Poor grid planning could shift Europe's data centre geography, report says
PARIS, June 19 (Reuters) - Europe's leading data centre hubs face a major shift as developers will go wherever connection times are shortest, unless there is more proactive electricity grid planning, a report on Thursday by energy think-tank Ember showed.
Data centre buildout has exploded in recent years as tech companies race to put together the strongest offering of competitive artificial intelligence (AI) models, which rely on a new generation of power-hungry data centres.
This could lead to a geographical shift in investment in Europe as developers look for new places with easier power access and shorter lead times, the report said.
By 2035, half of Europe's data centre capacity could be located outside the current main hubs Frankfurt, London, Amsterdam, Paris and Dublin, the report said.
This could leech billions of euros in investments from the congested countries, as data centres in Germany contributed 10.4 billion euros ($12 billion) in GDP in 2024 which should more than double by 2029, and it could slow job growth, it said.
Only France, is expected to maintain continued data centre investment as the grid remains relatively unconstrained, the report said.
Connecting a new data centre to the grid in legacy hubs can take an average of 7–10 years, with some projects facing delays of up to 13 years, the report said.
However, wait times in newer markets are much shorter, with Italy taking just three years, it said.
"Grids are ultimately deciding where investments go ... they are now effectively a tool to attract investment," said Elisabeth Cremona, Senior Energy Analyst at Ember.
"In Europe's push for competitiveness and economic growth, it now needs to be taking into account grids and driving investment to that infrastructure if it wants to see other projects materialise," she said.
She added that this is not unique to data centres but covers all industry, as any kind of industry that is either new or looking to electrify is going to go through the same process.
In Sweden, Norway and Denmark, data centre electricity demand is expected to triple already by 2030. In Austria, Greece, Finland, Hungary, Italy, Portugal and Slovakia data centre consumption is projected to increase by three to five times by 2035 compared to 2024.
($1 = 0.8692 euros)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Auto Blog
32 minutes ago
- Auto Blog
Audi May Take Drastic Action To Dodge Tariffs
German Media Fears Massive Costs The ongoing uncertainty around how bad tariffs may get ahead of the July 9 deadline for agreement, for European automakers in particular, is no reason to stay idle. Regardless of what the final impact will be, tariffs aren't going anywhere anytime soon, and according to German magazine Der Spiegel, Audi is considering building a production facility somewhere in the southern U.S. to minimize the effects. But it's not an easy call to make. As noted by Automotive News, building a plant here would be 'the more expensive option out of a number of scenarios being considered, with company sources estimating costs of up to €4 billion (approximately $4.6 billion). So will it happen anyway? An Audi spokesperson has confirmed that the automaker intends to build its U.S. presence, but that's typical non-committal public relations speak. 0:04 / 0:09 Walmart is selling a 'heavy duty' $89 step ladder for $48, and shoppers say it's 'sturdy and secure' Watch More Audi Will Make A Decision This Year, Probably Source:'We are currently examining various scenarios for this. We are confident that we will make a decision this year in consultation with the [Volkswagen] Group on how this will look in concrete terms,' the spokesperson wrote in an email. Audi has been rumored to be examining the viability of a U.S. plant for several years, but up until now, the automaker has been performing relatively well in America, although Audi's 2024 sales showed a sharp year-on-year decline of 14%, indicating that changes must be made somewhere, regardless of current or future tariff measures. To help effect that change, Audi is working on a fresh new design language, and U.S. manufacturing (or at least assembly) may help future arrivals find broader appeal with competitive pricing. BMW has been producing cars in South Carolina since 1994, and in those 30-odd years, it's grown to become the largest automotive exporter by value in the U.S. Perhaps Audi would benefit from a similar approach. Where Audi Could Put Down Roots As part of the Volkswagen Group, Audi wouldn't necessarily have to start from scratch. The VW brand operates a plant in Chattanooga, Tennessee, where the ID.4 EV and the Atlas and Atlas Cross Sport SUVs are produced, and its Scout Motors brand is building one in Columbia, South Carolina. But that's it – Porsche won't be moving production to America because its sales volumes would not justify such extensive investment, and its customer base is not unused to absorbing exorbitant price increases. As we noted earlier, Audi hasn't made a decision yet because it's exploring other options. One of those reportedly is to negotiate a tariff import deal with the U.S. government, which compatriot automakers BMW, Mercedes-Benz, and VW are said to be collaboratively pursuing alongside the Ingolstadt-based manufacturer. BMW and Mercedes are the only exporters in this group, but all have made significant investments in the U.S. About the Author Sebastian Cenizo View Profile
South Wales Argus
2 hours ago
- South Wales Argus
Creative industries to get £380m boost ahead of industrial strategy launch
