European telecom groups are transforming into data centre builders as part of a push for tech sovereignty. In the UK, BT is partnering with Nvidia and Nscale to build up to 14 megawatts of AI infrastructure across three existing sites. France’s Orange, alongside private equity firm Morrison, is investing €3 billion to increase its data centre capacity tenfold, while Iliad has also earmarked €3 billion for similar projects.
This shift differs from past telecom missteps, such as overpaying for 3G licences, as Europe seeks to reduce reliance on US hyperscalers like Google and Amazon. Deutsche Telekom is marketing services "made for Germany, made in Germany" to address data sovereignty concerns. With domestic builders avoiding the risk of data being handed to the US administration, telecom groups tightly regulate critical infrastructure.
Polaris Market Research forecasts the European sovereign cloud market will be worth $70 billion next year, offering growth amid a fracturing global landscape. Canada’s decision to build its own sovereign broadband backbone, rather than route data through the US, highlights allies’ anxiety. These domestic companies stand to benefit from a tech-adjacent future in a divided world.
Source: Financial Times Companies · Summarized by HeadlinesBriefing