TL;DR

  • AI is changing the economics of global connectivity, increasing demand for high-capacity fibre networks, distributed infrastructure, and new service models.
  • Greater collaboration among carriers, data centre operators, and cloud providers is becoming essential to supporting AI workloads.
  • Power availability, permitting delays and community opposition remain significant obstacles to Europe’s digital infrastructure expansion.
  • Network automation, infrastructure investment, and resilience are increasingly important to long-term growth.

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The telecommunications industry is facing a fundamental shift in how networks are built, operated, and monetized. Artificial intelligence (AI) is creating new infrastructure demands, while power limitations, investment pressures, and evolving customer expectations are challenging traditional business models.

These issues shaped discussions at Capacity Europe 2026, held October 12–15 in London. Bringing together leaders from telecommunications, cloud computing, data centers, and digital infrastructure investment, the event explored how the industry can translate growing demand for connectivity into sustainable business opportunities.

AI Is Changing What Networks Need to Deliver

As AI workloads become increasingly distributed, network infrastructure must support more than traditional data transport. High-capacity fiber corridors, low-latency connectivity, and reliable interconnection between computing facilities are becoming essential components of AI deployment.

The implications of AI-generated internet traffic were among the topics explored during a keynote by Avijit Singh, Chief Strategy Officer at Colt Technology Services. His presentation examined the growing importance of autonomous networks and the capacity, security, and governance challenges associated with increasing machine-generated activity.

Beyond the technical requirements, discussions addressed the commercial opportunities associated with AI infrastructure. Service providers are evaluating how managed services, automation, and strategic partnerships can create additional value for customers rather than relying exclusively on connectivity capacity.

Fiber Investment Faces New Economic Realities

Europe’s fiber market is entering a period in which network utilization, financial performance, and long-term asset value are receiving greater attention. While demand for connectivity continues to increase, operators and investors must balance expansion with the practical economics of deploying and maintaining infrastructure.

The development of fiber corridors capable of supporting AI training, inference, and edge computing was examined by industry leaders including Marisa Trisolino, CEO of euNetworks. The discussion addressed network design, dark fiber strategies, and investment decisions as providers prepare for increasingly demanding workloads.

Financial considerations were equally important as Europe’s fiber market matures. A panel examining the changing valuation of fiber assets included Thibault Contat Desfontaines, Co-Head of Infrastructure Equity, Europe at UBS Asset Management alongside other infrastructure and investment executives. The focus on long-term value reflected an environment in which network reach alone is no longer sufficient to establish a competitive advantage.

Infrastructure Convergence Creates New Opportunities

The traditional boundaries separating telecommunications networks, data centers, and cloud platforms are becoming less distinct. Supporting AI applications requires greater coordination across these infrastructure segments, particularly as workloads move between centralized computing environments, and distributed locations.

Opportunities for greater collaboration were explored in discussions involving carriers, colocation providers, and technology companies. Among the participants was Paula Cogan, Managing Director, EMEA at Digital Realty who joined a panel examining shared infrastructure models, strategic partnerships, and the convergence of Europe’s digital infrastructure ecosystem.

This convergence also raises questions about ownership, investment responsibility, and revenue generation. Partnerships between carriers, colocation providers, internet exchanges, and cloud companies could help address capacity constraints while improving service delivery.

Power, Permitting and Resilience Remain Critical Challenges

Despite strong demand for digital infrastructure, Europe’s ability to expand depends on factors extending well beyond network technology. Electricity availability, grid access, permitting requirements, and community acceptance continue to influence where projects can be developed and how quickly they can proceed.

The relationship between power availability and data centre expansion was explored during a panel that included David Adkins, Head of Network Architecture and Innovation at National Grid. The discussion examined grid access, on-site generation, and renewable energy strategies as potential approaches to supporting infrastructure growth.

Infrastructure resilience also received attention as geopolitical uncertainty, physical threats, and cybersecurity risks increase the importance of protecting critical connectivity assets. Discussions emphasized route diversity, subsea cable security, and stronger coordination between governments and network operators.

These challenges reinforce the need to consider energy, security, regulatory requirements, and community engagement early in infrastructure planning rather than treating them as separate issues after investment decisions have been made.

Building a More Connected and Sustainable Future

Capacity Europe 2026 highlighted how the industry’s next phase of growth will depend on more than increasing network capacity. Commercial innovation, strategic investment, infrastructure collaboration, and operational resilience will all influence how successfully providers respond to AI-driven demand.

Continue exploring the technologies, investment strategies, and partnerships shaping global connectivity at Capacity Europe 2027, taking place October 19–21, 2027 in London.