Big Tech's AI ambitions pose a major power test for Europe

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. Bloomberg | Bloomberg | Getty Images SoftBank' s plan to invest 75 billion euros in building AI infrastructure in France underscored the nation's status as a leading hub, but Big Tech's lofty energy demands will put the wider continent's grid to the test, analysts say. Japan's SoftBank on Saturday announced plans to build 3.1 GW of AI data centers in the northern Hauts-de-France region, including new sites in Dunkirk, Bosquel and Bouchain, by 2031. With over 60% of its power needs met by nuclear power, France is particularly well-placed to manage such an energy-intensive project at a time when Europe is grappling with some of the highest industrial electricity prices among major economies. This is a key advantage as power-hungry data centers make investments particularly sensitive to energy costs, pushing companies toward parts of Europe with lower power costs, experts previously told CNBC. Prices for energy-intensive industries in Europe last year were on average roughly double those in the U.S. and 50% higher than in China and India, according to the International Energy Agency. …