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EDITOR IN CHIEF

The Netherlands

Mels Dees

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ANALYSES

EVENTS

EXPERT INSIGHTS

18

50

08

DATA CENTRES AS A STRATEGIC HUB BETWEEN ENERGY AND AUTONOMY

GREEN DATA CENTER CONFERENCE

STIJN GROVE

ALBERTO RAVAGNI, NET ZERO

40 ENERGY MARKET UPDATE STROOMKR8 (Q3 + Q4, 2025)

HIGHLIGHTS GROWTH, COLLABORATION AND URGENCY

12 EUROPE’S AI AMBITION AND THE PHYSICAL REALITY

112 DATA CENTER SECTOR EVENTS

16 NATASCHA GERAEDTS

72 EUROPE’S NEW HUBS

24

PB7

KLAAS KNOT FORMER PRESIDENT OF DE NEDERLANDSCHE BANK

90 AI DATA CENTRE DEVELOPMENT AND POWER AVAILABILITY

36 LEX COORS

CBRE

4

LIFESTYLE

ESSAY

KICKSTART INTERVIEWS

96 UNLOCKING GROWTH IN EUROPE’S DATA CENTER SECTOR SCHNEIDER ELECTRIC

98 THE RAPID REVOLUTION IN DATA CENTER COOLING STULZ

100

DECARBONIZING THE DATA CENTER INDUSTRY IN EUROPE DELTA, UNICA DATA CENTERS, VERTIV

102 LIQUID COOLING IN THE AI ERA DANFOSS, RITTAL, MUNTERS, LEGRAND

26 THE CYBORG ON THE CATWALK

104

66 CAPITAL CROSSES CAPACITY: WHY THE NEW REALIT Y OF DIGITAL INFRASTRUCTURE

ENSURING CONTINUOUS POWER IN AN UNCERTAIN GRID ABB, AVK, ZWART TECHNIEK

106

60

AI-READY INFRASTRUCTURE:

BUILDING THE NEXT DIGITAL HUB:

FINANCING, RISK AND REGULATION IN EUROPE

WHY THE FUTURE OF DATA CENTER GROWTH LIES IN INTEGRATED ECOSYSTEMS

GLOBAL SWITCH, EVERSHEDS SUTHERLAND, NIBC BANK

108

84

HIGH-DENSITY CONNECTIVITY FOR THE AI DATA CENTER ERA

PAINTING THE CLOUD

AFL & COMMSCOPE

110 SMART DATA CENTERS FOR RAPID AI EXPANSION GRUNDFOS, EATON, MERCURY, ROVISYS

112 POWERING DATA CENTERS IN CONGESTED TIER 1 MARKETS HUAWEI, CSB, DREES & SOMMER, ENTERPRISE IRELAND

5

UNLOCKING GROWTH 2026. In Metropolis, 2026 is the year in which the city has become fully dependent on integrated systems. In the data center industry, that year now feels concrete.

Metropolis is a 1927 film by the German director Fritz Lang. It was made at a time when electrification, industrialization, and scale were reshaping cities. The film portrays a city that can function only through continuously operating, technically organized and integrated systems.

At the beginning of Lang’s 2026, the film reads less as a projection and more as a description. The workers in Metropolis do not operate in services or trade, but in energy infrastructure. They keep the machines running that enable everything else. When that system comes under pressure, the city as a whole is disrupted.

For the data center industry, this is a familiar starting point.

This edition of Datacenterd appears at a time when growth is increasingly shaped not by demand alone, but by how systems come together. Unlocking Growth is therefore not about acceleration, but about coherence. This is why it is the theme of this edition and of Kickstart Europe 2026.

“Growth cannot be forced.

It calls for unlocking.”

- MELS DEES

6

INFRASTRUCTURE AS A DETERMINING CONDITION In Metropolis, infrastructure is not a neutral backdrop, but a determining condition for the city’s ability to function. The city exists by virtue of systems that must operate continuously, and by the relationship between infrastructure, its environment, and the systems that enable it. When growth becomes detached from that relationship, the system moves out of balance.

Something similar applies to data centers today. Digital growth is increasingly driven by AI. Compute capacity, data flows, and energy use are converging. What could once be organized separately must now be designed and managed simultaneously. Coherence becomes operational.

Energy is the most visible focal point in this shift.

Availability, grid capacity, and flexibility determine where growth can land. This changes the logic of site selection and planning. Growth no longer follows digital demand alone, but also the structure of the energy system.

This shift directly affects the surrounding environment.

Data centers are part of urban and regional systems in which space is scarce, and interests intersect. Residents, authorities, and grid operators are not only concerned with what is being built, but with how it fits. Acceptance emerges where integration is visible.

Geographically, the picture is broadening as well. Growth has long concentrated around a limited number of European hubs. These remain important, but they are no longer the only contexts in which integrated systems can emerge. New regions come into view, often where space, energy, and infrastructure are organized differently. That opens up other forms of growth. Not by copying existing models, but by adapting them to local and regional systems. Unlocking Growth is not about scale here, but about design.

MELS DEES Editor-In-Chief Photo: Paul Tolenaar

Metropolis shows what happens when a city becomes fully dependent on integrated systems. Not as a warning, but as an observation. Growth remains possible as long as the systems on which it depends continue to function in concert.

That observation is relevant for Europe. Autonomy does not arise from isolation, but from control over infrastructure, energy, and their interdependencies. Data centers are not endpoints in this context; rather, they are connecting elements.

7

STIJN DUTCH DATA CENTER ASSOCIATION

GROVE

DIGITAL WAKE-UP CALL STAGNATION LOOMS WITHOUT STRATEGIC LEADERSHIP We stand at a tipping point in digital development. The urgency is greater than ever, economically, technologically, and geopolitically. Digitalization is no longer an option but an unavoidable reality that determines whether the Netherlands and Europe will participate or fall behind.

Our perspective on digital transformation is therefore one of undeniable necessity: the question is no longer if we will digitalize, but how quickly and with what conviction we will leap into the future. The challenge of our time is to ensure that in this new era we are not merely followers, but architects of meaning. Players who help shape the digital world of tomorrow.

DIGITAL PARADOX The core of the current impasse lies in what I have long

CRUCIAL ROLE OF DATA CENTERS AND THE AI RACE

called the “Digital Paradox.” It is the striking discrepancy

Within this power dynamic, data centers serve as the

between

of

digital backbone. They are no longer stand-alone

digitalization and the insufficient strategic recognition

facilities; they form the heart of our economy and

it receives at the highest levels of policymaking.

the engine of societal progress. The sector has long

Digitalization affects every aspect of our society, from

understood the urgency and is moving forward rapidly.

the efficiency and quality of healthcare and education

It is no longer just about building a data center, but

to national and personal security, and the fundamental

about fully integrating this infrastructure into the

transition of our energy system.

energy system.

Yet in Brussels, this essential foundation is still too often

This means actively contributing to solving grid

treated as a marginal, sectoral footnote. It is viewed as

congestion, utilizing

a “sector,” rather than as the foundation upon which all

sustainability, not as optional extras, but as core

sectors rest.

components of the business model. That is the true

the

all-encompassing

influence

residual

heat,

and

ensuring

scope of the digital backbone, and this understanding This stands in sharp contrast to the strategic

must penetrate political decision-making.

approach of global powers. Both Washington and Beijing have reached the inevitable conclusion that

Data centers are the critical infrastructure that makes a

data infrastructure is a matter of national strategic

sustainable economy possible. Without the computing

competence and economic leadership. They regard

power they provide, every step forward in energy

investment in digital infrastructure as the highest form

efficiency, smart grids, and green technologies will stall.

of statesmanship.

All this culminates in an urgent call for an “AIReady Europe.” The race for leadership in artificial

The hard truth for Europe is that without strong, robust,

intelligence is not a hypothetical future scenario—it is

and future-proof digital capability, no election promise

a reality unfolding right now. Those who control the AI

or policy goal of any upcoming coalition government can

infrastructure, the data centers, and the networks that

truly be realized. Ambitions such as housing development,

deliver computing power gain a decisive economic

accelerating

improving

and geopolitical advantage. By investing early and

education all falter without a solid digital foundation.

decisively in dominant digital infrastructure, the

the

energy

transition,

and

Continued on next page

9

Netherlands and Europe can ensure a competitive

the European Commission in Brussels. We give individual

role rather than becoming dependent on foreign tech

data center companies a collective voice in discussions

giants.

that are vital for their future growth and their role in the economy. This professional collaboration is essential,

Europe’s position in the global AI race is often sobering.

as the industry must act as one to safeguard Europe’s

During a discussion with executives from companies

sovereignty and economic vitality over the next twenty

such as Nvidia and LexCore at the Capacity conference,

years.

the question was raised: how realistic is it for Europe to become number one in AI? While some optimistically rated the chances as a seven or eight, one expert’s blunt

A CALL FOR STRONG LEADERSHIP

response was a three.

This brings us to the crucial message of strategic leadership. Good intentions and analyses are no

That low number is not pessimism but a reflection of

longer enough. To truly make progress, we need an

reality: Europe is too fragmented, lacks coherent and

authority with the power to break through barriers.

accelerating policy, and execution is faltering. If Europe

I continue to advocate for a minister who sees this

wants to seize the opportunity to compete in this

as a top priority, a Minister of Economy and Digital

technological race, it must overcome this fragmentation

Affairs who takes the lead. This minister must be

and speak a unified, powerful language.

able to decisively address urgent bottlenecks such as grid congestion delaying projects, stalled permit

This requires solid management as well as the courage to

procedures, and political divisions that hinder

confront uncomfortable truths. The reality lies somewhere

strategic decisions.

between the optimism of Northern Europe, which scores an eight in certain areas, and the more reserved Southern

Only with such centralized focus can we keep pace

Europe. The challenge is to consolidate these regional

with the rest of the world and maintain our position

strengths into continental momentum.

as a digital hub. A strong authority must ensure implementation and enforcement of a long-term strategy, beyond the daily political cycle.

