Nokia Warns Europe: The AI Gap With the US Is “Greater Than You Can Imagine”

Helsinki — Europe is falling dangerously behind the United States and China in artificial intelligence, and a top Nokia executive says the consequences could be far worse than people realize.

Mikko Hautala, Nokia’s Chief Social Affairs Officer, delivered the warning at a panel event in Helsinki organized by the European Commission. His message was blunt: the United States currently controls about 75% of global AI computing power, while Europe holds only 5%.

“If Europe does not get on this train, the consequences will be greater than you can imagine now,” Hautala said.

The 75–5 Divide

The numbers tell a stark story. The US dominates AI computing capacity by a margin of roughly 15 to 1 over Europe. China is also pulling far ahead, leaving the continent in a distant third place.

Hautala stressed that the problem is not just about money. It is about speed — how quickly Europe acts and where it directs its investment. He revealed that the word “speed” is now the most used word at Nokia’s headquarters.

“Europe must think about speed,” he said. “6G networks are coming in 3 to 4 years. Europe needs to start thinking about it now.”

A Missing Foundation

The real danger, according to Hautala, is what happens if Europe never builds its own AI foundation. If the AI construction phase does not happen in Europe at all, the continent will lack critical AI infrastructure — including energy systems, computing power, and networks.

“If the AI building phase does not happen in Europe at all, it means we will be missing critical AI infrastructure,” he warned.

Hautala also pointed out a paradox for Nokia itself: the company is strongly rooted in Europe, but its growth engine is now in the United States. This reflects a broader trend of European tech talent and business shifting across the Atlantic.

A Sovereign Satellite Bet

In response to these strategic threats, Nokia announced a major partnership with Finnish satellite company ICEYE to develop secure, sovereign satellite communications systems for governments and defense customers.

The system will use low Earth orbit (LEO) satellites to provide high-speed, low-latency broadband connectivity for defense, border security, emergency services, and disaster response. The first satellites are expected to launch in 2028.

Crucially, the technology and data will remain under European control. “I believe the partnership will create a European sovereign alternative for critical signals and mission-critical satellite connections,” Hautala said.

ICEYE will contribute its expertise in sovereign satellite missions, while Nokia will provide secure networking technology. The systems will be built on European technology, allowing countries to own and control the satellites, ground infrastructure, and user terminals.

The CEO’s Warning

Nokia CEO Justin Hotard has echoed Hautala’s concerns, warning that Europe lacks the infrastructure needed to build AI data centers and is not investing enough to keep businesses from moving to China and the United States.

“The issue today is Europe doesn’t have the infrastructure,” Hotard told Reuters. “We’ve seen the movie before. If you don’t build that infrastructure, then ultimately the business and the developers will move to where that is. The reality is right now, that’s in China and in the US for the large part.”

Hotard praised some EU moves, such as the establishment of AI gigafactories, but said the relative pace of investment is “not sure it’s enough”.

Data centers currently account for about 3% of EU electricity demand, but consumption is expected to rise rapidly because of AI. Amazon has said long delays in getting power grid connections are already challenging its data center expansion in Europe.

For Europe, the message from Nokia is clear: the AI train is leaving the station. The only question is whether the continent will be on board — or watch it disappear into the distance.