Nokia CEO says data center construction could double without supply constraints
Nokia’s CEO, Justin Hotard, told CNBC that supply chain bottlenecks—particularly shortages of memory chips and energy—are slowing data center construction by half. He argued that if these constraints were lifted, demand for AI infrastructure would allow data centers to expand twice as fast, reinforcing his belief that AI deployment remains in early stages.
Key points
- Nokia CEO Justin Hotard claims supply constraints cut data center construction speed in half
- Memory chip and energy shortages are cited as key bottlenecks in AI infrastructure scaling
- Nokia’s stock rose 130% year-over-year as it expands into AI data center tech
Hotard’s comments highlight Nokia’s shift into AI infrastructure, supplying technology for chip racks and data center interconnects. The company’s stock has surged 130% over the past year, reflecting investor confidence. However, broader debates persist over whether AI’s rapid expansion is justified by sustained demand. Research projects $10.3 trillion in AI-related investments from 2025 to 2032, equating to 3.63% of U.S. GDP annually. Recent safety concerns, including warnings from Anthropic’s Dario Amodei, have fueled discussions about slowing advanced model development, though Hotard emphasized demand from existing models alone could drive significant progress.
Nokia CEO says data centers would be built '2x faster' without supply constraints
CNBC Technology · 5 October 2026
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