French cloud computing company OVHcloud says it has substantial data-centre capacity available for new customers as it prepares to launch its first artificial intelligence model in early 2027. The announcement signals the company’s effort to expand its role in Europe’s AI market while using infrastructure it already has in place.
Chief Executive Officer Octave Klaba said OVHcloud has 250 megawatts (MW) of connected capacity, of which 140 MW is operating. The remaining 110 MW is available for new business, allowing the company to accommodate additional demand without immediately building more capacity.
AI Model Planned for Early 2027
Klaba said OVHcloud expects to introduce its first AI model in early 2027. The model will use a mixture-of-experts architecture, a design that directs different tasks to specialised components rather than requiring one model to handle every task in the same way.
The approach can help AI systems allocate computing resources to the parts of a model best suited to a particular request. The model’s final capabilities, performance and release details have not yet been fully disclosed.
OVHcloud has been developing its AI capabilities as European businesses and public institutions look for alternatives to services from major US and Chinese technology companies. The company’s move could give customers another option for AI tools hosted within Europe’s cloud infrastructure, although its competitive position will depend on the eventual model’s quality, cost and availability.
Workspace Product Expected Before the Model
Before the planned AI model launch, OVHcloud expects to release an initial pilot of OVHai Workspace, a productivity platform designed to work with workplace applications and the company’s internal data.
The product is intended to bring AI features into everyday work tasks, including applications such as email. The company has not yet provided a complete public timetable or detailed performance specifications for the pilot.
The two initiatives represent different parts of OVHcloud’s AI strategy: providing AI-powered workplace services and developing its own underlying models.
Available Capacity Could Help Meet Demand
The 110 MW of unused connected capacity may allow OVHcloud to take on new customers without waiting for additional data-centre construction. That could be an advantage as demand for cloud computing and AI infrastructure grows, since expanding data centres requires investment, power access, equipment and time.
However, available capacity alone does not establish how quickly the company can convert it into revenue. Customer demand, the type of computing hardware required and the cost of operating the infrastructure will also affect how much of that capacity is ultimately used.
Financial Results Provide Additional Context
OVHcloud reported revenue of €1.145 billion for the financial year ending August 2026, representing like-for-like growth of 7.2%. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 9.7% to €480.5 million.
The company also reported €24.7 million in levered free cash flow, compared with a €27 million outflow in the previous financial year. It said it had achieved its 2026 targets and expects revenue growth of more than 10% in fiscal 2027, alongside continued positive cash flow.
These results give the company a financial backdrop for its planned AI expansion, although developing competitive models and scaling AI services will still require investment.
CEO Questions Europe’s AI Infrastructure Strategy
Klaba also renewed his criticism of Europe’s approach to financing large-scale AI computing projects. He argued that arrangements involving both EU-level and national funding can encourage countries to pursue separate initiatives instead of building projects supported by a sufficiently large customer base.
His comments come amid European efforts to strengthen the region’s computing capacity and reduce reliance on foreign technology providers. The debate involves how public funding, private investment, electricity supply and customer demand should be balanced when developing expensive AI infrastructure.
OVHcloud’s next challenge will be to turn its available capacity and planned AI products into services that attract customers. The early-2027 model launch remains a target announced by the company, rather than a product already released.
