Released February 19, 2025 | SUGAR LAND
en
Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--Even without the rise of the energy demand from an increasing number of data centers, the European Union's (EU) electricity costs would be astronomical. That's partly due to the loss of Russian natural gas with which to generate power due to that nation's invasion of Ukraine and the resulting trade embargoes and sanctions.
In November 2024, Reuters reported that "Wholesale power prices across key economies in mainland Europe have climbed to their highest levels in over a year," and that was before the winter heating season, in which energy demand in those cold climes tends to reach its yearly peak.
When coupled with the fact that Industrial Info Vice President of Research for Industrial Manufacturing David Pickering expects global electricity demand in 2026 to double from 2022's 460 terawatt-hours, the stress on the power grid becomes clearer.
As for data centers across the world, he noted, today's "internet-dependent society" is requiring more of them to be built everywhere, including in Europe. Between January 2025 and March of 2033, Industrial Info expects the construction of 327 new data centers whose demand will total approximately 13,535 megawatts (MW) of new power demands, with the vast majority of that coming by 2030. With all this, Pickering sees an increase in "blackouts and brownouts with other industries because data centers are taking up so much of the local power."
Europe has also in recent years switched from nuclear to wind and solar, but their intermittency means they are "more used as a backup alternative than primary power, in most cases," Pickering observed. Some parts of Europe are beginning to use geothermal power, where available, but as much promise as geothermal has, it is still in its infancy as providers look for more efficient methods of harvesting the earth's heat.
Wind and solar especially suffer in the winter, a situation for which Germans have a word: Dunkelflaute, or the "dark doldrums." A more technical term would be "anticyclonic gloom," but either way it means the sun doesn't shine, the wind doesn't blow, and no energy is coming from the renewable sources.
As Europe's largest economy and with a significant portion of the region's power grid, it is of note that Germany's poll-leading center-right coalition is promising to put nuclear energy back on the table, after previous governments dismantled most of it. First looking to restart recently retired plants, they also are planning to "prioritize research into fourth- and fifth-generation nuclear technology, small nuclear reactors, and fusion power plants," according to a published platform. The country also is promising to "lower the electricity tax and grid fees" to reduce energy costs.
In some areas of Northern Europe, governments are starting to require new data centers to generate their own electricity--and then some, Pickering said. "They say, if you're going to build a 20-MW data center, you have to produce 25 MW of power--and that extra 5 MW needs to go back into the grid to offset what you're producing." Nations are also putting the brakes on the permitting process to give grids more time to keep up with growing demands.
In a report issued on February 14, the International Energy Agency (IEA) said it believes that renewable energy, along with some nuclear power, will be sufficient to meet growing energy demands through 2027--a very short-term goal. IEA data show that renewable generation grew by 8.4%, with the trend expected to drop slightly to 7.2% between now and 2027. Also, solar photovoltaic generation surpassed coal-fired output for the first time ever in 2024.
Natural gas-fired generation declined by 6% in 2024 compared to 2023, with the IEA forecasting that trend to continue through 2027. It also sees the share of renewables rising to 56% in 2027, above its 2024 share of 48%.
IEA data also show that 2024 demand in the EU was slightly below that of 2021, although 2024's demand rose, reversing a two-year demand slide in 2022 and 2023. The demand drop was attributed to an economic downturn--some of the results of which are being seen in expected election results in Germany, France, and other EU nations.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
In November 2024, Reuters reported that "Wholesale power prices across key economies in mainland Europe have climbed to their highest levels in over a year," and that was before the winter heating season, in which energy demand in those cold climes tends to reach its yearly peak.
When coupled with the fact that Industrial Info Vice President of Research for Industrial Manufacturing David Pickering expects global electricity demand in 2026 to double from 2022's 460 terawatt-hours, the stress on the power grid becomes clearer.
As for data centers across the world, he noted, today's "internet-dependent society" is requiring more of them to be built everywhere, including in Europe. Between January 2025 and March of 2033, Industrial Info expects the construction of 327 new data centers whose demand will total approximately 13,535 megawatts (MW) of new power demands, with the vast majority of that coming by 2030. With all this, Pickering sees an increase in "blackouts and brownouts with other industries because data centers are taking up so much of the local power."
Europe has also in recent years switched from nuclear to wind and solar, but their intermittency means they are "more used as a backup alternative than primary power, in most cases," Pickering observed. Some parts of Europe are beginning to use geothermal power, where available, but as much promise as geothermal has, it is still in its infancy as providers look for more efficient methods of harvesting the earth's heat.
Wind and solar especially suffer in the winter, a situation for which Germans have a word: Dunkelflaute, or the "dark doldrums." A more technical term would be "anticyclonic gloom," but either way it means the sun doesn't shine, the wind doesn't blow, and no energy is coming from the renewable sources.
As Europe's largest economy and with a significant portion of the region's power grid, it is of note that Germany's poll-leading center-right coalition is promising to put nuclear energy back on the table, after previous governments dismantled most of it. First looking to restart recently retired plants, they also are planning to "prioritize research into fourth- and fifth-generation nuclear technology, small nuclear reactors, and fusion power plants," according to a published platform. The country also is promising to "lower the electricity tax and grid fees" to reduce energy costs.
In some areas of Northern Europe, governments are starting to require new data centers to generate their own electricity--and then some, Pickering said. "They say, if you're going to build a 20-MW data center, you have to produce 25 MW of power--and that extra 5 MW needs to go back into the grid to offset what you're producing." Nations are also putting the brakes on the permitting process to give grids more time to keep up with growing demands.
In a report issued on February 14, the International Energy Agency (IEA) said it believes that renewable energy, along with some nuclear power, will be sufficient to meet growing energy demands through 2027--a very short-term goal. IEA data show that renewable generation grew by 8.4%, with the trend expected to drop slightly to 7.2% between now and 2027. Also, solar photovoltaic generation surpassed coal-fired output for the first time ever in 2024.
Natural gas-fired generation declined by 6% in 2024 compared to 2023, with the IEA forecasting that trend to continue through 2027. It also sees the share of renewables rising to 56% in 2027, above its 2024 share of 48%.
IEA data also show that 2024 demand in the EU was slightly below that of 2021, although 2024's demand rose, reversing a two-year demand slide in 2022 and 2023. The demand drop was attributed to an economic downturn--some of the results of which are being seen in expected election results in Germany, France, and other EU nations.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
