previous year. The company has also secured €2.8 billion in new AI and cloud orders, with half expected to convert to revenue within the next year.

To meet this demand, Nokia is investing in its Optical and IP Networks business and has partnered with Nvidia to strengthen its networking capabilities for AI infrastructure. Projections suggest that U.S. investment in AI-related equipment, including power and chips, could reach $10.3 trillion between 2025 and 2032.