AI startup Groq expands into Europe with data center in Helsinki

Published: 2025-07-08 05:01:09 ET EQIX

Published on 07/08/2025 at 05:01

Key takeaways

AI semiconductor startup Groq, backed by Samsung and Cisco, is expanding internationally with its first European data center in Helsinki, Finland. In partnership with Equinix, this move responds to the growing demand for AI services in Europe, particularly in the Nordic countries, which are known for their access to renewable energy and a cool climate.

Competitive advantage

Groq aims to stand out in the competitive AI inference market, where Nvidia dominates the field with its GPUs. Groq designs language processing units (LPUs) specifically for inference, where live data is interpreted using pre-trained AI models, similar to chatbots.

CEO Jonathan Ross highlights Groq’s advantages over competitors like Nvidia. He points to Groq’s use of more readily available components compared to Nvidia’s reliance on expensive high-bandwidth memory and limited suppliers. According to Ross, this approach enables Groq to handle the high volumes and low margins of inference, while others may focus on training, which yields higher margins.

Partnership and flexibility

Ross also emphasized Groq’s flexibility, noting the rapid rollout of the Helsinki data center, which began four weeks ago and is already operational. According to Ross, this speed contrasts with typical market timelines.

The partnership with Equinix aligns with the European policy focus on “sovereign AI” by keeping data centers in the region and enabling faster service. Equinix’s interconnected cloud infrastructure facilitates multi-vendor access for companies, allowing them to leverage Groq’s inference capabilities via Equinix.

Groq’s technology is already present in the US, Canada, and Saudi Arabia.