THE NECESSITY OF PROFESSIONAL COLLABORATION

Another urgent and solvable issue is the shortage

The challenges we face are threefold and converge

of skilled talent. Our message is clear: “Choose

within our sector. We are confronted with a massive

Tech.” Our digital position is fragile if we fail to

geopolitical drive demanding digital sovereignty, an

address the shortage of specialized and trained

unrelenting

constant

professionals: engineers, security experts, data

innovation, and an imperative drive for energy transition

technological

drive

requiring

analysts. The threat is real. In a healthy ecosystem,

and sustainability demanding a radically different

every element must function properly.

approach. Data centers sit at the heart of this perfect storm and must connect all these forces.

This is not only about the tech sector itself; it is about safeguarding our digital sovereignty. We

To withstand this pressure, an unprecedented level of

advocate for strategic openness: we welcome

professional collaboration is required. The evolution

international players because their investments

of our industry association is a clear example. When

and expertise benefit us, but we must also enforce

we started with Kickstart Europe, there were only

clear and firm rules that protect our national and

three comparable data center associations in Europe;

European interests.

today there are twenty-five. This explosive growth highlights the universality of the challenges we face: grid

The people who uphold these rules and maintain the

congestion, bureaucratic permit processes, and chronic

networks are indispensable. Without enough skilled

talent shortages are felt everywhere.

talent, every strategic openness will ultimately lead to dependency.

By coordinating our efforts, we build a professional and unified counterpart for national governments and for

FROM ANALYSIS TO NECESSARY EXECUTION In this rapidly changing world, it is essential that

We

live

in

a

time

when

continuous

analysis,

we continue to connect—not only to network, but

observation, and strategic planning are of the

to set the course. That is why Kickstart Europe has

utmost importance. But now the focus must

become a vital moment for sharing knowledge and

shift toward execution. Good plans are worthless

meeting colleagues. The event is growing because it

without the courage and determination to realize

brings together all facets of the industry: investors

them.

who believe in the sustainability of our model, technological pioneers, and policymakers who set

The sessions and meetings during Kickstart must

the framework.

lead to concrete, bold decisions and swift action.

We gather not just to debate but to decide on the

Kickstart is therefore much more than a trade

future.

fair; it is a place for strategic focus. What is the plan? Where should we direct our efforts? What

Data centers stand at the heart of the innovation

decisions must we make? This year, we are taking an

that must secure Europe’s future economy and

important step in that professionalization with the

sovereignty.

introduction of our new Invest Forum. In a smaller,

identify the obstacles, make decisions, and above

specialized setting, we will dive deeper into the

all: act. The digital future of the Netherlands and

financial aspects of our growth: how can we ensure

Europe is now.

Let

us

therefore

come

together,

that our sustainable ambitions are also financially robust and attractive to capital markets? This kind of depth is crucial, because the future demands models that are both technologically and financially sustainable.

YOUR WEEKLY PULSE ON DIGITAL INFRASTRUCTURE P.S.

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EUROPE’S AI AMBITION AND THE PHYSICAL REALITY TEXT: MELS DEES

Europe speaks with great ambition about artificial intelligence (AI), yet shows a striking reluctance when it comes to the physical reality that makes this technology possible. As Kees Verhoeven summarizes it: “Without its own computing power, AI sovereignty is an empty concept.” That tension runs like a common thread through current European digital policy.

In the European debate on artificial intelligence, concepts such as values, ethics, and regulation dominate. Europe presents itself emphatically as a standard-setter in a digital world that is changing ever more rapidly. That role is neither accidental nor without significance. Legislation on data and AI reflects political choices about privacy, power, and public interests. But according to Kees Verhoeven, this debate remains structurally incomplete, and EU policy is an empty shell as long as it barely touches on the material conditions of AI. Verhoeven is a former Dutch politician and strategic thinker in the field of digitalization. He focuses on European digital sovereignty, AI policy, and the geopolitical significance of digital infrastructure.

In contributions, interviews, and opinion pieces, he consistently emphasizes that artificial intelligence cannot be separated from physical infrastructure.

AI runs on data centers, requires large amounts of energy, high-quality networks, and specialized hardware. Those who fail to organize this foundation cannot pursue an independent AI strategy.

KEES VERHOEVEN Advisor Digital Transformation - Dutch Data Center Association

12

AI IS NOT A NEUTRAL FORCE Verhoeven acknowledges the importance of regulation but

That observation touches on a fundamental question

adds a clear caveat. “Europe is strong at formulating rules,

of power. AI is not a neutral technology that spreads

but weak at organizing scale,” he states. That imbalance

automatically. It concentrates where computing power,

has direct consequences. While other power blocs treat AI

data, and capital come together. These are not abstract

as a strategic industry and invest heavily in it, Europe often

factors, but concrete resources in specific locations.

gets stuck on perceived obstacles, policy frameworks, and

Computing power always exists somewhere and always

moral principles.

falls under a legal and political regime. When European governments, companies, and institutions depend on

According to Verhoeven, Europe therefore risks becoming

foreign infrastructure for their AI applications, it goes

little more than a supervisor of technology developed

beyond mere practical dependence. “Then you give up

elsewhere. His warning is sharp: “In that situation, we

control,” he says, “not only over data, but also over the

become an inspection authority for other people’s

conditions under which AI develops.”

technology.”

DATA CENTERS AS STRATEGIC INFRASTRUCTURE In that light, Verhoeven views data centers as essential

His analysis explicitly focuses on Europe as a whole.

and strategic infrastructure. Not merely as commercial

National strategies fall short in a world where AI

facilities, but as power factors in the digital economy. They

development operates on a continental scale. The United

determine where data is processed, where models are

States and China invest not only in algorithms, but in

trained, and who has access to high-quality computing

complete ecosystems of energy, hardware, data centers,

power. Yet in political debate, data centers are often

and talent. Europe, by contrast, is fragmented and hesitant.

reduced to a spatial planning or environmental issue.

That leads to dependence, even when European values

That perspective is understandable, but according to

are well anchored in law. “Rules without capacity do not

Verhoeven insufficient. “Those who see infrastructure only

deliver autonomy,” Verhoeven warns.

as a burden,” he says, “fail to see what is at stake.”

AI FACTORIES AS A LITMUS TEST initiative

but where they will be located, who gets access to the

around AI factories and AI megafactories takes on

computing power, and under what legal and political

special significance. For the first time, Europe explicitly

regime they operate. Without clear choices on location,

acknowledges that artificial intelligence is not only a

energy supply, and governance, this initiative too risks

matter of norms and policy, but of physical capacity. The

dissolving into programs without material impact. In

plan to develop large-scale computing facilities, linked to

that case, European funds ultimately strengthen foreign

energy supply, research, and industry, directly aligns with

infrastructure.

Against

this

background,

the

European

Verhoeven’s analysis.

AI factories therefore form a litmus test for European At the same time, this initiative makes visible where the

consistency. If Europe truly regards AI as a strategic

tension lies between ambition and execution. “It’s not just

technology, these facilities must be treated as critical

about how much money you announce,” says Verhoeven,

infrastructure, not as isolated innovation projects or

“but where the machines actually end up.” The question

national prestige objects.

is not only how many AI factories Europe wants to build,

13

AI CANNOT EXIST WITHOUT ENERGY AI policy inevitably intersects with energy policy. Artificial

legitimate. But he warns against a politics of denial. When

intelligence requires enormous amounts of electricity and

infrastructure is structurally blocked without alternatives,

stable grid capacity. This is no longer a technical detail,

the consequences do not disappear. They shift elsewhere.

but a political consideration. When AI is presented as a

“Then that computing power takes place somewhere else,”

key technology for economic growth, public innovation,

he says, “outside your sphere of influence.” In that scenario,

and security, the underlying conditions must be explicitly

Europe loses not only economic opportunities, but also

addressed. “You cannot say that AI is crucial,” Verhoeven

control over sustainability, security, and governance.

argues, “and then pretend that the conditions will arise on

Politicians must make a realistic weighing of interests and

their own.”

speak openly and honestly about it.

Verhoeven

understands

public

resistance

to

data

centers and large-scale infrastructure. Concerns about sustainability, land use, and energy consumption are

THE NETHERLANDS AS AN ILLUSTRATION OF A EUROPEAN PATTERN In discussions about the Netherlands, Verhoeven uses a similar framework. He points out that the Netherlands has strong digital connections, knowledge institutions, and a central position in European networks. At the same time, the national debate shows how quickly strategic infrastructure can be reduced to a local conflict. According to Verhoeven, this is not a typically Dutch problem, but a European pattern. “We discuss nationally something that is in reality European,” he notes. That mismatch hampers consistent decision-making.

