High energy costs block Europe AI race — NRG-IA

The technological gap widens — Europe loses ground to the US and China The European Union is losing the AI race due to soaring energy costs, according to an analysis published by OilPrice. While the United States and China rapidly expand their computational capacities, European technology developers face electricity tariffs that severely hinder their commercial competitiveness. Advanced artificial intelligence (AI) models require massive, uninterrupted baseload power, a resource that has become prohibitively expensive across the European continent. The structural gap is widening rapidly to the detriment of European firms. According to OilPrice, the United States benefits from a major competitive advantage due to its vast domestic natural gas resources and the boom in liquefied natural gas (LNG) exports. Although massive US LNG exports have helped temper European energy prices, they have kept US domestic costs significantly lower, providing Silicon Valley tech giants with cheap power…