Europe’s top data centre locations, including Frankfurt, London, Amsterdam, Paris, and Dublin, risk losing their dominance unless governments improve long-term grid planning, according to a new report released Thursday by energy think-tank Ember.
The surge in demand for data centres, driven by the rise of artificial intelligence (AI) and its energy-intensive computing needs, is shifting investment priorities. Developers are increasingly choosing locations with faster and easier access to electricity, rather than remaining loyal to traditional hubs plagued by long grid connection delays.
The report warns that by 2035, up to 50% of Europe’s data centre capacity could relocate outside the current main hubs. This could divert billions of euros in economic activity to emerging markets, with significant implications for GDP and job creation. For example, data centres in Germany generated €10.4 billion in GDP in 2024 — a figure expected to more than double by 2029. Losing momentum in such a high-growth sector could harm economic prospects in these countries.
While France is likely to retain investment due to a relatively unconstrained grid, others could suffer delays of up to 13 years in connecting new data centres. The average wait time in the legacy hubs is 7–10 years, compared to only 3 years in Italy and even less in some emerging regions.
“Grids are ultimately deciding where investments go,” said Elisabeth Cremona, Senior Energy Analyst at Ember. “If Europe wants to maintain its competitiveness and achieve economic growth, it must prioritise grid development.”
She emphasized that the issue extends beyond data centres to all sectors undergoing electrification. Without updated grid infrastructure, industries could struggle to scale or relocate entirely to regions with faster energy access.
Electricity demand from data centres is projected to triple in Sweden, Norway, and Denmark by 2030, and increase three- to fivefold in Austria, Greece, Finland, Hungary, Italy, Portugal, and Slovakia by 2035.
The findings highlight an urgent need for European policymakers to treat grid planning as a strategic investment tool, not just a utility service, in order to retain tech-sector leadership and support industrial transformation.