Data Center Development at a Crossroads: Experts Point to a Real Problem

• In 2023, European data centers consumed up to 96 TWh of energy, representing 2-3% of total demand.
• By 2030, data center energy consumption could increase by as much as 204 percent.
• Congestion of electricity networks in the FLAP-D market increases the waiting time for connection to the grid.

Last year , data centers accounted for approximately 1.5% (415 TWh) of global electricity consumption . European data centers alone consumed between 70 and 96 TWh of energy, which accounted for 2-3% of the region's electricity demand. As the Polish Economic Institute emphasizes, in the so-called FLAP-D market (Frankfurt, London, Amsterdam, Paris, and Dublin) , where the concentration of such centers is the highest in Europe, they already had a 33 to 42% share of energy consumption in 2023 (almost 80% in Dublin).

These numbers will continue to grow in the coming years. The development of artificial intelligence and other new technologies is steadily increasing demand for digital infrastructure, especially data centers. It is predicted that in 2030 – depending on the demand for artificial intelligence and local constraints on data center construction – energy consumption in such facilities worldwide could reach between 670 and 1,260 TWh. As PIE emphasizes, these forecasts imply a potential increase in energy demand in data centers of 61-204 percent between 2024 and 2030. The International Energy Agency estimates that energy consumption in European data centers will reach 115 TWh in 2030 , while the Independent Commodity Intelligence Services estimates it at 168 TWh.

The wait for grid connection can take years. This makes a key area of Europe lose its importance.

The Institute notes, however, that grid congestion in FLAP-D areas is causing the historical dominance of this market to slowly wane . While 62% of European data centers are currently located in the FLAP-D market, this share could decline to 55% by 2030.

" One of the key factors determining the location of new facilities has become the waiting time for connection to the grid ," we read in the PIE analysis. The institute reports that in areas with a high concentration of data centers, the time to connect to the grid averages 7-10 years, and in the UK, it can reach up to 13 years!

"A possible improvement is to gradually connect new facilities to the grid, i.e., allocating them immediate capacity below target demand and gradually expanding it. Flexibility services, such as task migration between data centers in different regions or energy storage, will be key for integration with energy systems, " PIE points out. It also notes that while the energy consumption of data centers places an additional burden on the grid, the energy consumption profile of these facilities offers opportunities for more flexible demand.

"However, it's important to remember that the development of data centers is not only a technical and infrastructural challenge, but also a social one . Waves of protests have swept through Ireland and the US state of Virginia in recent years, which have the highest concentration of data centers in the world. As with wind or nuclear energy, it's crucial for the state to oblige infrastructure owners to provide adequate benefits to local communities," the Institute concludes its analysis.