The investment, announced by Culture Secretary Lisa Nandy, will see £380 million spent on a range of projects intended to double private investment in the creative industries. Ms Nandy said the investment would 'boost regional growth, stimulate private investment, and create thousands more high-quality jobs'. The figure includes £25 million for research into cutting-edge technologies such as the virtual avatars used in Abba Voyage, and £75 million to support the film industry. It will also see £30 million put towards backing start-up video games companies – an industry worth billions of pounds to the UK – and another £30 million for the music industry, including an increase in funding for grassroots venues. Culture Secretary Lisa Nandy said the investment would create thousands of jobs in Britain's creative industries. (Andrew Matthews/PA) Another £150 million will be split between the mayors of Manchester, Liverpool, the West Midlands, West Yorkshire, the North East and the West of England to support creative businesses in their regions. The announcement comes as the Government prepares to publish its industrial strategy next week, billed as a 10-year, multibillion-pound plan to back certain sectors and secure growth for the UK economy. The creative industries are set to be one of the winners, with a plan for the sector expected to be published alongside the wider industrial strategy. Business Secretary Jonathan Reynolds said: 'The UK's creative industries are world-leading and have a huge cultural impact globally, which is why we're championing them at home and abroad as a key growth sector in our modern industrial strategy.' But earlier this month, the Government also rejected a planning application for a major new film studio near Holyport, in Berkshire, over its impact on the green belt. The £380 million has been welcomed by the industry, with the Broadcasting, Entertainment, Communications and Theatre Union (Bectu) saying it was a 'show of commitment to the sector'. But Bectu chief Philippa Childs said creative workers would also be looking for 'sustained support' from the Government as the sector 'recovers from a series of external shocks'. Recent years have seen the sector rocked by Covid, the cost-of-living crisis and concerns about the impact of AI and Donald Trump's threat to impose tariffs on films made outside the US. Conservative shadow culture secretary Stuart Andrew accused Labour of threatening the 'very survival' of the creative industries. He said: 'From their national insurance jobs tax to their business rates hike, Labour are pushing creative businesses to the brink, and we now know that Rachel Reeves has a secret plan to raise taxes – meaning things will only get worse. 'Labour must recognise that their economic mismanagement is dealing a devasting blow to the sector.'
South Wales Guardian
2 hours ago
- South Wales Guardian
Creative industries to get £380m boost ahead of industrial strategy launch
The investment, announced by Culture Secretary Lisa Nandy, will see £380 million spent on a range of projects intended to double private investment in the creative industries. Ms Nandy said the investment would 'boost regional growth, stimulate private investment, and create thousands more high-quality jobs'. The figure includes £25 million for research into cutting-edge technologies such as the virtual avatars used in Abba Voyage, and £75 million to support the film industry. It will also see £30 million put towards backing start-up video games companies – an industry worth billions of pounds to the UK – and another £30 million for the music industry, including an increase in funding for grassroots venues. Another £150 million will be split between the mayors of Manchester, Liverpool, the West Midlands, West Yorkshire, the North East and the West of England to support creative businesses in their regions. The announcement comes as the Government prepares to publish its industrial strategy next week, billed as a 10-year, multibillion-pound plan to back certain sectors and secure growth for the UK economy. The creative industries are set to be one of the winners, with a plan for the sector expected to be published alongside the wider industrial strategy. Business Secretary Jonathan Reynolds said: 'The UK's creative industries are world-leading and have a huge cultural impact globally, which is why we're championing them at home and abroad as a key growth sector in our modern industrial strategy.' But earlier this month, the Government also rejected a planning application for a major new film studio near Holyport, in Berkshire, over its impact on the green belt. The £380 million has been welcomed by the industry, with the Broadcasting, Entertainment, Communications and Theatre Union (Bectu) saying it was a 'show of commitment to the sector'. But Bectu chief Philippa Childs said creative workers would also be looking for 'sustained support' from the Government as the sector 'recovers from a series of external shocks'. Recent years have seen the sector rocked by Covid, the cost-of-living crisis and concerns about the impact of AI and Donald Trump's threat to impose tariffs on films made outside the US. Conservative shadow culture secretary Stuart Andrew accused Labour of threatening the 'very survival' of the creative industries. He said: 'From their national insurance jobs tax to their business rates hike, Labour are pushing creative businesses to the brink, and we now know that Rachel Reeves has a secret plan to raise taxes – meaning things will only get worse. 'Labour must recognise that their economic mismanagement is dealing a devasting blow to the sector.'
