Cooling towers at the Dampierre-en-Burly nuclear power plant, operated by Electricite de France SA (EDF), in Dampierre-en-Burly, France, on Tuesday, May 3, 2022. EDF’s falling nuclear production, combined with Russia’s invasion of Ukraine, is exacerbating Europe’s energy crisis as France is traditionally a net exporter of electricity.
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SoftBank’s ambitious plan to invest 75 billion euros in developing artificial intelligence infrastructure in France highlights the nation’s emergence as a significant technology hub. However, the substantial energy demands of these advanced data centers are poised to place considerable strain on Europe’s existing power grids, according to industry analysts.
The Japanese conglomerate SoftBank announced plans to construct 3.1 gigawatts of AI data center capacity across the northern Hauts-de-France region by 2031, with new facilities slated for Dunkirk, Bosquel, and Bouchain.
With over 60% of its electricity generation derived from nuclear power, France is strategically positioned to support such an energy-intensive undertaking, particularly at a time when Europe is contending with some of the highest industrial electricity prices among major global economies.
This is a critical advantage, as power-intensive data centers are highly susceptible to energy costs, driving companies to seek locations in Europe with lower electricity rates, as previously reported by CNBC.
According to data from the International Energy Agency, industrial electricity prices in Europe last year were, on average, approximately double those in the United States and 50% higher than in China and India. This disparity underscores the competitive edge that nations with more affordable and stable energy sources, such as France, can offer.
Analysts have previously indicated to CNBC that there is a compelling case for elevating the role of nuclear power within European nations’ energy strategies to effectively manage the escalating demands of data centers. The inherent stability and low carbon emissions of nuclear energy make it an attractive option for powering the energy-hungry digital infrastructure of the future.
As of 2025, nuclear energy constituted only 11.8% of Europe’s total energy mix, while oil and gas combined still accounted for over a third of the energy supply, according to Eurostat data. This suggests a significant opportunity for nuclear power to expand its footprint and contribute more substantially to the continent’s energy security and decarbonization goals.
Data Center Operators Eyeing the Next Decade of Power Solutions
The advent of small modular reactors (SMRs) has garnered considerable attention from major technology firms in the United States. In 2024, Amazon announced a collaborative agreement with Dominion Energy, Virginia’s principal utility company, to explore the development of SMR technology. Google followed suit in 2025, entering into a partnership with Kairos Power and the Tennessee Valley Authority (TVA) for the deployment of a new nuclear facility.
These factory-built nuclear power plants are designed to be significantly smaller than traditional reactors, typically capable of generating 300 megawatts or less. This modular approach offers greater flexibility and scalability for power generation.
SMRs are generally engineered for mass production and are intended for expedited and more cost-effective installation at various sites compared to conventional reactors, which often require over a decade to become operational. An additional key benefit for data center providers is that SMRs do not necessitate grid connection to function, providing a degree of energy independence.
However, the widespread adoption of SMRs is not without its challenges, according to the energy team at the international law firm Baker McKenzie.
Data center operators are meticulously evaluating their power requirements for the next decade, recognizing that “ultimately that is the driving force behind whether they can operate or not,” Tania Arora, a partner in Baker McKenzie’s energy group, told CNBC in an interview. The ability to secure reliable and sufficient energy is paramount for the sustained operation and growth of these digital infrastructure hubs.
“Many of them are looking at nuclear SMRs, but it is a challenge. No data center operator, in my view, will take first-of-a-kind risk on SMRs, and there are none currently operational at the moment outside China and Russia.” Arora further elaborated, highlighting the current developmental stage of SMR technology and the inherent hesitations of large corporations to invest in unproven solutions, particularly in the high-stakes data center industry.
Beyond energy considerations, Europe’s allure for Big Tech investments is multifaceted. London’s deep and diverse talent pool represents another significant draw. The city’s established reputation as a global center for innovation and technology, coupled with its access to highly skilled professionals, makes it an attractive location for companies seeking to expand their AI research and development capabilities.
Several U.S.-based AI companies have recently announced significant expansion plans for their London operations. This includes Nvidia-backed Runway, which informed CNBC of its intention to establish London as its new European headquarters. The move underscores London’s growing importance as a nexus for AI development and deployment in Europe.
In parallel, prominent AI firms such as Anthropic, OpenAI, and Google have also disclosed plans to open new office spaces in London, further solidifying the city’s position as a leading destination for AI talent and investment.
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