AI expansion in Europe likely to be challenged by water and energy constraints

Efforts by the European Union to lead in artificial intelligence and cloud computing are likely to be affected by water and energy constraints, a new report by Grundfos has suggested.

Efforts by the European Union to lead in artificial intelligence and cloud computing are likely to be affected by water and energy constraints, a new report by Grundfos has suggested.

Grundfos’ report, entitled Scale and Secure: Powering Europe’s Digital Sovereignty, notes that electricity demand from EU data centres is likely to rise from around 3% today to as much as 9% by 2030, which will intensify pressure on existing energy infrastructure, as well as water supply.

‘Clear and predictable’

“Efficiency must be the default for data centre growth,” commented Inge Delobelle, EVP and CEO of Grundfos’ Industry division. “Clear and predictable policy frameworks should guide decisions and speed up investment in proven systems that reduce water and energy consumption. That way we support responsible growth that safeguards local resources.”

The report, which was produced alongside Alfa Laval and RISE Research Institutes of Sweden, also suggests that the explosive growth of AI is also adding pressure to decarbonisation efforts across the EU.

However, at the same time, the report suggests that Europe is in a position to leverage its influence as a global regulatory leader to build a more resilient and sustainable AI ecosystem.

Among its potential solutions, the report recommends integrating water and energy governance into all data centre performance standards, mandating public reporting of both power usage effectiveness (PUE) and water usage effectiveness (WUE), and streamlining permitting for facilities using best-in-class efficiency technologies.

In addition, targeted incentives to support retrofitting older facilities, along with investment in reclaimed water systems and heat reuse infrastructure, are cited as potential unlocks.

Efficient operation

“The European challenge is not whether data centres should be built but how they are built and how to operate them efficiently,” added Bent Jensen, EVP and divisional CEO for Grundfos Commercial Business Services. “With clear standards, coordinated planning, and the political will to act, Europe can continue to attract digital investment while reducing pressure on scarce resources and securing its digital sovereignty for the future. This is essential for EU to gain a competitive advantage.”

The report draws on research and data from organisations including the International Energy Agency, the European Commission, the European Parliament Research Service, McKinsey & Company and the United Nations Environment Programme. Read more here.

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