Europe’s ambitions to expand artificial intelligence and cloud computing infrastructure could be constrained by growing pressure on energy and water resources, according to a new report that calls for stronger policies linking both areas. The study argues that future datacenter growth will depend not only on access to advanced technology but also on how efficiently facilities manage power consumption and water use.
The report, titled Scale and Secure: Powering Europe’s Digital Sovereignty, was published by Grundfos, a Danish provider of water and energy-efficiency solutions. It highlights how datacenters have evolved into critical infrastructure supporting Europe’s digital economy while also creating challenges related to resource management, environmental sustainability, and technological independence.
According to the report, datacenters across Europe currently operate with an estimated IT load of around 10 gigawatts. That figure is expected to rise sharply to approximately 35 gigawatts by 2030 as demand for AI services, cloud platforms, and digital applications continues to increase. As a result, datacenters could account for between 7% and 9% of Europe’s total electricity consumption by the end of the decade, up from roughly 3% today.
Cooling systems represent one of the largest resource demands within modern datacenters.
The report estimates that cooling infrastructure accounts for nearly 38% of electricity use in an average facility. Water consumption is also substantial, particularly in hyperscale datacenters, where daily usage can reach between 11,356 and 18,927 cubic meters. Such volumes are comparable to the daily water needs of as many as 155,000 households across the European Union.
Researchers warn that rapid datacenter expansion could place increasing strain on local energy grids, water supplies, and municipal infrastructure if growth is not carefully managed.
Poorly planned developments may also trigger resistance from local communities concerned about environmental impacts and resource availability.
To address these challenges, the report recommends integrating water and energy efficiency requirements directly into datacenter governance and planning frameworks. Standardized environmental reporting, improved oversight, and incentives for adopting efficient cooling technologies are among the proposed measures.
The report also suggests governments introduce tax incentives, grants, and green financing programs to encourage investment in technologies that reduce resource consumption.
Another recommendation focuses on improving collaboration between datacenters and district heating networks. Excess heat generated by server facilities could be reused to support local heating systems, although the report notes that regulatory, contractual, and organizational barriers currently limit wider adoption.
The findings come as European policymakers increasingly balance digital transformation goals with environmental sustainability commitments.
As AI adoption accelerates, experts argue that future datacenter expansion must prioritize efficiency and resource conservation to ensure long-term growth without placing excessive pressure on local communities and natural resources.
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