Nokia CEO Hotard Says AI Data Center Demand Would Double Without Supply Constraints

Nokia CEO Justin Hotard said the tech industry would build AI data centers at twice the current rate absent supply constraints, pushing back on concerns the sector is overbuilding. "If we could build 2x faster, our customers could build 2x faster, they probably would," Hotard told CNBC's "The Tech Download" podcast. Key memory chips and energy are in short supply, creating sector-wide bottlenecks, according to CNBC. Hotard said AI infrastructure demand remains early-stage and does not rely on new frontier models, noting deployment of existing technology could yield "tremendous progress" even without another model release in three years. Nokia supplies optical and IP networking gear connecting chip racks inside data centers and links between facilities. Nokia stock has risen about 130% over the past year. Research presented at the Brookings Papers on Economic Activity projects $10.3 trillion in AI data center, chip and infrastructure spending between 2025 and 2032, averaging 3.63% of U.S. GDP annually.