EUROPEAN COHESION AS A PREREQUISITE Verhoeven’s argument is not about competition between

Notably, he does not frame his plea as an unrestrained

member states, but about European cohesion. AI

technological arms race. Human-centered AI, public

development requires cooperation between research,

values, and democratic oversight remain essential. But

industry, government, and infrastructure stakeholders.

even those ambitions require a material foundation. “Values

Without such ecosystems, Europe remains dependent

without power are vulnerable,” he says. “Ethics without

on external platforms. “Fragmentation is our weakness,”

geopolitics are powerless.” Without its own infrastructure

Verhoeven states. “Structural cohesion and cooperation

and therefore real influence, European norms depend on

are our only chance.”

the willingness of others to respect them.

14

THIS IS ABOUT POLITICS, NOT TECHNOLOGY In doing so, Verhoeven explicitly places AI within a

Europe faces a choice that can no longer be postponed.

geopolitical framework. Technology is power, and power

Either it invests deliberately in the physical foundation of

is exercised not only through regulation, but through

digital autonomy, or it accepts dependence and names it

ownership and control of resources. “This is not a future

honestly. “Dependence is also a choice,” Verhoeven says,

scenario,” he emphasizes. “This is happening now.” Those

“but then you must stop pretending to be autonomous.”

who fail to make choices about infrastructure today

Without its own computing power, AI policy ultimately

accept dependence tomorrow.

remains mostly paper.

The core of his analysis revolves around political

Sources: Opinion articles, interviews, and essays by Kees

consistency. Europe cannot be ambitious about AI while

Verhoeven on digital sovereignty, AI policy, and digital

being hesitant about its physical conditions. Data centers,

infrastructure, published in outlets including Computable,

energy, networks, and AI factories are not side issues, but

FD, NRC, DDA, and on European policy platforms (2023–

part of the same dossier. “AI strategy and infrastructure

2025).

policy are two sides of the same coin.”

15

NATASCHA EVERSHEDS SUTHERLAND

GERAEDTS

UNLOCKING DATA CENTER GROWTH IN THE NETHERLANDS OVERCOMING GRID, ENERGY AND PERMITTING CONSTRAINTS Due to its geographical position the Netherlands remains one of Europe’s most strategic digital gateways. In recent years the growth of data centers has been increasingly constrained by structural bottlenecks. Main bottlenecks are grid congestion, land scarcity, complex permitting regimes and long timelines. Despite these challenges, a path forward does exist.

GRID CONGESTION: A CORE STRUCTURAL CHALLENGE

PERMITTING COMPLEXITY AND SPATIAL PLANNING

Severe grid congestion remains the single largest impediment

Permitting remains difficult, not only in Amsterdam, which

to new data center development. With the exception of a few

has imposed for now a moratorium on new data center

smaller regions, grid congestion exists in the most part of the

construction,allowing only pre‑approved projects to proceed.

Netherlands. In some regions, the grid is effectively full until

At the provincial level, authorities such as the Province

at least 2035, preventing connections for both new facilities

of Noord‑Holland and the ODNZKG (Omgevingsdienst

and expansions of existing ones. Under the NOVI 2030

Noordzeekanaalgebied)

framework, hyperscale data centers are limited to designated

environmental and energy requirements to ensure data

zones such as Eemshaven and Agriport A7, one reason being

center developments align with regional sustainability goals.

that grid capacity and spatial impact can here be better

Authorities demand that data centers are nicely integrated

controlled. To unlock general growth of data centers the

in the surrounding landscape. As a result, their owners

Netherlands needs coordinated investments in expansion of

and developers are asked to submit detailed landscape

electricity infrastructure. As of 1 January 2026, new measures

integration plans. In order to achieve clear permitting

have come into force to accelerate physical expansion

processes while maintaining environmental safeguards,

of the power grid. These include a standard tolerance

early alignment between developers, municipalities and

obligation for preparatory work requiring landowners to

provincial authorities remains key and is especially today

grant access. All measures focus on shorter (permitting)

the best option to successfully achieve development.

emphasize

strict

spatial,

procedures and allowing construction to begin earlier.

ENERGY AND SUSTAINABILITY REQUIREMENTS

A PATH FORWARD

Beyond connection limitations, the data center sector faces

Unlocking data center growth in the Netherlands hinges

high energy costs and increasingly stricter environmental

on a combination of aspects. By accelerating national

rules. Dutch data centers are among the most energy‑efficient

grid upgrades, optimizing permitting frameworks and

in Europe, supported by technical innovations in cooling,

collaboration of all parties involved, the Netherlands

use of waste heat and renewable sourcing. There is public

can preserve its position as a resilient, sustainable digital

scrutiny around water usage, carbon intensity and spatial

hub. It can then accommodate the rising demands of

impact and this remains strong. All these reinforce a need

AI, cloud computing, and the broader digital economy.

for clean‑energy procurement and integration with district heating systems. If we want to enable growth, regulatory flexibility for energy‑efficient operators and long‑term certainty on sustainable power availability is needed.

17

DATA CENTRES AS A STRATEGIC HUB BETWEEN ENERGY AND AUTONOMY TEXT: MELS DEES

Data centres are increasingly being seen as part of

of intensive European working sessions in which

the energy system. “The question is no longer just

policymakers, grid operators and representatives

how much power they require,” says Alberto Ravagni,

of the data centre sector sat down together. Those

CEO of the Net Zero Innovation Hub for Data Centers,

discussions made it clear that the growth of data

“but what role they can play in a system that is under

centres is increasingly colliding with the limits of the

pressure.”

existing energy system, and that traditional solutions no longer offer sufficient guidance.

Strategic autonomy, security of supply and grid congestion are giving this repositioning urgency and

At

casting new light on thinking about grid integration,

thinking

the

same

time, this

back-up and alternative fuels. This shift is therefore

practice. At local level, data centres are mainly

not an abstract policy idea, but the result of a series

assessed as major consumers of energy and space,

remains

European

far removed

from

system-level day-to-day

with a direct impact on grid capacity, water use and the living environment. Municipalities and regional grid operators ultimately decide whether projects go ahead, often largely detached from the broader European context in which the focus is precisely on system integration and resilience.

This tension means that growth in the sector is becoming less and less a technical or economic issue and increasingly a governance one. While Europe explores in working sessions how large digital power demands can be integrated and dependencies reduced, permitting procedures stall and grid connections fail to materialise. “As long as data centres are assessed locally solely on what they draw from the system,” Ravagni argues, “and not on their role in the wider system, policy and practice

Alberto Ravagni

will continue to move past each other.”

CEO Net Zero Innovation Hub for Data Centers

18

NO SHARED PERSPECTIVE According to him, the core of the problem is not a lack

system that is increasingly reaching its limits. It quickly

of ambition, but the absence of a shared perspective

became clear that the problem lies not solely in capacity,

between policymakers, grid operators and the sector. It is

but in design and governance.

precisely the translation of European system thinking into workable practice that now forms the focal point of the

The European energy system is designed for predictable,

discussions being held in Brussels and beyond.

incremental growth, while data centres scale up in leaps.

These two logics are colliding ever more frequently. As a

That translation has become the central theme of talks

result, grid congestion is no longer a temporary bottleneck

between policymakers, grid operators and the data

but a structural constraint on growth. For many decision-

centre industry. In several sessions, representatives of the

makers, access to timely, clean energy has become more

European Commission, transmission system operators

decisive than market demand or the availability of capital.

and market players came together to examine how data

The traditional model of develop first and connect later is

centres can be structurally integrated into an energy

proving increasingly inadequate.

REVIEW OF REGULATION This approach calls for a fundamental review of regulation,

European debate on energy security and geopolitical

grid codes and responsibilities. It also highlights how

dependency. In discussions with policymakers and grid

energy supply has shifted from an operational issue to a

operators, greater attention is therefore being paid to the

strategic topic at board level.

role that alternative fuels can play alongside the electricity grid. “The grid cannot be the only solution everywhere and

Within this system thinking, the position of alternative fuels

at all times,” Ravagni argues. “Certainly not in the short

is also changing. Hydrogen and other green molecules were

term.”

long seen mainly as experimental or future solutions within the sustainability agenda. Now the discussion is shifting

This

has

direct

implications

for

how

back-up

is

towards concrete deployability. “Until recently, hydrogen

approached. Diesel generators are technically reliable,

was viewed almost exclusively through the sustainability

but increasingly difficult to defend socially and from a

lens,” says Ravagni. “A second perspective has now been

regulatory perspective. At the same time, they represent

added: strategic autonomy.”

an enormous amount of idle capacity. “Worldwide, we have thousands of megawatts of back-up capacity that

Clean fuels are increasingly seen as locally producible

is only used in emergencies,” he says. “From a system

energy sources and therefore as alternatives to imported

perspective, that is inefficient.”

fossil fuels. This makes them relevant in the broader

19

STRIVING FOR A COMMON LANGUAGE The European working sessions made it clear that the

cycles, investment decisions and legal frameworks within

parties involved have long operated in parallel worlds.

which transmission system operators operate. This lack

Policymakers, grid operators and data centre operators

of shared understanding translates directly into delays,

each reasoned from their own logic, with different time

uncertainty and suboptimal choices on both sides.

horizons and definitions of risk. “Everyone is hitting the same wall,” says Ravagni, “but for a long time we were not

That is precisely why the conversation is shifting from

speaking the same language.”

individual connections to system integration. Data centres possess assets that, if properly regulated, can add value

According to him, this mutual misunderstanding is not a

to the energy system. Think of back-up capacity, storage,

reproach but an observation. The European Commission

predictable load and, in some cases, heat off-take. “As

often has an insufficient understanding of how data

long as you continue to see data centres purely as end

centres function technically and operationally. Grid

consumers, you limit the conversation,” Ravagni states. “If

operators face the same gap. At the same time, the reverse

you view them as system components, space opens up for

also applies: the sector has limited insight into the planning

different solutions.”

