The global AI race is moving fast. The United States has committed $500 billion to its Stargate initiative. China has demonstrated the disruptive potential of open-source AI with DeepSeek. And Europe, not to be left behind, has launched InvestAI, a €200 billion initiative that includes a $20 billion fund for gigafactories across the EU.

But for Tim Hysell, co-founder and strategic advisor at ZincFive, what matters is not just the scale of Europe’s ambition. It is the terms on which Europe has entered the race.

“Europe joined with a sustainability caveat,” Hysell says. “Unlike the US and China, it has underscored its commitment to environmentally responsible infrastructure even amidst fierce global competition. That is not a weakness, it is a differentiator.”

A blueprint for responsible AI development

The InvestAI initiative was announced at the AI Action Summit in Paris, and it arrives alongside a broader regulatory framework that includes the EU’s AI Act, designed to set global standards for responsible AI development. For Hysell, these two strands are inseparable.

Through InvestAI, Europe aims to democratise access to AI resources, enabling businesses of all sizes, not just tech giants, to leverage large-scale computing power for next-generation AI models.

Alongside that ambition sits the Energy Efficiency Directive, which mandates transparency in energy and water consumption, requires renewable energy adoption, and demands efficient cooling. Crucially, it requires AI developers to report on the energy efficiency of their models.

“By requiring AI developers to report on the energy efficiency of their models, the EU ensures AI progress aligns with sustainability goals,” Hysell says. “That kind of accountability is important.”

The energy challenge facing data centres

The pressure on infrastructure is real and growing. As AI workloads scale exponentially, data centres, already among the most energy-intensive facilities on the planet, are being asked to absorb an accelerating volume of compute demand as hyperscalers and enterprises expand their footprints.

For operators, the challenge is navigating high-density AI workloads against power and cooling constraints, while maintaining the reliability their customers require. One specific operational issue is the rapid spikes in power demand that occur as GPU clusters spin up, transients that place strain on both internal systems and the wider grid.

Hysell points to Line-Interactive UPS systems, utilising nickel-zinc battery technology, as one promising response. Unlike traditional offline or standby UPS solutions, these systems actively monitor and regulate power fluctuations. NiZn chemistry also delivers the fastest discharge response at high power, responding to fluctuations in under 100 milliseconds, making it well-suited to the demands of AI infrastructure.

AI as both challenge and solution

There is, however, a more optimistic dimension to the energy story. AI is not only driving demand, but it is also being deployed to manage it.

Predictive analytics are being used to optimise the integration of solar and wind power, balancing supply and demand in real time. Machine learning models can anticipate grid fluctuations and allocate stored energy more effectively, reducing reliance on fossil fuels. AI-powered automation is extending battery lifecycles and improving the efficiency of energy storage systems overall.

“AI is playing a transformative role in optimising energy systems,” Hysell says. InvestAI is funding AI-driven energy management solutions specifically to support the EU’s climate goals, embedding that feedback loop into the initiative’s design from the outset.

The case for NiZn in gigafactories

As Europe invests in gigafactories, the question of which energy storage technologies are fit for purpose becomes increasingly consequential. Hysell makes a clear case for NiZn.

ZincFive’s NiZn technology offers a lifetime greenhouse gas footprint 25 to 50 per cent lower than lead-acid or lithium-ion alternatives, a figure validated by third-party analysis. Its operating life is up to three times longer than lead-acid batteries, reducing both waste and replacement frequency. And it is fully recyclable, a characteristic that sits comfortably within the EU’s sustainability framework.

For gigafactories operating at scale, those attributes translate directly. NiZn can replace traditional backup power sources with faster response times and reduced maintenance requirements. And for AI-specific infrastructure, its ability to mitigate rapid power demand surges makes it a practical tool for both grid stability and operational resilience.

A standard worth following

Hysell is candid about the challenges ahead. Ensuring that regulatory oversight does not stifle innovation remains an open question, and the complexity facing operators is not trivial. But his overall assessment of Europe’s position is clear.

“By fostering collaboration and investing in energy-efficient data centres and alternative sustainable energy storage solutions, the EU is setting a new standard for how AI and sustainability can coexist,” he says.

Whether the rest of the world chooses to follow that standard or compete against it may prove to be one of the defining questions of the decade.

RELATED STORIES

The impact of delaying the EU AI Act

Tech giants join 100+ companies signing voluntary EU AI Pact