France has been determined to rob Spain of its position as a data center power in Europe
The French country has hit the table in its ambition to become a technological benchmark in Europe. He agreement reached between Emmanuel Macron and Masayoshi Son (CEO of SoftBank) aims to deploy up to 5 GW of computing capacity for AI data centers in northern France. This movement competes with all the projects that are underway in Spain, one of the countries that until now had attracted the greatest interest from hyperscalers. The problem is that neither France nor Spain will gain much from these initiatives. Nuclear counterattack. France has taken advantage your energy network —with a clear prominence of its nuclear power plants— to attract AI supercomputing projects. The SoftBank project will start in the Hauts-de-France region with an initial phase of 45 billion euros to build data centers in regions such as Dunkirk. In this first phase we want to achieve that the total capacity rise to 3.1 GW in 2031followed by a second phase that could reach 5 GW. Spain, data center paradise. Faced with this French movement, Spain has been closing agreements in that same area for months. It totals more than 22,000 million euros in recently announced projects. Giants like AWS (15.7 billion in Aragon), Microsoft (more than 7,000 million) and Blackstone have chosen our country to create these data centers. The Spanish advantage is its renewable energy productionwhich has attracted that type of investment. The harsh reality: Europe (probably) loses. Although both this announcement and those made in Spain are very striking, the reality for the Old Continent is quite stark. The data centers in Spain are not Spanish, and those in France are not French either. Europe is becoming the powerhouse for foreign multinationals that invest here because it suits them strategically. Energy resources are great for Microsoft, Amazon, Meta or Softbank, but the real benefit of this computing does not remain in Europe. The accounts. There is a clear difference between the strategies of Spain and France. Spanish soil is filled with hyperscalers like AWS or Microsoft that build, operate their own clouds and then control the flow completely. In the case of France, the initiative depends on a Japanese conglomerate allied with sovereign funds from the Middle East. SoftBank operates here more like a real estate developer– Create the data center and then rent it to third parties. Source: FT. Sovereignty, little. Emmanuel Macron and Pedro Sánchez can sell the message that these projects promote this ambition to have sovereign AI. The problem is that these data centers are simply delegations of big technology companies taking advantage of the advantages offered by their European partners. There may be options in the French project for the country to boost its AI companies —Mistral is the clear example—, but the truth is that these movements do little to help this objective of avoiding the independence of foreign technology companies. Rather they make the situation worse. The other European rivals. Europe’s traditional technology markets, grouped under the acronym FLAP-D (Frankfurt, London, Amsterdam, Paris and Dublin) are giving way to projects in other countries like France or Spain. There are also other protagonists in this new map of decentralized infrastructures: the Nordic countries are also interesting for their cold climates, ideal for helping to cool these centers. The real bottleneck. Beyond the billions of euros that are on the table, the big battle in the coming years will be access to hardware components, especially now that the memory crisis has made everything significantly more expensive. Demand far exceeds supply and it does not seem that this imbalance will be resolved soon, so all of these initiatives could suffer delays and changes in their final costs. In Xataka | Mistral does not generate hype, it is a discreet AI, it does not boost the shares of any company, but it already makes more money than Grok