AI Chip Startup Groq Launches Inaugural European Data Center

Published: 10 Jul 2025

Author: Precedence Research

Share :

Groq, an AI semiconductor startup, has responded to the growing demand for artificial intelligence (AI) services and products globally by establishing its first data center in Europe. This move will help the company grow exponentially in the European region as well. It's essential to recall that last month, Nvidia CEO Jensen Huang visited Europe to explore business expansion opportunities in the region and scale up production by collaborating with regional players.

Groq is similarly looking to leverage the advent of AI, owing to the increasing demand for and waves of AI services, as well as the investments of various U.S. firms in the same region. Groq is backed by investments from leading global players, including Cisco and Samsung. Their data center will be established in Helsinki, Finland by partnering with Equinix. The Nordics is the most popular location in the area due to its easy access to renewable energy in cooler climates. The Nvidia CEO also signed several deals, along with establishing a data center, during their recent visit to Europe for official expansion.

Groq is valued at USD 2.8 billion, and it designs a chip known as a language processing unit. Instead of training AI models, it works on inferencing methods. Inferencing refers to a term where live data is interpreted by pre-trained AI models and yields specific results based on this working pattern. It resembles the answers given by chatbots nowadays. 

While Nvidia is unarguably a leader in chip and GPU production, some emerging start-ups are also looking to capitalize on the AI surge by offering inference pattern chips. Companies like SambaNova, Ampere, Cerebras, and others are all eyeing participation in the AI inference race. Furthermore, politics in Europe have turned the concept of Sovereign AI on its head, which means a nation has an undeniable hold on its own AI products and services. It also suggests that data centers should be located near users to increase their service speed. 

Groq currently has its own data centers in the U.S., Canada, and Saudi Arabia. Equinix is a global data center builder that connects various cloud providers, such as AWS and Google Cloud, to help businesses access multiple vendors simultaneously. Equinix is planning to install Groq’s LPU, which will enable businesses to leverage Groq’s inference offerings through the Equinix data center platform.