20

A NEW ROLE FOR BACK-UP SYSTEMS Alternatives such as hydrogen, green methanol and other

constraining factors. This requires a different mindset

clean fuels offer, according to Ravagni, the opportunity to

from both data centre operators and policymakers. “We

transform back-up from a necessary evil into an active part

are used to reducing everything to megawatts on the grid,”

of the energy system. Not only as an emergency provision,

says Ravagni. “But the system is becoming more hybrid,

but potentially also as a flexibility or balancing instrument,

while regulation is not yet keeping pace.”

provided regulation and grid codes allow it. Collaboration with organisations such as Hydrogen Europe focuses on

Notably, neither the major US players nor the European

defining realistic boundary conditions. “The question is

companies

not whether hydrogen is the solution,” he emphasises. “The

sustainability ambitions. Despite geopolitical tensions,

question is under what conditions it can be a meaningful

scepticism about sustainability and increasing pressure

solution.”

on energy supply, none of the leading hyperscalers has

in

this

debate

have

abandoned

their

rolled back its climate targets. “It is sometimes suggested What is becoming increasingly clear in the European

that sustainability is under pressure,” says Ravagni. “We

discussions is that the future energy system for data centres

do not recognise that picture at Net Zero. American

is likely to consist of multiple energy carriers. Electricity will

companies too, which participate in our platform, remain

remain dominant, but will be complemented by molecular

fully committed to their net zero goals.”

energy forms where grid capacity, timing or location are

21

RESILIENCE AND SUSTAINABILITY REINFORCE EACH OTHER The difference is not that sustainability is disappearing, but

and grid access. In many countries, a strict first come, first

that additional requirements have been added. This shift

served principle still applies. This places serious, well-

is mainly about resilience. Security of supply, continuity

capitalised data centre projects in the same queues as

and energy independence have explicitly become part

speculative applications. “On paper, those applications

of strategic decision-making. “Resilience is sometimes

are equal,” says Ravagni, “but in practice the difference is

presented as the new sustainability,” says Ravagni. “That is

enormous.”

not how I see it. It is not a replacement, but an addition. We have to deliver both at the same time.” For internationally

According to him, this is not a marginal issue but a structural

operating companies, this means that energy supply is no

system flaw that undermines investment certainty and

longer optimised along a single axis. Costs, CO₂ reduction,

complicates grid planning. At the same time, planning

security of supply and geopolitical dependency are

remains commercially sensitive. Full transparency is not

increasingly assessed in combination.

realistic, but without some degree of predictability, system planning remains impossible. The challenge lies in finding

Regulation plays a dual role in this context. Where rules

an intermediate form that enables joint planning without

were long seen mainly as a brake, there is now exploration

disclosing commercially sensitive information.

of how simplification and better alignment can actually accelerate progress. Two issues recur repeatedly: planning

STRIVING FOR CONSISTENT POLICY Although European system thinking is gaining momentum,

The repositioning of data centres as system components

local reality remains decisive. Data centres have become

does not mark an end point, but a beginning. Not all

visible and therefore political. The benefits of digital

the answers are there yet, but the conversation has

infrastructure are felt nationally or at European level,

fundamentally changed. “As long as we continue to see

while the burdens are borne locally. This asymmetry fuels

data centres as end consumers,” Ravagni concludes, “we

resistance. Heat reuse, grid investments and cooperation

will keep fighting symptoms. Only when we recognise them

with municipalities can help, but they require time and

as part of the system can we build structural solutions.”

consistent policy. Water use is emerging as the next issue in this regard.

22

DRIVING INNOVATION, GROWTH, AND SUSTAINABILITY REQUIRES CLOSE COORDINATION ACROSS MULTIPLE ECOSYSTEMS. The Net Zero Innovation Hub focuses on pilot projects and the validation of innovative solutions through a collaborative approach involving data center industry leaders, the innovation ecosystem of small and large enterprises, and academia. It also works closely with European and global industry associations, including EUDCA (European Data Centre Association) on policy-related topics, Euroheat & Power on heat reuse, Hydrogen Europe, and ENTSO-E (European Network of Transmission System Operators for Electricity).

To make innovation around sustainability and energy integration more tangible, the hub recently launched the Net Zero Start-up Hub - a flagship initiative of the Net Zero Innovation Hub for Data Centers and the Danish Data Center Industry (DDI), organized with Business Fredericia, DTU and Google, headquartered in Fredericia, Denmark.

The program brings six carefully selected international and Danish start-ups together for a 6-month incubation period designed to connect early-stage innovators with industry partners, energy systems, and real-world test environments, helping promising technologies move from concept to implementation.

According to Ravagni, initiatives like these primarily help to reduce implementation risks. By linking start-ups to industrial reference frameworks and practice-oriented feedback, promising technologies can move more quickly into design and decisionmaking processes at data centre operators.

23

FROM THE REPUBLIC OF LETTERS TO THE DIGITAL SOCIETY TEXT: MELS DEES

At the DLA Piper Technology Summit in Amsterdam

“When the Nobel Prize in Economics was awarded

in early November, Klaas Knot, former President of

this October, one of the laureates was the American-

De Nederlandsche Bank, emphasized that the same

Israeli economist Joel Mokyr,” Knot began his

principles of open knowledge-sharing that fueled

address. “In Culture of Growth, Mokyr describes how

the Industrial Revolution are just as crucial today for

the Industrial Revolution was not so much the result

building a resilient digital society.

of individual inventors, but of a network of scientists, engineers and philosophers who freely shared their knowledge.” Mokyr calls this network the Republic of Letters: an international community of thinkers who exchanged letters, shared ideas and sharpened each other’s intellect.

This culture of knowledge-sharing, collaboration and open debate formed the foundation of the Industrial Revolution, Knot said. “Without that network, Mokyr argues, technological progress would have unfolded much more slowly. It was the free exchange of ideas— enabled by the invention of the printing press—that truly set innovation in motion.”

Today, once again, we stand at the beginning of an era in which technological change is fundamentally reshaping our economy and society. No longer driven by steam or steel, but by data, connectivity and computing power. The data centers, networks and digital infrastructures of today form the backbone of our digital society. And just as before, real progress does not arise in isolation, but through cooperation.

Klaas Knot Former President of De Nederlandsche Bank

24

THE IMPORTANCE OF STABILITY Knot noted: “In the financial world, we often talk about

However, Knot warned: “We are seeing another trend

stability: the capacity of systems to absorb shocks.” In the

globally. Geopolitical tensions, protectionism, climate

digital world, stability means something similar: continuity,

change, state-sponsored cyberattacks and technological

security and resilience within an ecosystem that never

dependencies are driving fragmentation. These tensions

sleeps. Data centers play a central role in this. They are the

push countries apart and elevate national interests above

heart of our digital infrastructure, keeping communication,

cooperation. This threatens financial stability.”

payments, logistics, healthcare and public services running. Yet this deep interdependence also means that

The same holds true for digital ecosystems. When data

risks can spread quickly. A disruption, cyberattack or

flows are restricted, standards diverge, and collaboration

power issue rarely affects just one party: entire chains can

falters, we lose not only efficiency, but also trust. And

be impacted.

without trust, innovation stalls.

The lesson of the Republic of Letters therefore remains

Digital infrastructure is, by definition, cross-border. It

relevant, Knot’s remarks suggest: knowledge-sharing is the

can only truly flourish when knowledge, standards and

foundation of resilience. By communicating openly about

innovations can circulate freely—just as ideas once did in

vulnerabilities, incidents and innovations, we collectively

the Republic of Letters.

build a stronger digital foundation.

THE DATA-CENTER VERSION OF THE REPUBLIC OF LETTERS The community of data center professionals, IT specialists

In the years ahead, technologies such as artificial

and policymakers forms, in a sense, a modern version of

intelligence, quantum computing and edge infrastructure

that republic: a network of experts exchanging knowledge

will again change the way we work. This demands not only

across borders on security, sustainability and innovation.

technological agility, but also shared values: transparency,

That collaboration is not optional. In an era in which data

cooperation and responsibility.

forms the backbone of our economy, cooperation is also a We cannot predict how quickly these developments will

form of responsibility.

unfold, but we do know they will not exist in isolation. Every Every improvement in security, energy efficiency or

data center, every provider, every engineer is part of a

interoperability strengthens the whole. The strength of

larger whole: the digital nervous system of our society.

this modern community lies in its openness. By sharing

Knot recognized a clear parallel: “As the Nobel Prize for

insights—whether about incident response, sustainable

Joel Mokyr reminds us, curiosity, pluralism and intellectual

cooling or the application of artificial intelligence—we

cooperation are essential for a healthy society. Turning

prevent innovation from becoming fragmented and

away from these values puts the benefits of sustainable

ensure that progress is collectively driven.

growth at risk. Open collaboration and knowledge-sharing are the foundation of a stable, sustainable and innovative digital future.”

New European regulations, such as NIS2 and DORA, require organizations to strengthen their digital resilience. This demands effort, but above all, it creates opportunities.

Klaas Knot served as President of De Nederlandsche Bank

These frameworks provide a shared language of reliability

(DNB). During his presidency, he also chaired the Financial

and make cooperation easier. Like the scientific standards

Stability Board and played an active role in the Governing

of the eighteenth century, they establish clarity about what

Council of the ECB, the IMF Board of Governors, the

we may expect from one another. Rather than hindering

European Systemic Risk Board and the Board of Directors

innovation, they form a necessary precondition for

of the Bank for International Settlements. This text is a

sustainable growth.

rendering of a speech delivered by Knot at the DLA Piper Technology Summit in Amsterdam.

