As the artificial intelligence boom propels global equities to record highs, European investors are turning their attention to industries critical for powering AI, including energy infrastructure, data centers, and telecoms. A custom basket of 10 European firms—including Siemens Energy AG, Orange SA, and Prysmian SpA—has climbed 23% this year, outperforming the 12% gain in the Stoxx Europe 600 Index and even rivaling the Nasdaq 100, Bloomberg data shows.
“It’s not as sexy to talk about infrastructure as it is to talk about some of the big US tech names,” said Helen Jewell, chief investment officer of EMEA fundamental equities at BlackRock. “But we are literally just at the beginning of it. Power infrastructure, grid stability, energy efficiency: that is the AI story in Europe, less on the software side.”
European tech stocks have lagged behind US peers, partly because their exposure to the Nvidia supply chain is limited. The Stoxx 600 Technology Index has risen only 6.7% this year, while AI infrastructure proxies like Siemens Energy have soared 111%. Fund managers say European industrials, including power generators and cable makers, are well-positioned to benefit from the surge in AI-related data center demand.
“It is absolutely mission critical in getting power from the grid to data centers,” said Ben Lambert, fund manager at Ninety One Plc, highlighting Siemens Energy’s central role. Despite strong gains, the company trades at a 60% discount in price-to-earnings ratio compared with US counterpart GE Vernova Inc.
Telecom and industrial equipment firms are also attracting investor attention. Prysmian SpA, an Italian cable maker, is up 41% this year, trading at 20 times forward earnings—well below chip-equipment maker ASML Holding NV. Legrand SA, a French maker of electrical equipment and data center infrastructure, has lifted its full-year sales guidance and gained 52% in 2025. France’s Orange SA, which operates over 70 data centers, is planning expansions to accommodate AI workloads.
Finland’s Nokia Oyj is another potential beneficiary, producing network switches for hyperscale data centers. Analysts say Nokia could see revenue rise by €300 million ($352 million) in 2026 if it continues to expand its AI-linked business. “It’s still a tangible play from the geopolitical standpoint, as Europeans will be hesitant to adopt Chinese or US switch makers,” said Xiadong Bao of Edmond de Rothschild Asset Management.
Despite the momentum, investors face risks including limited liquidity, stringent AI regulations, and the pace of government and private sector investments. Still, Bloomberg reports that European infrastructure stocks are likely in the early stages of a long-term trend, with Nvidia expanding AI technology centers across the UK, France, Spain, and Sweden.
“The AI world is a bit like the Cold War, where everybody wants to get to the moon,” Bao said. “But for us, especially European investors, it’s better to look at the AI race as a marathon, which means monetization will increase progressively.”
