Backed by major investors including Samsung and Cisco, Groq is partnering with Equinix to establish the new facility in Helsinki, Finland. The move aims to capitalize on the growing demand for AI services across Europe.
The Nordic region has become a hotspot for data center development due to its abundant renewable energy and cooler climate, which help reduce operational costs. Just last month, Nvidia CEO Jensen Huang visited Europe and secured several infrastructure agreements, including new data centers.
Valued at $2.8 billion, Groq specializes in developing a unique chip known as a Language Processing Unit (LPU), which is optimized for AI inference—the phase where trained models process real-time data to generate outputs, such as chatbot responses. Unlike Nvidia’s GPUs, which dominate the training segment of AI, Groq is focused on the inference market, competing with startups like SambaNova, Ampere (currently being acquired by SoftBank), Cerebras, and Fractile.
The establishment of data centers within Europe also aligns with increasing pressure from EU policymakers to promote “sovereign AI”—ensuring that data infrastructure is hosted locally. Proximity to users also enhances performance and reduces latency.
By partnering with Equinix, a global interconnection platform that links major cloud providers like AWS and Google Cloud, Groq enables seamless access to its inference technology through the Equinix network.
Groq currently operates data centers in the U.S., Canada, and Saudi Arabia, with the new Helsinki site marking a significant milestone in its international growth.
Catch Groq CEO Jonathan Ross live on Squawk Box Europe at 7:45 a.m. London time.