The sheer magnitude of 500 billion dollars is staggering – a dazzling welcome gift from Big Tech for the new US President. The gesture is seen as an immediate response to the administration's announced deregulation initiatives. Aimed at removing perceived barriers to innovation in emerging technologies, these initiatives signal to investors that betting on the future in the US now carries reduced risks. Among these ventures is a newly announced joint project for building data centres, addressing a critical gap in Big Tech's AI revolution. This ambitious plan underscores the need for an infrastructure ecosystem extending far beyond merely expanding high-capacity server facilities, making it appealing to investors across various asset segments.

While those involved in the project with the illustrious name „Stargate“ are now beating the drum for investment in the US – although it remains unclear for the time being where the total sum of half a trillion dollars will ultimately come from – an allocation of capital to Europe may be even more interesting for investors.

Since the density of data centres in Europe is significantly lower than in the US, the demand for computing capacity to support AI applications is also soaring. Notably, tech giants like Microsoft, Google, and Amazon have announced that they have substantial needs. Alongside their own investments in data centres, these firms are positioning themselves as reliable, deep-pocketed customers.

In addition, important connection infrastructure , without which no data centre can operate, namely fibre optics and energy supply, is undoubtedly still characterised by bottlenecks in Europe. However, the challenges in the US are likely to be no less severe. The expansion of fibre-optic networks is still in its infancy there, and looks like a century project, given the vast area to be covered. Power generation and distribution also suffer from significant shortcomings. By contrast, Europe has made notable strides in renewable energy production and storage technologies. These advancements make infrastructure investments in the AI value chain in Germany and Europe potentially less risky and, therefore, more attractive to investors compared to the US.