Soaring Energy Costs Accelerate Europe’s AI Investment Flight to US

Europe’s AI competitiveness took a fresh hit on May 19 as surging power and gas prices compounded earlier capital migration pressures. The May 18 report showed U.S. investors capturing 83% of global AI venture funding, pulling top startups and talent across the Atlantic despite Europe’s deep talent pool. New data now reveal EU wholesale electricity averaged $95/MWh in 2025—double U.S. levels—while TTF gas prices rose 9% and a 20% LNG disruption triggered further spikes. Grid delays of up to ten years and 12% higher capacity costs in FLAPD markets are steering developers toward faster U.S. and Chinese sites, signaling sustained headwinds for Europe 50 constituents tied to data-center and AI infrastructure growth.