Think-tank Ember has published new research warning that poor electricity grid planning could cause a major shift in Europe’s data centre landscape, particularly as developers increasingly seek locations with faster and easier grid connections rather than traditional hubs like Frankfurt, London, Amsterdam, and Paris.
Data centres are a key part of critical infrastructure. In 2024, techUK published a report highlighting the essential role they play in enabling digital transformation across all sectors of the economy. As well as contributing £4.7 billion in gross added value (GVA) to the UK economy and 43,500 jobs, they are the backbone of our digital world. Data centres play a role in everything from delivering our favourite TV shows to ensuring we have access to banking, education, and healthcare.
The opportunity AI has unlocked demands further data centre capacity which, in turn, requires energy. Equinix, an American multinational data centre and colocation company operating interconnection and data centre facilities worldwide, says it is responding to this need by investing in and expanding its campuses. The energy grid is evidently an important consideration in that process, with some campuses located in areas where both land and energy infrastructure are readily available. Other sites are built in areas where temporary energy solutions are needed while grid access is extended.
In markets like the UK, the Government is making significant investment in the grid through programs like the RIIO-T3 Business Plan, which commits £35 billion to up-level the UK’s energy transmission system over the next 5 years, doubling the amount of transferable power by 2029 – creating great optimism.
Equinix claims it has made significant investments in its energy programs. Examples include renewable energy adoption and the global Equinix Heat Export program, which intends to contribute heat and energy to communities that surround its campus locations. By adopting cleaner energy alternatives and innovative technologies, the company says it limits its reliance on the grid in some countries as well as reducing emissions globally.
Its power purchase agreements (PPAs) are long-term wind and solar agreements where it partners directly with producers, helping to fund the development of projects like new wind and solar farms, increasing the amount of renewable energy available to the grid while supporting the long-term goal of reaching net zero by 2040. Globally, the Equinix Heat Export program takes waste heat from its data centres and, in partnership with energy utilities, distributes this heat to surrounding communities. In Helsinki, this program provides heat for local homes and, in Paris, heat is delivered to the Plaine Saulneir urban development zone which, alongside local houses, is home to the Olympic swimming pool.
The energy grid is critical for supporting data centre infrastructure, and it’s certainly exciting to see innovation coming from both energy utilities and data centre operators. A collaboration between the two is crucial for unlocking opportunities for businesses, enriching the services they can offer to consumers, and achieving climate goals.
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