25

THE CYBORG ON THE CATWALK TEXT: MELS DEES

What happens when couture and technology meet? In Chanel’s data center show, human and machine, craft and algorithm, reality and image merged into one. The cyborg was no longer fiction, but a form of elegance.

When Karl Lagerfeld presented his new Chanel collection on October 4, 2016, at the Grand Palais in Paris, the audience saw no marble staircases, no mirrors, and no sea of flowers.

Instead, they looked out at rows of servers and bundles of brightly colored cables. “Models dressed in haute couture and sometimes wearing a robot helmet walked down a stark white runway, set against a backdrop of colorful ethernet cords and server racks,” wrote Wired.

The Guardian noted that “the scale of the set gave the sense that the computer world was something alien rather than everyday.”

It was as if the backstage of the internet, normally a sterile and invisible world, had suddenly become the heart of fashion. Lagerfeld, the German designer (1933–2019) who led Chanel from 1983 onward, described the set as “something of our time... the idea of the modern woman, whatever the time, the century or the circumstances.” And he continued: “It is not technology in a cold way, it is ‘intimate technology’... armor for the outside world... something much more refined for the private world.”

26

27

28

WHERE HUMAN AND MACHINE MEET The space breathed the language of infrastructure: order, rhythm, and symmetry. Yet a certain sheen remained, a sense of precision and control that had as much to do with couture as with data technology. The show revealed no opposition between human and machine, but rather an unexpected sense of connection.

Afterward, Lagerfeld told Reuters: “Imagine your life without the telephone, and the next step will be artificial intelligence and robots.” The sentence sounds more like poetry than logic, because the emergence of AI does not automatically follow from the impossibility of living without a phone. In logical terms, this is a non sequitur: the conclusion does not necessarily follow from the premise.

Yet that error contains something essential. Lagerfeld did not reason like a philosopher but like a designer of emotions. For him, technology was not a break with the human, but its extension, an ornament of modern life.

ELEGANCE AS A FORM OF INTELLIGENCE His data center set made that idea visible. The cables, servers, and lights became new forms of couture in which Chanel’s “intimate technology” did not fear the future but seduced it. The catwalk seemed to whisper: even in a world of algorithms and data, elegance remains a form of intelligence.

The German philosopher Walter Benjamin (1892–1940), who studied the relationship between art and technology, wrote in his essay The Work of Art in the Age of Mechanical Reproduction that modern technology diminishes the aura of the artwork—that unique glow of authenticity once bound to time and place. On Lagerfeld’s catwalk, that loss seemed to be restaged as a ritual. The metal cabinets and screens were arranged as altars to a new faith: that of the reproducible image. Everything was carefully choreographed, endlessly photographed, and shared. The aura returned, but as projection, a constructed illusion of authenticity within a fully artificial space.

29

THE CYBORG AND HER FREEDOM The American thinker Donna Haraway (1944–), known

In that light, Lagerfeld’s show was more than a stylistic

for her feminist ideas, would read that same moment

experiment. It formed a visual dialogue between two

differently. In her influential A Cyborg Manifesto, she

eras: Benjamin’s world of lost aura and Haraway’s

describes the cyborg as a being that breaks down

world of fusion. Where one still mourned the distance

boundaries between human and machine, nature and

between real and fake, the other found freedom in its

culture, reality and representation. The cyborg is not

disappearance.

afraid of the lie of the artificial; she is that lie and thus That freedom is a form of growth. It is the moment

becomes more truthful than any ideal of purity.

when something closed opens and a new space of robot,

meaning emerges. Lagerfeld’s data center did exactly

embodied that idea literally. They moved through a world

that. It unlocked the hermetic world of technology for

of fiber optics and steel, as icons of a hybrid humanity:

imagination and showed that infrastructure itself can

elegant, composite, and digitally entwined. His “intimate

grow when seen as art.

Lagerfeld’s

models, part woman

and

part

technology” became a cyborg aesthetic, a fashion that functions as an interface between body and machine, between the tangible and the functional.

THE VISIBILITY OF THE INVISIBLE In Lagerfeld’s set, two worlds met that rarely see each

There was more to see in Lagerfeld’s set than irony or a

other: the world of visibility and that of infrastructure.

conceptual wink. The metal cabinets and cable bundles

Fashion lives from what is seen, from the surface that

possessed their own unexpected beauty, a sheen that

speaks. Data centers, on the other hand, belong to the

did not come from luxury but from order, rhythm, and

realm of the unseen, built to function without revealing

light. Chanel’s data center did not reject the fear of

themselves. By placing the machine room of the cloud

technology but opened a new aesthetic: that of the

inside the Grand Palais, Lagerfeld made the invisible

functional sublime. The machine room of the internet,

visible and the visible strange.

usually closed and cold, became a place of color, form, and almost ritual elegance.

At the same time, he played with a second paradox.

Couture is still handwork, the result of human precision and touch, while its setting was the ultimate visualization of automation. Thus a mirror image of our time emerged: the digital world, which depends on human labor, and the fashion world, which draws from the aesthetics of the mechanical.

30

31

32

33

LAGERFELD AS AVATAR Perhaps that was Lagerfeld’s most far-sighted gesture.

Not that he predicted the future, but that he recognized the poetry within the technical itself. Where Benjamin lamented the loss of aura and Haraway exposed the lie of the pure, Lagerfeld showed that beauty has shifted. It no longer resides solely in the human face, but also in the gleaming surface of the machine.

Reactions were divided, but rarely indifferent. Many spectators spoke of the sensation of a future that had already arrived. According to The New York Times, “the future of luxury shimmered in the glow of LED light,” while Vogue called it “a catwalk full of paradoxes.” Others saw in it a quiet meditation on our dependence on the digital. The Guardian wrote that Lagerfeld “had given the computer world a soul” and praised his ability to show technology not as a threat but as a context for beauty.

For some, the space itself felt like a philosophical statement. The catwalk, usually a stage for fleeting images, became an infrastructure of connections. The models did not walk through a fictional future but through the physical interior of our digital culture. In that experience, between glamour and cabling, the distinction between interface and identity seemed to dissolve. What remained was the echo of a thought: that the cyborg has long been among us—not as metaphor, but as daily reality, elegantly dressed in tweed.

And perhaps her creator stood among them. Lagerfeld, with his white hair, dark glasses, and immaculate silhouette, seemed less a man of flesh and blood than an avatar of his own imagination. In the light of the data center, surrounded by the rhythm of cables and screens, he became one with the universe he had designed: a designer who had translated himself into code, a human icon who understood the digital age long before it recognized itself.

And who showed us that even in the most technical of environments, something human continues to shine.

34

35

LEX EUDCA

COORS

THE AI INFRASTRUCTURE CHALLENGE The rise of Artificial Intelligence is often discussed in terms of software and algorithms. According to

Lex

Coors,

Chief Datacenter Technology &

Engineering Officer at Digital Realty, this represents a fundamental error in thinking. AI is not an IT project; it is a geopolitical infrastructure challenge that touches the very core of our society. In a world balancing a technological arms race with climate ambitions, Coors calls for a radical overhaul of how we design, regulate, and value data centers.

AI IS NOT AN IT PROJECT, BUT AN INFRASTRUCTURE CHALLENGE

DESIGNING FOR CHANGE

Discussions regarding data centers are often clouded by

The next generation of data centers must be designed

a lack of realism concerning our digital dependency. “AI is

fundamentally differently to accommodate the growth of

not an application, not a hype, and not an IT project. AI is

AI. Coors identifies a shift toward three core principles:

an infrastructure challenge,” Coors states. He emphasizes that the demand for data centers will continue to grow

MODULAR

unabated due to cloud computing, cybersecurity, AI, and

Since building 200 MW or 1 GW all at once is unrealistic in

eventually quantum computing. This is not a matter of

Europe, growth occurs in phases, typically in steps of 20

opinion, but a direct consequence of how modern society

to 50 MW.

functions.

SCALABLE Nearly every daily activity, from online banking and booking

Designs must accommodate change, transitioning from

travel to energy management and security systems, runs

today’s GPU-driven AI workloads to future neuromorphic

through a data center. Coors considers the idea that we

or hybrid computing.

can function without these facilities unrealistic: “Anyone claiming we don’t need data centers is effectively saying we

ADAPTIVE

should return to 1940. Ironically, that would probably lead

Infrastructure must remain efficient at both low and

to higher total energy consumption, not lower.” According

extremely high loads, as energy consumption is non-linear.

to Coors, the real question for Europe is whether we are prepared to make the necessary choices to maintain our autonomy over data, AI, and security.

