The energy consumption of Artificial Intelligence is growing faster than any other segment in the energy sector – and poses an enormous challenge for Europe. Although the European Union aims to catch up to the global AI top tier by 2030. With programs like InvestAI (200 billion Euros) and the AI Continent Action Plan, Brussels pursues the goal of tripling data center capacities within five to seven years. However, the real bottleneck is not hardware – but the power grid. Because Europe’s existing grid infrastructure is currently insufficiently prepared for this expansion – and this is precisely where it will be decided whether Europe achieves its AI goals.
Data Centers Are Driving Europe's Electricity Demand – And Rapidly So
According to EMBER, electricity demand from data centers in Europe is projected to rise to 236 terawatt-hours (TWh) by 2035 – which represents almost a tripling compared to 2024. This means they will even surpass e-mobility as the strongest source of growth in the electricity sector. Demand is growing particularly dynamically in Scandinavian countries such as Sweden, Denmark, and Norway, where consumption is expected to triple by 2030.
Traditional Data Center Hubs Are Reaching Their Limits
The established FLAP-D markets – Frankfurt, London, Amsterdam, Paris, and Dublin – are increasingly suffering from grid bottlenecks. In Dublin, for example, data centers already account for 80 % of electricity consumption, and new projects are de facto blocked there until 2028. In Frankfurt and the Netherlands, grid connections have also been effectively halted. The result: a relocation trend towards the south and north.
Grid-Ready Is the New Investment Criterion
According to EMBER, the data center market in countries with low grid congestion (e.g., Italy, Belgium, or the Nordics) is growing almost twice as fast as in FLAP-D cities. This shows: Time to grid connection has long been a decisive criterion for site selection – even more important than real estate costs or tax incentives.
Italy, for example, recorded data center projects in 2024 with 30 GW of connection capacity – which corresponds to 40 % of Italy’s peak load. In Denmark and Norway, thanks to proactive planning, grid capacity for future data hubs was secured early on.
Strategies for Faster and More Flexible Grid Connections
EMBER identifies several levers to alleviate grid bottlenecks:
- Phased Connections: Staged grid connections with 50 % initial capacity reduce waiting times.
- Non-firm Access: Flexible power procurement against reduced fees allows faster integration.
- Data Centre Flexibility: Load shifts of just 30 hours per year could, according to the International Energy Agency (IEA), double the available grid capacity.
- Site Steering: Clustering of data centers in areas with existing grid capacity reduces infrastructure expansion.
Recommendations for Policy Makers and Grid Operators
The report also makes recommendations for policy makers and grid operators.
- Recognize Grids as Strategic Infrastructure: Those who want AI investments must invest in grids today.
- Define AI Zones: Governments should specifically designate areas with high grid availability for AI infrastructure.
- Promote Spatial Coordination: Joint planning of grid, data centers, and renewable generation reduces system costs.
- Allow Alternative Connection Models: Flexible or staggered grid connections must be enabled by regulation.
- Provide Transparent Grid Data: Capacity maps and connection data are essential for planning and investment decisions.
Conclusion: Europe's AI Goals Stand or Fall with the Power Grid
The development of AI infrastructure is a competition for speed and location advantages, because those who invest in future-proof power grids today will become Europe’s digital hub tomorrow. However, those who hesitate risk an exodus of investors. Ambitious grid planning thus becomes the key technology for the AI future.
Download the EMBER Report: " Grids for data centres: ambitious grid planning can win Europe’s AI race"
The full English-language report from EMBER can be downloaded here: “Grids for data centres: ambitious grid planning can win Europe’s AI race”.
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