Yazılar

Poor Grid Planning Threatens Europe’s Data Centre Hubs, Ember Report Warns

/in /tarafından

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.

Malaysia Plans 50% Increase in Gas-Fired Power Capacity to Support Booming Data Centre Demand

/in /tarafından

Malaysia aims to expand its gas-fired power capacity by 6 to 8 gigawatts by 2030 to meet soaring electricity demand driven largely by the rapid growth of data centres, an industry official said. This expansion would represent a 40-54% increase from the current 15 GW of gas capacity, as the country seeks to reduce reliance on coal.

According to Megat Jalaluddin, CEO of state utility Tenaga Nasional Berhad, the government plans to build new gas plants and extend the lifespan of existing ones, positioning gas as the key transitional fuel after coal. Total electricity consumption in Malaysia is projected to rise by 30% by 2030.

Malaysia is expected to see the fastest growth in data centre power demand in Southeast Asia, with data centres’ share of electricity consumption in the region forecasted to triple to 21% by 2027 from 7% in 2022, based on a May report by Bain & Co, Google, and Temasek.

Petronas, Malaysia’s LNG exporter, may start importing liquefied natural gas within four to five years due to rising gas demand. The country also targets adding up to 10 GW of renewable energy capacity by 2030, more than doubling its current 9 GW, as data centres push for greener energy sources.

Deputy Prime Minister Fadillah Yusof highlighted that data centres will require 19.5 GW of power generation by 2035, making up 52% of Peninsular Malaysia’s electricity use, up sharply from about 2% today.

Malaysia’s southern state of Johor has become a leading data centre hub in Southeast Asia, favored for its proximity to Singapore, affordable land and power, and faster regulatory approvals. Tech giants like Microsoft, Nvidia, Google, and ByteDance have committed billions in investments since early 2024, fueling an infrastructure boom.

Bain Capital Plans $4 Billion+ Sale of China Data Centre Arm WinTriX

/in /tarafından

Bain Capital is preparing to sell the China business of data centre operator WinTriX DC Group, in a deal that could value the division at over $4 billion, according to two sources with direct knowledge of the matter. The move comes amid soaring valuations in the global data centre market, fueled by surging demand for artificial intelligence infrastructure.

The potential sale would mark a major strategic reshuffle for Bain Capital, which acquired Chindata Group in 2019, later merged it with Southeast Asia’s Bridge Data Centres, and then rebranded and separated the businesses under the WinTriX name after taking Chindata private in a $3.16 billion deal in 2022.

Key Financials and Deal Context:

  • WinTriX’s China unit is projected to generate close to 4 billion yuan ($554 million) in EBITDA in 2025.

  • The sale process is in early stages, with advisors having held preliminary talks with potential buyers.

  • Bytedance, the parent company of TikTok, was WinTriX’s largest customer in 2022, accounting for 86% of its revenue, according to Fitch Ratings.

Market Backdrop:
The sale comes as data centre valuations surge globally, bolstered by AI-driven growth. In 2023, Australia’s AirTrunk was sold to a Blackstone-led consortium at over 20 times forward earnings, illustrating investor appetite in the sector. By comparison, GDS Holdings, a major China-based rival, is currently trading at a P/E multiple of 8.48, per LSEG data.

Fitch Downgrade Adds Complexity:
Despite growth opportunities, Fitch Ratings downgraded WinTriX in February from “BBB” to “BB”, citing increased risks tied to its strategic pivot toward overseas expansion, slower demand for hyperscale centres in China, and rising local competition.

Bridge Data Centres to Remain Under Bain:
Sources said Bain will retain control of Bridge Data Centres, which operates outside China and in March secured a $2.8 billion bank loan to support expansion in markets like India and Malaysia.

Neither Bain Capital nor WinTriX responded to Reuters’ requests for comment.

As AI infrastructure continues to drive global investment in cloud and compute capabilities, the potential WinTriX China sale could be a timely cash-out for Bain Capital, while also offering a major player a foothold in China’s data infrastructure market — albeit one still closely tied to a dominant but concentrated revenue base.