The European electricity market is undergoing a substantial transformation. After years of stagnation, a clear increase in electricity demand is now emerging, driven by electrification and new consumers such as data centers. As a result, the market faces major challenges in ensuring sufficient generation capacity. Recent studies forecast that total electricity consumption in Europe will increase by 40 percent to 50 percent by 2033, driven by accelerated electrification across sectors such as transport, industry, heating and data centers.
Demand from data centers in Europe alone is expected to rise from 10 gigawatts in 2023 to around 35 gigawatts by 2030, representing annual growth of approximately 20 percent, according to McKinsey & Co. As a result, electricity consumption by European data centers could nearly triple from the current level of around 62 terawatt-hours to more than 150 terawatt-hours by the end of the decade. At the same time, this growing demand is facing