Continued on next page

37

THE EUROPEAN PARADOX: AUTONOMY VERSUS SCALE

THE HARD LIMITS OF GROWTH

Europe positions itself as a champion of human-centric

Despite this visionary outlook, the sector currently faces an

and ethical AI, but lacks the global-scale hyperscale

acute planning problem. Electricity demand is exploding

infrastructure required to operate fully autonomously.

due to AI, while European grid expansion is insufficient

Coors is pragmatic about the path forward: “Wanting

to fully accommodate this growth. Coors believes that

to do everything ‘European’ sounds attractive, but it is

while Small Modular Reactors (SMRs) are theoretically

economically and technologically unrealistic”.

interesting, they will not be available at scale until the 2030s. And according to Coors Hydrogen is currently not

Instead of isolation, he advocates for a model where

a realistic solution for baseload power.

global hyperscalers are truly regionally anchored. This means establishing them as full-fledged entities with

This forces the industry and policymakers to make difficult

local responsibility and headquarters in Europe, rather

choices. Natural gas could serve as a bridge solution, but

than mere satellite locations. Furthermore, he warns that

this requires a mature societal discussion regarding energy

Europe’s tendency to rely solely on regulation will stifle

autonomy and environmental impact: “These are not easy

innovation. A global dialogue at the G7 level is required,

choices, but the alternative is to look away — and that is

including players from Asia, to prevent geopolitical

also a choice”, states Coors.

blocking from slowing down progress. According to Coors, the alternative is Europe vs the rest: “Until global pragmatically on a bilateral basis, without abandoning its

CONCLUSION: UNLOCKING GROWTH THROUGH QUALITY

core values.”

According to Coors, the term ‘Unlocking Growth’ should

agreements are in place, Europe will have to operate

no longer be interpreted as simply building more, but as choosing smarter. In recent decades, growth was primarily

THE SEVENTH WAVE: FROM DATA STORAGE TO BIOLOGY

quantitative (megawatts and square meters). The next

Looking ten to twenty years ahead, we enter what Coors

is flexible, energy-conscious, and governable within a

calls the ‘Seventh Wave’. In this scenario, the foundation

complex geopolitical world. “For the sector, this means

of data centers shifts entirely. While current global digital

working more closely with governments, being more

storage is estimated at 120 to 150 zettabytes, this pales in

transparent about impact, and recognizing that data

comparison to the potential of biological storage.

centers are now critical social infrastructure. Growth

phase demands qualitative growth: infrastructure that

without this recognition will not lead to acceleration, but Coors explains this: “The potential of biological storage

to resistance.”

is immense: the DNA of the world’s population can theoretically contain 52,000 zettabytes of data, which is

Those who continue to invest in storage as the core function

nearly 400 times more than all current digital storage on

are investing in infrastructure that is already conceptually

Earth combined. In this Seventh Wave, biological storage

obsolete. The future of the sector lies in recognizing that

introduces a theoretical capacity that exceeds today’s

data centers are critical societal infrastructure. Coors

global digital storage, forcing a fundamental rethink of what

finishes with “Unlocking Growth is not about running faster,

data centers are for. Data centers will not disappear, but

but about making smarter choices — and accepting that

their function will change radically: from bulk storage to

not every form of growth is automatically the right one.”

‘meaning-infrastructure’. Strategic value will no longer lie in petabytes or square meters, but in cognitive orchestration, synchronization, and collective truth systems.”

FOR A MORE IN-DEPTH READ, SCAN THE QR CODE

In this insightful book, Lex Coors advocates for skipping traditional AI development stages to directly engage with the 7th wave of AI, focusing on human-AI synergy. By integrating Hod Lipson’s AI evolution framework and Jeff Lichtman’s neuroscientific findings, the book outlines a future where AI enhances human abilities and ethical considerations guide AI Integration. “We Are AI” argues for a transformative approach that aligns AI with human values and societal needs, emphasizing responsible innovation and the potential of emerging technologies to augment human cognition and collective well-being.

40

ENERGY MARKET UPDATE

Stroomkr8 is an independent energy consultancy company. They support their clients on all kinds of energy sourcing activities, from strategic/conceptual matters to daily and operational practice. They buy and sell energy for their clients in 17 different countries with a team of highly experienced colleagues within both supply companies and consultancy.

More information: www.stroomkr8.nl

41

With 2026 underway and the new energy landscape developing, utilities have an even greater strategic focus on data centers. Therefore, we will share our view on the energy markets to help you understand the energy triggers and provide support to your procurement decisions and asset management. In a world of volatile prices, fragile supply chains, and shifting climate policy, the ability to understand and act on market signals can make or break your energy strategy.

This update report covers the most critical developments from January through December 2025 and looks ahead to 2026. The central question:

HOW DO DATA CENTERS STAY IN CONTROL OF COST, RISK, CAPACITY AVAILABILITY, AND CONTINUITY IN TODAY’S TURBULENT ENERGY LANDSCAPE?

42

At this time, more suppliers are securing positions in large-scale storage facilities to mitigate risk over the coming years, as 2025 has seen imbalanced prices in the Netherlands peak again. Primarily due to the introduction in October 2024 of Picasso in Europe to settle grid frequency imbalances across several countries. In addition to rising imbalanced prices, trading in this market has become riskier as Regulation State 2 becomes increasingly common. Suppliers (BRPs) usually only know after the fact whether Regulation State 2 was present, rather than 0, -1, or 1. This means BRP’s (suppliers) costs are much higher under Regulation State 2. Therefore, the more often Regulation State 2 occurs, the higher the total costs will be for suppliers in the passive imbalance market.

IMBALANCE - CONDITION RULE 2

AANTAL

9107

5895

2682

2023

2024

2025

The crucial role of renewable electricity in the overall equation has secured its place in the European electricity mix. In 2025, solar panels and wind turbines accounted for at least 39% of annual electricity production in the Benelux area.

The Netherlands Environmental Assessment Agency (PBL) expects this to rise to 65% by 2030. To achieve this target, approximately 11.5 GW of wind turbines and 4 GW of solar panels must be added. For comparison, peak electricity demand in the Netherlands is approximately 19 GW an hour on a day, and approximately 15 GW at any hour on weekends.

The current outlook from Dutch banks for economic growth in the Netherlands is cautious, expecting moderate growth of 1.0-1.5% in 2026, driven by consumption but held back by global uncertainty, trade tensions, and lingering inflation.

Institutions like Rabobank and DNB project modest expansion tempered by ongoing economic headwinds.

The December 2025 price drop in energy could have played a major role in the higher projection; unfortunately, not many companies could profit from these lower energy prices, as they had already locked in for 2026.

43

POWER MARKET 2025 began with elevated electricity prices, driven by high

With new European Union legislation to introduce ETS2

gas prices, low wind turbine production, and uncertainty

for smaller gas users, carbon prices have been most

about winter 2025 storage levels. This drove the spot

affected this year. Carbon prices are a major driver

market to an average level of €111/MWH in the first quarter

of costs for gas-powered electricity production. The

of 2025. An average in 2025 of approximately €88/MWh

uncertainty surrounding the introduction of ETS2 has

for spot against the €77/MWh in 2024, an increase of €11/

kept the market in a strong lock, with carbon prices in

MWh, showing that spot is not always the best decision.

a bullish trend since the summer. Driven by production companies trying to claim EUAs for their own use and

Global electricity use continues to grow at a structural

speculative players to gain financial results. Investors

rate in 2026, with projections of ~4% annual growth

in these markets are common, but they do carry risk, as

through 2050, driven by electrification, AI, and digital

long-term and short-term developments can be volatile.

infrastructure. Data centers operate on a steady 24/7

As of the end of 2025, the market indicated that investors

baseload profile, which gives them a strong market

held long positions, expecting prices to rise in Q1 2026.

position and beholds the risk of the ever-shrinking capacity availability. As we mentioned during the Green

At year-end, that was the main bullish factor for electricity,

Datacenter Conference, supply is not capacity, and no

as gas dropped towards €26,07/MWh and carbon stayed

capacity is no supply. And today’s market behaves like

steady in the mid-80s. Electricity held at €78/MWh,

anything but steady, with a range of €22,58/MWh (for a

indicating that carbon plays a major role in the electricity

data center with 50GWh annual usage, about €1,13 mil. risk)

market and warrants close monitoring in 2026.

between high and low prices in 2025 for 2026, holding massive competitive advantages in decision making and

With the market still in backwardation, power prices offer

keeping a good insight into market developments.

opportunities for long-term hedging. Are you ready to react swiftly to market opportunities? Once again, market

With the start of 2025, we encountered high gas prices

development underscores the importance of having

as a barrier to electricity prices. At that time, gas was

supplier contracts in place to respond to positive price

trading at €44.60/MWh, with a carbon-emission price

movements. Across Europe, many companies still focus

of €86/Tonne, resulting in a 2026 electricity price of

on a one- to two-year horizon, while markets offer price

€96.70/MWh. As we are all aware, trade tariffs, escalating

data for up to five years. It could be smart to connect

war zones, and overall uncertainties have resulted in no

your supply contract to the maximum market horizon to

clear direction across any market. After the winter, we

capture any opportunities.

saw one great opportunity to lock competitive prices when gas dropped in April towards €32/MWh, carbon on €69/Tonne, resulting in a power price of €74.12/MWh, the lowest possible price this year for Y+1.

44

EPEX

POWER FUTURES

45

GAS & LNG Although gas demand in Europe rose by +6.5% in H1

On that note, many suppliers have built up storage

2025, the market is convinced that Europe has found a

reserves at a price close to the spot average of €35/MWh,

way without Russian gas to secure enough volume to

and current prices are well below this level. This results in

cover winter demand for heat. Strong LNG flows towards

losses when using the gas storage to supply end users.

Europe from the U.S. and other countries have provided

This is not sustainable for supply companies to maintain,

traders with the room to build buffers that should cover

and could lead to an unwillingness to meet winter 26/27

peak demand and secure long-term supply, with the

demand. With weather being the main concern for gas

expectation that from 2027 the LNG supply will increase,

and winters becoming more unpredictable, the past

resulting in the current backwardation in the market.

benefit of having storage is becoming a risk.

