- European infrastructure stocks surge 23% in 2025, eclipsing US tech performance, driven by AI’s massive power consumption.
- Geopolitical shifts and AI energy needs boost European infrastructure, though liquidity and regulation present potential hurdles.
Shares in companies providing essential energy and data infrastructure are outperforming traditional technology stocks. A curated selection of European firms, including Siemens Energy, National Grid, and Prysmian, has achieved higher percentage gains in 2025 than prominent U.S. tech corporations.
This group has collectively advanced 23%, a rise that eclipses the 12% return of the Stoxx Europe 600 Index and the performance of the Nasdaq 100. The Stoxx 600 Technology Index, by contrast, has grown just 6.7%.
This trend is fueled by the substantial electricity demands of advanced AI systems. Helen Jewell from BlackRock remarked that Europe’s AI story centers on power infrastructure and grid stability rather than software. Siemens Energy AG embodies this shift, with its stock price climbing 111%.
A fund manager at Ninety One described the company as mission-critical for channeling power to data centers. Prysmian SpA, a manufacturer of cables for electricity and data transmission, has seen its shares rise 41%.
Legrand SA, a French electrical equipment producer, has enjoyed a 52% stock increase. Data centers now contribute about 20% of its total revenue. Telecom operator Orange SA is expanding its portfolio of AI-ready data centers beyond the 70 it currently operates. Nokia Oyj, a key supplier of network switches, is deeply embedded in this infrastructure build-out. Morgan Stanley analysts project the company could add €300M to its 2026 revenue from this segment.
A geopolitical preference for European suppliers provides a tailwind for these industrial markets. Nonetheless, investors face hurdles like limited stock liquidity and potential regulatory actions concerning AI’s energy consumption. Nvidia is concurrently establishing new technology centers across Europe.
