Data centres and the power demand of AI

Why it matters

The growth of AI is increasing data-centre electricity demand and putting pressure on grid connections in several regions. Operators, utilities and governments are rethinking where and how data centres are powered.

Power availability is becoming a deciding factor in where data centres are built. Operators are working more closely with utilities and governments on grid capacity, flexible operation and low-carbon supply.

What's changing

• Grid connection timelines constrain new capacity in some markets.
• Operators are signing long-term renewable power agreements.
• Efficiency reporting and waste-heat reuse are receiving more policy attention, including under the EU Energy Efficiency Directive.

How leaders are responding

• Coordinating early with network operators on capacity planning.
• Exploring on-site generation and storage.
• Improving cooling and workload efficiency.

What good looks like

• Data centre siting decided with grid operators early
• Power purchase agreements matched to new demand
• Efficiency metrics reported for every facility

What to watch

• Grid connection reforms in major markets.
• Efficiency and reporting requirements for data centres.
• On-site generation and storage.

Where to start