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

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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.

Italy’s Leonardo to Acquire European Cybersecurity Firm Amid Sector Expansion

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Leonardo (LDOF.MI), Italy’s state-controlled aerospace and defense giant, is preparing to announce the acquisition of a European cybersecurity company, according to comments made Tuesday by Chairman Stefano Pontecorvo in an interview with Reuters.

While Pontecorvo did not disclose the identity of the target firm or specify a closing timeline, he emphasized the strategic importance of the deal. “Cybersecurity is an essential component in so-called multi-domain warfare, where everything is connected with everything,” he said. “Connections must be secure so that the enemy cannot use parts of a system.”

The move aligns with Leonardo’s broader strategy to consolidate and grow its cybersecurity operations, which the company sees as a critical pillar in modern defense architecture.

Back in October, CEO Roberto Cingolani confirmed the group was exploring multiple acquisition targets—both in Italy and abroad—adding that no deal would exceed 15% of the division’s annual turnover. He also projected double-digit growth for Leonardo’s cybersecurity segment in the years ahead.

Speaking at the Paris Airshow, Pontecorvo also signaled that the evolving and increasingly complex nature of cyber threats would likely encourage more collaborations across the defense and tech sectors, as the demand for specialized cybersecurity solutions grows.

The upcoming acquisition is expected to strengthen Leonardo’s positioning within European defense networks, as the continent accelerates digital and military integration in response to rising geopolitical tensions.

Italy Probes Chinese AI Firm DeepSeek Over Misinformation Risks

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Italy’s antitrust and consumer protection agency AGCM announced Monday it has launched a formal investigation into Chinese artificial intelligence startup DeepSeek, alleging the company failed to clearly warn users about the potential for its chatbot to generate false or misleading information.

The regulator stated that DeepSeek’s platform does not provide “sufficiently clear, immediate and intelligible” alerts about the risk of AI-generated “hallucinations” — a term used in the AI field to describe instances when models produce inaccurate or completely fabricated information in response to user prompts.

AGCM is focusing on the consumer rights aspect, emphasizing the risk users might unknowingly rely on erroneous AI outputs due to insufficient warning or transparency.

DeepSeek did not immediately respond to requests for comment on the investigation.

This marks the second run-in DeepSeek has had with Italian authorities this year. In February, the country’s data protection regulator ordered the startup to suspend access to its chatbot within Italy after the company failed to resolve concerns related to its privacy policy.

The probe highlights increasing regulatory scrutiny over generative AI models in Europe, particularly regarding transparency, data protection, and consumer rights.