As we see in many situations where the market is

For the long term, the opportunity to secure relatively low

comfortable, disruptions will happen, and the current

gas prices exists, with the market in backwardation and

price levels could be considered as bottom prices with

the trend bearish. Many large industrial manufacturing

this much positivity in the market on long-term supply.

companies are active in long-term contracts. Securing a

With this, we touch on the risk topic, adjustment in LNG

price that was considered good even before COVID.

supply planning, like the U.S., that is experiencing a high domestic gas price and could review to keep the LNG

As always, the gas market has been turbulent, driven by

for its own use to cut recession prognoses or trade wars

a relatively long and cold winter at the beginning of 2025

emerging once again, and impact financial results. All in all,

and ending in a significant price drop by the end of 2025

you need to be aware that currently we are experiencing

due to warmer weather and a favorable supply outlook

many positives.

from Norway and LNG.

TTF SPOT

46

For the long term, the opportunity to secure relatively low

demand. Although the energy deal does not mention

gas prices exists, with the market in backwardation and

LNG specifically. Together with sustainability programs

the trend bearish. Many large industrial manufacturing

in Europe, the general focus would foresee a drop in gas

companies are active in long-term contracts. Securing a

demand in Europe in the coming years.

price that was considered good even before COVID. But once again, we could expect gas prices to jump at As always, the gas market has been turbulent, driven by

any time if supply chain problems (US or Norway) occur,

a relatively long and cold winter at the beginning of 2025

temperatures drop, or cross-border issues disrupt supply

and ending in a significant price drop by the end of 2025

chains.

due to warmer weather and a favorable supply outlook from Norway and LNG.

Because data centers do not directly consume much natural gas, the focus on this product remains low;

Still, LNG flows from the US keep the traders at ease, and

however, the impact of its development is significant and

they expect that with the European deal with the US about

warrants close attention.

energy imports, there should be no problem covering

GAS FUTURE

47

CARBON MARKET (EUAS) A market that will be more important in the coming

Energy markets received early support from colder

years. Just a quick reminder, EU Allowances (EUAs)

and calmer mid-December weather forecasts, but the

are EU emission rights within the European Union

continued ample gas supply quickly reversed these

Emissions Trading System (EU ETS), the world’s largest

gains. Coal prices closed slightly higher. Technical

carbon marketplace, which makes sure companies are

signals remain mixed, with bearish momentum in the

limited on their carbon emissions and obliges them

short term.

to buy or sell allowances for each tonne they emit, incentivising investment in carbon reduction. For 2026,

With the UKA-EUA spread widening further. Traders

the combination of the UK marketplaces UKA and EUA

said the UK-ETS market remained primarily driven by

is still planned to proceed. The first major companies in

low liquidity and general weakness in energy and EUAs,

ETS1 were industrials with high annual gas usage (above

with limited domestic news from the UK.

100 GWh) at a single connection point. The European Union has expanded coverage to include aviation,

UKA’s also followed the rally, with the December

maritime shipping, and, soon, buildings/transport

contract rising by more than 2% to £54.25, an eleven-

through the new EU ETS-2.

week high. Trading was marked by sharp buying, with prices continuing to rise to peaks. Despite some

In Q1, EUAs reached their highest level, only to drop

resistance, the UK market showed clear resilience after

before summer’s end, then rose again to their highest

a slow summer and maintained its close correlation

level by the end of 2025. EUA prices in December were

with the EU ETS.

at €82/Tonne, with the market remaining tight between the key strike prices for the December options. The

ETS OUTLOOK

unchanged settlement was interpreted by traders as a

Analysts have raised their price forecasts for EUAs

signal that the market is waiting until option expiration,

through 2030, citing tighter supply and structural

resulting in limited movement. Despite the flat trading,

market tightness. A range of €90–100 in 2026 and €130–

participants noted that EUAs remain relatively firm

145 by 2030. The short term remains volatile due to high

compared to gas and power.

auction volumes and low demand, but the structural trend is bullish. Strategic purchasing and monitoring policy developments are therefore recommended.

EUA

48

GENERAL As U.S. tariffs have not shown a downward trend in

reduction plans and growth in new areas such as AI, and

growth projections, it seems that markets are finding

ensure it works for us rather than against us.

ways to adjust to higher prices. The U.S. plan for Europe remains less involved, forcing European decision-

How strong this feeling is, we fear that, due to political

makers to be self-supporting in many areas where we

choices and financial pressures, much of it will not

would normally rely on the U.S., creating room for a new

come to pass. One of the major concerns is the

plan on the world stage. How politics will address the

constraints on grid connections, access to capacity,

contradictions between growth and greater renewable

and the willingness to invest to support growth. With

awareness will be an important topic in 2026.

the new energy law commencing in 2026, the playing field will shift, and new market players will test the

For 2026, we really hope the war in Ukraine will end

opportunities it creates. Hopefully, this will help resolve

and a period of rebuilding can start. In all, this will

some of the congestion issues, but it does not provide

be a positive flow for tensions on the world market,

a solution. Everyone will need to review whether they

with oil prices dropping, coal becoming less popular,

are able to provide something to the system to make

and renewable energy gaining position in the world.

it future-proof.

Let’s make a meaningful impact by proceeding with

ENERGY OUTLOOK For 2026, the problems with grid congestion will remain

will need significantly more capacity. The grid capacity

just as valid as they are now and might become even

options can and should be investigated further in

more problematic. The Dutch new energy law will

2026, and cooperation with others may be essential to

provide more room to see if partnering with other

develop solutions that have not been available to date.

companies or grid operators results in solutions for short-term or long-term growth of your business.

Energy markets provide room to secure beneficial electricity and gas prices where needed. Waiting for the

New investments will be influenced by these solutions,

lowest price will most likely result in disappointment as

and grid stability will keep the market in a strong

markets are unpredictable.

gridlock. If AI is to grow in the Netherlands, all companies

For a designed version of this report or to adapt it for internal briefings, contact your energy strategy advisor.

49

GREEN DATA CENTER CONFERENCE HIGHLIGHTS GROWTH, COLLABORATION AND URGENCY TEXT: MELS DEES

During the opening of the Green Data Center Conference / Fiber Vakdag, DDA director Stijn Grove and Andrew van der Haar, Managing Director at the Fiber Carrier Association, emphasized the growth of the ecosystem and the urgency of joint action.

Grove opened by noting that the event had once again broken a record. He said that “750 people are coming together to talk about the future of digital infrastructure,” which shows how rapidly the sector is growing despite the societal debates surrounding it.

According to Grove, digital infrastructure is now “central to virtually all political and economic issues,” from energy and spatial planning to innovation and security. This, he explained, is exactly why this conference matters: “We must ensure that our energy supply keeps pace and that we accelerate the rollout of sustainable solutions.”

Van der Haar added that collaboration between the sector, government and policymakers has intensified significantly over the past year. In his view, the digital economy does not stand still, regardless of political uncertainty: “It simply moves forward.” Both speakers stressed that this year’s conference is broader than ever.

SHARED RESPONSIBILITY Grove

pointed

out

that

provinces,

ministries

and

even

European

representatives are in attendance. He said that “the shared task is enormous” and that it is therefore essential to discuss “how we can combine the growth of digital infrastructure with sustainability and the scarcity of space and energy.”

Van der Haar described innovation as “the core of the sector,” something that must take shape both technologically and in collaboration.

The speakers concluded their introduction with the message that the day is about finding common solutions. Grove put it as “looking at how we can take steps together so that growth, sustainability and public acceptance do not have to be at odds with one another.”

50

51

52

53

EUROPE SEEKS STRATEGIC DIRECTION IN DIGITAL INFRASTRUCTURE In a discussion moderated by Kees Verhoeven, Michiel

Boots replied that the ministry has been working on this

Boots, Director General for Economy and Digitization

agenda for years and said that “the digital economy is so

at the Dutch Ministry of Economic Affairs, and Peter

central to our prosperity and security that you can no

Stuckmann, Head of Electronic Communications Policy at

longer speak of a separate digital sector.” He explained

the European Commission, explored how the Netherlands

that the Netherlands has broken down the entire digital

and Europe aim to strengthen their digital position in an

value chain into layers and emphasized that Europe is

increasingly polarized world.

dependent on external suppliers in nearly all of them.

Referring to recent events, he said: “If the US government

Verhoeven opened by noting that Europe is “under

can intervene in the services of a major tech company

pressure from tech powers like China and the US” and that

overnight, we have to ask ourselves how resilient Europe

digital dependencies are stacking up from raw materials

truly is.”

to AI services. He asked Boots why the Netherlands is pushing for digital open strategic autonomy.

LET RULES TAKE EFFECT IMMEDIATELY IN AL MEMBER STATES Stuckmann picked up on this from a European perspective.

vulnerable. We do not want to be naïve.” He stressed that

He said that “technology is evolving extremely fast and

Europe must build its own positions to avoid becoming a

we are increasingly running into our own dependencies.”

pawn between the US and China.

According to him, the EU wants the Digital Networks Act to establish a single, directly applicable regulatory framework.

Stuckmann added that strategic autonomy is about holding

“We need to move away from transpositions that take

critical segments in your own hands: “You do not need

years,” he said, “and toward rules that apply immediately in

to be the global leader in everything, but you must have

all member states. That makes us more agile.”

enough capacity to walk away from the negotiating table.”

He pointed to strong European telecom operators, but also noted that Europe “must catch up in AI ecosystems.”

