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Europe’s data center power consumption is projected to nearly triple by 2030, driven by the region’s booming digital economy, increase in cloud services, internet usage, and the ever-expanding demand for data storage from industries like artificial intelligence (AI), 5G technology, and machine learning. According to McKinsey, demand for electricity from data centers in Europe will surge to approximately 35 gigawatts (GW) by the end of this decade, up dramatically from the 10 GW the centers currently consume. This rise is driven by a combination of enhanced digital services, increasing data traffic, and cloud adoption. However, this growing power demand also pushes Europe toward a critical juncture in its infrastructure and energy strategy.
Europe’s energy supply will need to adapt quickly to ensure that the massive energy demand from data centers does not destabilize the grid or overshadow the ambitious decarbonization goals of the continent. McKinsey stressed that much of the necessary electricity will need to come from low-carbon sources, in line with the EU’s Green Deal targets—which aim for net-zero carbon emissions by 2050. This demand for greener energy also presents substantial growth opportunities for companies in the renewable energy space, from solar firms to wind projects and battery storage providers. Companies like Tesla ($TSLA) and NextEra Energy ($NEE), which are heavily involved in green energy initiatives, could have a role in providing the infrastructure needed to power Europe’s growth.
In addition to the sheer volume of electricity required, infrastructural adjustments will be critical. McKinsey identified grid upgrades throughout the continent to ensure a stable energy supply for data centers. This necessitates public and private investments not only in renewable energy generation but also in the modernization of regional electrical grids. These upgrades would mitigate the risk of energy disruptions, which would otherwise have ripple effects on highly data-reliant sectors. Companies that focus on grid technologies and infrastructure development, such as Enphase Energy ($ENPH), also stand to benefit from this growing trend.
The report highlights the opportunity for Europe to meet these demands while still adhering to its environmental commitments. Europe’s data centers are expected to form about 5% of the continent’s total energy consumption by 2030. This expanded power demand underscores the critical importance of accelerating both renewable energy generation and grid infrastructure upgrades. If managed correctly, Europe could realize an advanced, sustainable energy ecosystem while coping with the digital transformation currently reshaping the region. The interplay between data infrastructure and clean energy will likely define Europe’s energy strategy in the coming decade.
