AI data centers would be built '2x faster' without shortages
Nokia's CEO Justin Hotard suggests that the tech industry's AI infrastructure buildout is still in its early stages, noting that growth is currently limited by supply chain constraints rather than a lack of demand. Despite debates over the pace of data center construction, Nokia continues to benefit from its role as a key provider of networking equipment for AI infrastructure.
Why it matters
The article highlights the massive capital expenditure cycle in AI infrastructure and provides a counter-narrative to concerns about an AI bubble by pointing to physical supply bottlenecks.
The tech industry would build data centers twice as fast without the supply constraints they face, the CEO of Nokia told CNBC, underscoring continued demand for AI even as top executives debate slowing down the pace of development.
"I don't think you can say in any manner we're overbuilding today because reality is that if we could build 2x faster, our customers could build 2x faster, they probably would," Justin Hotard told CNBC's "The Tech Download" podcast.
"So that gives me confidence that we're still in the early days" of the AI buildout, Hotard added.
Shortages of key memory chips and energy are among the supply constraints facing the sector.
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