According to a new report by the Ember group, strategic planning of the power grid is becoming a decisive factor for European countries to attract economic opportunities linked to data centers and AI.

An Ember analysis reveals that emerging markets for data centers, such as the Nordic countries and Southern European countries, are expected to experience data center demand growth (+110%) at nearly double the rate of traditional market leaders — Frankfurt, London, Amsterdam, Paris, and Dublin (+55%) — by 2030.

These emerging markets are attractive to investors due to their shorter connection waiting times. In established centers, grid connection takes an average of 7 to 10 years, with some facilities waiting up to 13 years. Waiting times in emerging markets are much shorter, such as in Italy, where they reach just three years.

According to the report, data centers are key to driving investment in AI, a sector that the EU and its neighboring countries have made central to their economic and competitiveness strategies. The European data center market is valued at $47 billion in 2024 and is expected to reach $97 billion by 2030, boosting job creation and generating new tax revenues.

Long waiting times for grid connection have occurred in key markets due to concentrated demand and insufficient grid support. In 2023, data centers accounted for between 33% and 42% of electricity demand in key markets such as Amsterdam, London, and Frankfurt, and nearly 80% in Dublin.

Data center electricity demand in Europe is projected to increase by 150% between 2024 and 2035. In some markets, demand could triple as soon as 2030. This growth positions data centers as one of the fastest-growing sources of energy demand in Europe, outpacing electric vehicles and rivaling electrified industry.

Ember’s analysis concludes that some key interventions can reduce connection timelines and increase capacity, such as improving grid flexibility, strategically locating data centers, and implementing smarter grid connection agreements. In some cases, this could reduce waiting times to as little as one year.

Ember analyst Elisabeth Cremona noted, “As Europe seeks to boost AI industries, grids will be a decisive factor. While hosting AI infrastructure promises attractive benefits such as economic growth and digital sovereignty, these cannot materialize if grid congestion hinders them. Countries that invest now in innovative grids are most likely to emerge as Europe’s data infrastructure hubs in the coming years.”