Blab AI
France Faces Decision on Low-Carbon Power for AI Data Centres
In a quiet meeting over croissants, France’s future as an AI powerhouse hung in the balance. At a G7 working lunch on AI on 17 June, Arthur Mensch, chief executive of Mistral AI, used the country’s surplus nuclear power as a strategic asset to argue that cheap, low‑carbon electricity should be reserved for domestic AI firms.
Mensch warned that AI training and operation consume vast amounts of electricity and that France’s nuclear fleet offers a stable, low‑cost supply. He cautioned that selling that power to American companies could let them resell AI services at much higher prices.
The lunch’s audience included French President Emmanuel Macron, European Commission President Ursula von der Leyen, and CEOs of Anthropic and OpenAI.
The urgency of the issue is reflected in the scale of demand. SoftBank announced at the Choose France summit in late May that it plans to build a supercomputer in northern France that could draw between 3 and 5 gigawatts. For comparison, the total capacity currently allocated to all data centres in France is under 1 gigawatt. France’s 2025 AI Summit, promoted under Macron’s slogan “Plug, baby, plug!”, attracted pledges of €109 billion, largely from foreign investors.
In response, EDF, the state‑owned utility, is selling surplus power and offering land for data‑centre projects. In its first allocations, EDF awarded three of four contracts to French firms—Eclairion, Mistral, and OpCore—while the fourth is expected to go to SoftBank. Nicolas Dufourcq of Bpifrance said he could see a 20 percent reserve of capacity for European players.
Mistral’s own ambitions illustrate the tension. The company is building an “AI Campus” with investors such as the Emirati fund MGX, Nvidia, and Bpifrance, committing €30‑to‑€50 billion. Yet the campus remains heavily financed by foreign capital.
Opponents of a restrictive policy argue that data‑centres bring broader economic benefits. Hélène Macela, vice‑president at Schneider Electric, said a data‑centre is “an ultra‑digitalised factory” that supports construction, installation, and supply‑chain jobs. Schneider plans to build a factory adjacent to SoftBank’s site, suggesting that hosting foreign projects in France can still generate local employment.
Guillaume Basset, deputy chief executive of Business France, echoed a pragmatic view, noting that “when the train passes, it won’t come by twice.” He added that foreign firms often concentrate investment in a single country, making it costly to turn them away.
The debate has entered the 2027 presidential campaign, with several candidates supporting preferential access for European firms. The broader European context is similar; governments across the continent are weighing how to convert energy and grid capacity into an AI advantage.
At present, France has not decided who will plug into its low‑cost, low‑carbon grid. The country’s nuclear‑powered electricity remains a potential competitive edge, but the choice between fostering domestic AI growth and attracting foreign investment remains unresolved.
The outcome will shape not only France’s AI ecosystem but also the broader European stance on energy‑driven AI development. The next months will see further policy proposals, investment decisions, and possibly new agreements that could tip the balance between sovereign advantage and global collaboration.
Mensch warned that AI training and operation consume vast amounts of electricity and that France’s nuclear fleet offers a stable, low‑cost supply. He cautioned that selling that power to American companies could let them resell AI services at much higher prices.
The lunch’s audience included French President Emmanuel Macron, European Commission President Ursula von der Leyen, and CEOs of Anthropic and OpenAI.
The urgency of the issue is reflected in the scale of demand. SoftBank announced at the Choose France summit in late May that it plans to build a supercomputer in northern France that could draw between 3 and 5 gigawatts. For comparison, the total capacity currently allocated to all data centres in France is under 1 gigawatt. France’s 2025 AI Summit, promoted under Macron’s slogan “Plug, baby, plug!”, attracted pledges of €109 billion, largely from foreign investors.
In response, EDF, the state‑owned utility, is selling surplus power and offering land for data‑centre projects. In its first allocations, EDF awarded three of four contracts to French firms—Eclairion, Mistral, and OpCore—while the fourth is expected to go to SoftBank. Nicolas Dufourcq of Bpifrance said he could see a 20 percent reserve of capacity for European players.
Mistral’s own ambitions illustrate the tension. The company is building an “AI Campus” with investors such as the Emirati fund MGX, Nvidia, and Bpifrance, committing €30‑to‑€50 billion. Yet the campus remains heavily financed by foreign capital.
Opponents of a restrictive policy argue that data‑centres bring broader economic benefits. Hélène Macela, vice‑president at Schneider Electric, said a data‑centre is “an ultra‑digitalised factory” that supports construction, installation, and supply‑chain jobs. Schneider plans to build a factory adjacent to SoftBank’s site, suggesting that hosting foreign projects in France can still generate local employment.
Guillaume Basset, deputy chief executive of Business France, echoed a pragmatic view, noting that “when the train passes, it won’t come by twice.” He added that foreign firms often concentrate investment in a single country, making it costly to turn them away.
The debate has entered the 2027 presidential campaign, with several candidates supporting preferential access for European firms. The broader European context is similar; governments across the continent are weighing how to convert energy and grid capacity into an AI advantage.
At present, France has not decided who will plug into its low‑cost, low‑carbon grid. The country’s nuclear‑powered electricity remains a potential competitive edge, but the choice between fostering domestic AI growth and attracting foreign investment remains unresolved.
The outcome will shape not only France’s AI ecosystem but also the broader European stance on energy‑driven AI development. The next months will see further policy proposals, investment decisions, and possibly new agreements that could tip the balance between sovereign advantage and global collaboration.
