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Demand stays strong in AI investment

Investment appetite on the data center side does not appear to be slowing, despite supply problems. Justin Hotard told CNBC he does not agree with the view that the sector is currently building too much capacity, adding that customers could bring new capacity online much faster if current constraints were removed.

According to Hotard, that suggests AI infrastructure expansion is still in its early stages. While debate continues among senior executives over the pace of AI investment, Nokia is signaling that demand remains healthy.

Which constraints are slowing deployment?

The main obstacles Hotard pointed to are centered on hardware supply and access to power. In particular, the following issues stand out in AI-focused data center projects:

  • A shortage of essential memory chips
  • Insufficient energy supply to support new capacity

Hotard said customers could build data centers "twice as fast" if the right conditions were in place. That assessment suggests the sector’s core problem is not weakening demand, but physical and operational bottlenecks that are stretching out deployment timelines.

Nokia’s AI infrastructure role has drawn investor interest

Where does the company fit in?

Nokia provides connectivity technology that links chip racks inside data centers, along with infrastructure solutions that connect data centers across different locations. That position makes the company one of the key players in the AI boom: not a chip maker, but a supplier that benefits from infrastructure spending.

The market has also reflected that shift. Nokia shares have risen by about 130% over the past year. That performance suggests investors are pricing in expectations that the company will capture a larger share of AI infrastructure spending.

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