AI Industry Press Releases

Battleground in the AI Race Shifts From Chips to Power

MRKT 3.0

June 22, 2026

As data centres become increasingly critical in the quest for AI supremacy, access to affordable and reliable power needed to support them has emerged as a key competitive advantage
Europe’s soaring energy prices currently place it at a disadvantage, with data centre projects likely to migrate to parts of the continent with lower power costs
While governments across Europe are turning to nuclear power as a strategic priority to address this, France’s leading position in nuclear energy gives it a major competitive advantage

According to Partners at global law firm White & Case, the latest battleground in the quest for AI supremacy is power, with energy infrastructure becoming increasingly intertwined with AI infrastructure.

As countries race to build the infrastructure needed to support AI, access to affordable and reliable electricity is emerging as a critical competitive advantage. While much of the focus has been on semiconductors and computing power, the vast energy demands of AI data centres mean that the cost and availability of electricity are increasingly shaping investment decisions.

Europe’s high energy prices could hinder its quest to become a global AI superpower and compete more effectively with the US and China. Indeed, prices for energy-intensive industries in Europe last year were on average roughly double those in the US and 50% higher than in China and India, according to the International Energy Agency.

Experts warn that data centre projects are likely to migrate to parts of Europe with lower power costs, creating winners and losers across the continent. To address this, governments across the continent are turning to nuclear power as a strategic priority, reversing longstanding positions. Belgium, Switzerland and Italy have announced plans to reverse historic bans, while Finland and Sweden are pursuing an ambitious nuclear power strategy, and the UK is streamlining regulation to accelerate nuclear projects.

France, meanwhile, enjoys a significant competitive advantage due to its established nuclear power sector, which accounts for roughly 70% of the country’s electricity. At the start of 2026, the French government confirmed that it would build six new EPR nuclear reactors as part of its new energy roadmap.

It comes as investors continue to pour vast amounts of capital globally into data centres, with data from Dealogic showing that investors poured $58bn in financing for 42 data centre transactions so far this year, up from $34bn for 34 deals at the same point in 2025. There are nearly 850 data centres under construction globally worth some $7tn, according to consultancy Oxford Economics. The US and China are out in front, with 228 and 98 projects under way respectively.

Simon Stuttaford, Partner in the Project Development and Finance Group and Global Energy Industry Group at global law firm White & Case, commented:

“As countries continue to compete for leadership in the AI race, data centres have become pivotal strategic assets. At the heart of this is access to affordable and reliable electricity, and investors are increasingly gravitating towards jurisdictions that can provide this. We can expect European governments to continue prioritising the expansion of nuclear generation capacity as it becomes a defining factor in determining which countries attract the next wave of AI investment.”

Ximena Vásquez-Maignan, Counsel in the Project Development and Finance Group and Global Energy Industry Group at global law firm White & Case, commented:

“The AI boom is creating a compelling new investment case for nuclear energy. Nuclear power remains one of the few technologies capable of delivering the reliable, low-carbon baseload power needed to support large-scale AI infrastructure. As governments and investors recognise that energy availability could become a constraint on future AI growth, we expect to see increased investment, financing and M&A activity across the European nuclear value chain.”