Europe doesn’t need more data centers for AI, SAP CEO says - Bloomberg

Published 03/07/2025, 18:24
© Reuters.

Investing.com -- SAP CEO Christian Klein has pushed back against the notion that Europe needs additional data centers to compete in artificial intelligence, directly challenging Nvidia CEO Jensen Huang’s recent European advocacy.

"Is it really that we need to build five data centers and put great chips in there? Is this what Europe needs? I doubt it," Klein said Thursday during a media call from SAP SE’s (ETR:SAPG) headquarters reported on by Bloomberg.

Klein argued that large language models are becoming commoditized despite their heavy energy and computing demands. He pointed to Chinese company DeepSeek as an example, noting it had created an open-source model that outperformed leading US AI developers at a much lower cost.

Instead of matching infrastructure investments, the SAP chief executive suggested European industries such as automotive and chemicals should concentrate on practical AI applications to enhance their business operations.

Europe currently lags behind the United States in AI infrastructure development. American tech companies have announced the "Stargate" plan with potential investments reaching $500 billion, while the European Union has committed just €20 billion ($23 billion) for five AI "gigafactories."

During his June European tour, Huang claimed the region’s AI development was being held back by insufficient computing power. He announced partnerships aimed at strengthening Europe’s AI infrastructure using thousands of Nvidia (NASDAQ:NVDA) chips.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.