Nokia CEO Justin Hotard says customers would build AI data centers twice as fast if not for shortages of memory chips and power capacity. He made the remarks during an October 5, 2026 CNBC podcast, pointing to supply constraints rather than weak demand as the real bottleneck.
Customers would be building AI data centers "2x faster" if supply constraints weren't in the way, Nokia CEO Justin Hotard said. He made the comment during a CNBC podcast on October 5, 2026.
Hotard's point was straightforward: demand for AI infrastructure is there, but the parts and the power are not. He pinned the bottleneck on two specific shortages — memory chips and energy and power capacity.
Nokia's own numbers back the demand story
Nokia's results support the picture Hotard described. In the second quarter of 2026, net sales in the company's AI and cloud business reached €446 million, doubling compared with the same period a year earlier.
The segment accounted for 9.3% of total group sales. Nokia also booked €2.8 billion in new AI and cloud orders during the quarter, and the company expects half of those orders to convert to revenue within the next year.
How Hotard got here
Hotard took over as Nokia's chief executive in 2025. Before that, he led Intel's Data Center & AI Group. Under his leadership, Nokia has pushed to strengthen its networking capabilities for AI infrastructure, partnering with Nvidia and investing in optical manufacturing to build out its data center networking offerings.
What it means for the AI buildout
The setup cuts two ways for Nokia. A strong order book and a segment that doubled year over year point to real momentum in its AI and cloud business. At the same time, Nokia's own customers are being slowed by shortages outside the company's control.
That makes conversion of the €2.8 billion order backlog worth tracking, since Nokia expects half of it to turn into revenue over the next year.
Source: Crypto Briefing
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