Artificial intelligence energy consumption as a strategic challenge for Europe
The energy consumption of artificial intelligence is growing faster than any other segment in the energy sector. This presents Europe with an enormous challenge. The European Union aims to catch up with the global AI leaders by 2030. To achieve this, Brussels is pursuing ambitious goals with programmes such as InvestAI (€200 billion) and the AI Continent Action Plan.
Data centre capacity is set to triple within five to seven years. But the real bottleneck is not hardware. Instead, the power grid will determine success. Europe’s existing grid infrastructure is not yet sufficiently prepared for this expansion. This is exactly where it will be decided whether Europe achieves its AI goals.
Data centres are driving Europe’s electricity demand – and rapidly
According to EMBER, electricity demand from data centres in Europe is expected to rise to 236 terawatt-hours (TWh) by 2035. That is almost a tripling compared to 2024. This means data centres will even overtake e-mobility as the strongest source of growth in the power sector.
Demand is growing particularly dynamically in Scandinavian countries such as Sweden, Denmark and Norway. There, consumption is likely to triple by 2030.
Traditional data centre hubs are reaching their limits
The established FLAP-D markets – Frankfurt, London, Amsterdam, Paris and Dublin – are increasingly reaching their limits. Grid bottlenecks are slowing down new projects. In Dublin, data centres already account for around 80% of electricity consumption. As a result, new projects there are effectively blocked until 2028.
Grid connections have also largely been halted in Frankfurt and the Netherlands. The result: a clear relocation trend towards southern and northern Europe.
Grid-ready is the new investment criterion
According to EMBER, the data centre market in countries with lower grid congestion is growing almost twice as fast as in FLAP-D cities. This includes, among others, Italy, Belgium and the Nordic countries. This clearly shows that time to grid connection has long been a decisive criterion when choosing a location.
It is now even more important than real estate prices or tax incentives. In 2024, Italy recorded data centre projects with 30 GW of connection capacity. That corresponds to around 40% of Italy’s peak load. In Denmark and Norway, forward-looking planning secured grid capacity early on for future data hubs.
Strategies for faster and more flexible grid connections
EMBER identifies several levers to ease grid bottlenecks:
- Phased Connections: Staged grid connections with 50% initial capacity shorten waiting times.
- Non-firm Access: Flexible power draw in exchange for reduced fees enables faster integration.
- Data Centre Flexibility: According to the International Energy Agency (IEA), load shifting of just 30 hours per year could double the available grid capacity.
- Location steering: Clustering data centres in areas with existing grid capacity reduces infrastructure expansion.
Recommendations for policymakers and grid operators
The report also makes recommendations for policymakers and grid operators.
- Treat grids as strategic infrastructure: If you want AI investment, you 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 grids, data centres and renewable generation reduces system costs.
- Allow alternative connection models: Flexible or staged 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
Building AI infrastructure is a competition for speed and location advantages. Those who invest in future-proof power grids today will become Europe’s digital hub tomorrow. Those who hesitate, on the other hand, risk an exodus of investors.
Ambitious grid planning thus becomes a key technology for Europe’s AI future.
Download the EMBER report: " Grids for data centres: ambitious grid planning can win Europe’s AI race"
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