- Report warns Europe's data center push ultimately means the sector will need more electricity
- Data centers only pay for their direct upgrades – not broader grid upgrades
- Government intervention is likely needed to protect billpayers
New Moody's data has warned that Europe's growing data center footprint could severely impact energy prices across the continent as we're already seeing in the US.
As of 2025, Europe's data center-related electricity consumption stood at around 2.5% of the entire continent's consumption, however within the space of a decade (by 2035), this could more than double to 5.7% across countries like France and the UK.
But more worryingly, the countries that are set to play host to the most capacity will likely see even starker rises, including the Northlands (17%) and Ireland (30%).
European data centers could push energy prices up
Moody's explained that, while data centers would typically pay for any upgrades needed for their direct connection, the grid operator usually picks up the bill for wider network reinforcement. Those additional costs, as well as a tighter supply-demand imbalances, could push costs onto the end user – you and I.
Bt the report also asks whether this could just be a short-term period of discomfort for billpayers, because the ongoing AI boom could lead to further growth opportunities among utilities companies. With extra revenue and profits, they could invest in new (and clean) generation and transmission infrastructure.
Still, with imminent price hikes potentially on the cards, Moody's anticipates government intervention so that consumers don't end up being hit with the most severe rises. Tax cuts, price caps and stricter rules for data center connections are among the most viable solutions to keep a lid on costs.
With data centers arguably having a much more profound impact on billpayers in the US and the launch of the Trump administration's Ratepayer Protection Pledge, it remains to be seen whether Europe will follow suit and how its nations will protect their citizens.
Via The Register
