Europe's Data Center Race: Struggling to Meet AI Demands
European data centres face a 22% capacity growth but still struggle to meet AI demand, risking technological dependency on the U.S. and China. Energy-efficient AI models from China and increasing electricity grid congestion add to challenges. Rising costs and expanding secondary markets highlight competitive pressures.

European data centres are on track to expand their capacity by 22% this year; however, they face a significant challenge in meeting the soaring demand driven by artificial intelligence. Industry analysts expressed their concerns at a recent conference, warning that Europe could fall behind in the global AI race.
Despite China's advancements with energy-efficient AI models, Europe continues to grapple with issues such as electric grid congestion and limited suitable sites for new data centres. Major tech companies like Google and Amazon remain committed to developing 'hyperscale' data centres, which intensifies the demand for additional space.
The shortage of space is particularly noticeable in traditional data centre hubs across Europe, prompting expansion in secondary markets like Milan, Warsaw, and Berlin. However, the continent still faces tough competition, as U.S. firms are set to invest $500 billion over the next four years, potentially leaving Europe technologically dependent.
(With inputs from agencies.)