Grids set to block or unlock economic opportunities in Europe’s AI race

Countries with lower grid congestion are expected to see double the data centre growth as developers chase new markets

Brussels, 19 June 2025 – Strategic electricity grid planning is emerging as a deciding factor for which European countries will attract economic opportunities linked to data centres and AI, according to a new report from global energy think tank Ember.

Analysis from Ember finds that new markets for data centres, such as the Nordics and countries in southern Europe, are expected to see data centre demand grow (+110%) at nearly double the rate of traditional market leaders Frankfurt, London, Amsterdam, Paris and Dublin (+55%) by 2030.

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These emerging markets are attractive to investors due to shorter wait times for connection. In established hubs, connection to the grid takes an average of 7-10 years, with some facilities waiting up to 13 years to connect. Wait times in emerging markets are much shorter, such as three years in Italy.

Data centres are key to unlock AI investment, which the EU and neighbours have made central to economic and competitiveness strategies. The European data centre market is valued at $47 billion in 2024 and projected to reach $97 billion by 2030, driving job creation and generating new tax revenues.

As Europe courts AI industries, grids will be a make-or-break factor. While hosting AI infrastructure promises tantalising benefits such as economic growth and digital sovereignty, these cannot materialise if grid congestion gets in the way.

Elisabeth Cremona
‍Senior Energy Analyst, Europe, Ember

As data centres expand, grid planning can help reduce wait times

Long grid waiting times have emerged in key markets due to the concentration of demand combined with insufficient grid support. In 2023, data centres consumed between 33% and 42% of electricity demand in the key markets of Amsterdam, London and Frankfurt, and nearly 80% in Dublin.

Data centre electricity demand in Europe is projected to increase by 150% between 2024 and 2035. In some markets, demand could triple already by 2030. This surge positions data centres as one of Europe’s fastest-growing sources of power demand – outpacing electric vehicles and rivaling the electrified industry.

Ember’s analysis finds that some key interventions can reduce connection timelines and help support increased capacity, such as enhancing grid flexibility, strategically siting data centres and applying smarter grid connection agreements. In some cases, these could enable wait times to be brought down to just one year.

“Countries investing now in innovative grids will more than likely emerge as Europe’s data infrastructure hubs in the years to come,” added Elisabeth Cremona.

About Ember

Ember is an independent energy think tank that aims to accelerate the clean energy transition with data and policy. It creates targeted data insights to advance policies that urgently shift the world to a clean, electrified energy future.

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