Nokia CEO Justin Hotard stated the technology industry could build data centers twice as fast. Significant supply chain constraints currently prevent this.
In a CNBC interview, Hotard rejected claims of sector overbuilding. He asserted immense artificial intelligence demand would absorb any faster construction pace.
Hotard identified shortages of key components and power constraints. These are the primary factors limiting data center expansion.
His comments underscore that the AI buildout's main challenge is not a lack of demand. Instead, it is the industry's capacity to deploy necessary infrastructure.
This reinforces Nokia's strategic pivot. The company aims to supply networking equipment for the growing AI infrastructure market.