Verhoeven asked how Europe can remain open while also reducing dependencies. Boots acknowledged that tension and said: “Openness is our strength, but it also makes us

LESS DEPENDENCE ON AMERICA When Verhoeven

shifted

the

discussion to digital

Stuckmann

linked

this

to

the

European

Gigabit

infrastructure, Boots became more pointed. He called

Infrastructure Act. “Permits must be granted within four

digital infrastructure “the nervous system of our economy”

months,” he said, otherwise the rollout of fiber and 5G will

and said that the Netherlands needs to communicate

fall behind. On data centers, he explained that Europe aims

that more clearly. “People want less dependence on the

to promote best practices that enable green investments:

US,” he said, “but they do not want a data center in their

“We want more energy-efficient networks, but we also

own region. That is hard to reconcile.” He emphasized

want to make it possible to finance them.”

that limited space, energy, and grid capacity are putting pressure on the digital agenda.

54

INNOVATIVE INFRASTRUCTURE Asked where Europe should stand in 2030 or 2040, both

The conversation made clear that digitalization is no

speakers outlined a shared ambition. Boots said that

longer a technical issue but a geopolitical roadmap. Boots

“Europe should not become a pawn” and must build its

and Stuckmann agreed that Europe must become more

own technological positions. Stuckmann said success

agile, less dependent, and more innovative. The coming

means that “Europe integrates networks, cloud, and edge

years will be decisive for the continent’s strategic position.

into an innovative infrastructure supported by multiple member states, not just one.” He added: “We need to develop leadership instead of importing it.”

55

56

57

GROWING BEYOND THE GRIDLOCK During a panel discussion on energy and data centers,

Zierkzee recognizes that necessary shift and reflects on

Stijn Grove opened with the central question that has

the days when growth was mainly a matter of choosing

occupied the sector for years: how do we break through

locations and reserving connection capacity in time.

the gridlock of an overloaded power grid, and how can

“That’s no longer the case.” Grid congestion is forcing

data centers continue to grow?

data centers to redesign their strategies. He calls it “learning to look differently.” Instead of giving every data

He summed it up succinctly when he said: “Without

center its own connection, Digital Realty is now exploring

power there are no data centers, without power there

whether clusters can be linked, for example by jointly

are no data centers and no fibers.” The urgency is clear,

connecting at a higher grid level. This creates room to

and the table is filled with representatives from every

move up to TenneT instead of remaining stuck at 20 kV. It

link in the chain: Bart van der Laan from Alliander,

opens opportunities to link both new infrastructure and

Koenraad Zierkzee from Digital Realty and Rik Marsman

local energy sources.

from Vattenfall.

For Vattenfall, Marsman sees that the same problems Van der Laan immediately identifies what he sees as the

faced by data centers also apply to energy producers.

biggest obstacle. “The combination of legislation and

“If you want to build a wind or solar farm or a battery

regulation, but also simply execution capacity,” he says.

storage facility, you also need a connection, which

To change anything, he argues, “we have to re-examine

doesn’t just happen.” He makes clear that flexibility in

everything we’ve built over the past hundred years.”

contracts and collaboration with customers is a crucial

Flexibility must become the new standard.

step.

An important question is how existing assets, such as backup power installations, can help relieve grid

“LEARNING TO LOOK DIFFERENTLY.”

congestion. Van der Laan did the math: “In the MRA region there is about 450 megawatts of backup power capacity. All of it next to the grid.” He cites the example of Enkhuizen, where a single customer with 1.5 megawatts of capacity “by running a maximum of 70 hours a year” was able to resolve 54 percent of the waiting list. It shows there is potential, but that regulation often gets in the way.

WHEN REGULATIONS HINDER INNOVATION Zierkzee also recognizes the regulatory hurdles. “At times

Van der Laan points to the rise of energy hubs, where

it seems as though the regulations were designed not to

companies actively collaborate on infrastructure and

make things too easy,” he says, referring to the creation of

investments in CHP units, batteries and other energy

private grids or restructuring existing connections. Still, he

assets. Data centers can play a key role in these hubs. He

sees clear progress. Different worlds are coming together

envisions them in five years as “a kind of decentralized

and beginning to understand each other better.

energy plant that also happens to produce data.”

58

DATA CENTERS AS DECENTRALIZED POWER PLANTS Zierkzee hopes that in five years the sector will no longer

The discussion ends with a shared conclusion: the puzzle is

be viewed primarily as a problem. “That we are seen as

complex, but the direction is clear. Growth is only possible

part of the solution.” Marsman looks ahead to closer

through new connections, new forms of collaboration and

cooperation between suppliers, grid operators and data

a broader view of what a data center is and can be. As Stijn

centers, especially in large innovative projects. If there is

Grove summarizes: “Much more integrated, with a clear

earlier visibility into what will be needed three to five years

understanding of who needs to be where.”

from now, the energy sector can anticipate rather than having to make ad-hoc adjustments each time.

59

BUILDING THE NEXT DIGITAL HUB WHY THE FUTURE OF DATA CENTER GROWTH LIES IN INTEGRATED ECOSYSTEMS TEXT: STIJN GROVE

Over the next two decades, economic leadership

An important starting point is nuance. Not all future

will no longer be defined by ports, pipelines, or

growth will, or should, take place in large clusters.

logistics hubs alone, but by digital infrastructure.

Standalone data centers will continue to play a

Data centers are central to this shift. They are no

role and can function as integrated energy assets

longer peripheral real estate assets but foundational

in their own right. When intelligently connected to

infrastructure underpinning artificial intelligence,

generation, storage, heat reuse, and grid-balancing

cloud services, digital industry, energy systems,

mechanisms, a single facility can actively support the

and national security. Wherever data centers scale

energy system while hosting digital workloads. This

effectively, innovation follows.

model will remain relevant for regional, industrial, or specialised use cases.

The Netherlands has long been a frontrunner in this domain. Early investments in connectivity, internet

At

exchanges, and high-quality data center locations

indispensable. They are the only scalable way to align

positioned the country as one of Europe’s most

digital growth with energy infrastructure, spatial

important digital gateways. That position, however,

planning, connectivity, and long-term investment

is under increasing pressure. Global demand for

certainty. The future of the Netherlands as a data

computing capacity is accelerating rapidly, driven

center

by AI, data-intensive industries, and geopolitical

integrated

fragmentation,

fragmented development.

while

space,

power

availability,

and permitting constraints are tightening. The key question is therefore not whether the Netherlands should expand its digital infrastructure, but how.

60

the

system

hub

level,

depends

however,

on

ecosystems

clusters

deliberately

rather

than

are

building

relying

on

FROM INDIVIDUAL SITES TO ECOSYSTEMS Historically, data center development followed a reactive

targeted investments, power generation and consumption

model: securing a location, applying for a grid connection,

can be integrated, and connectivity providers, cloud

and connecting to existing infrastructure. That model

platforms, and research institutions gain confidence to

breaks down in an AI-driven era, where a single campus

co-locate. This creates genuine digital ecosystems rather

can require hundreds of megawatts and long-term

than isolated facilities.

power guarantees. Energy systems, grids, and permitting frameworks are not designed to absorb this scale project

International experience is clear: global data hubs emerge

by project.

where infrastructure, policy, and market incentives are consistently aligned. Where alignment is absent, capital

Clusters

change

this

dynamic.

By

and workloads move elsewhere.

concentrating

development in strategic locations, infrastructure can be planned proactively. Grid reinforcements become

61

62

63

ENERGY AS A FOUNDATION, NOT A CONSTRAINT Energy is often framed as a limiting factor, but in reality

Beyond

it is the foundation for future growth. Data centers are

contribute to energy system efficiency. Waste heat can

consumption,

data

centers

can

actively

predictable, long-term consumers, making them well

be reused for industrial processes, district heating or

suited to anchor renewable-based energy systems.

controlled agriculture. Backup systems can transition from diesel to hydrogen or other low-carbon solutions.

Cluster-based development enables direct coupling

Load management and flexibility services allow data

between data centers and energy production. Locating

centers to support balancing markets. These integrations

capacity

hydrogen

are technically feasible at the level of individual facilities,

infrastructure, or future baseload generation reduces

but they become economically and operationally scalable

pressure on transmission networks and accelerates

only when embedded in clusters designed for that

investment in new supply. Long-term power purchase

purpose.

near

offshore

wind

landings,

agreements support renewable bankability, while the steady demand profile of data centers enhances grid

In this sense, clusters do not compete with the energy

stability.

transition; they enable it. They turn digital infrastructure into an investment vehicle for energy infrastructure rather than a perceived burden on the system.

STRATEGIC AUTONOMY IN A FRAGMENTED WORLD Data centers have become strategic assets. Compute

centers to coexist within a coherent system, allowing

capacity, AI models, and data flows are increasingly shaped

intelligent workload distribution, built-in resilience, and

by geopolitical pressures and regulatory divergence.

reduced dependence on single locations or jurisdictions.

Europe’s ambition for digital autonomy cannot be realised without sufficient, well-located domestic capacity.

Without adequate domestic capacity, investments in AI, quantum technologies, and advanced manufacturing risk

The Netherlands is well positioned to play a central role,

remaining theoretical. Compute is a strategic input, and

but only if it continues to offer scale, resilience, and

clusters are the mechanism that aligns strategic control

connectivity. Clusters enable different types of data

with market-driven growth.

GOVERNANCE AND PREDICTABILITY Technology alone does not create hubs; governance

transparent

frameworks

for

connection,

expansion,

does. Fragmented decision-making, unclear timelines, and

and sustainability. Several European countries already

uncertain grid access increase risk and deter long-term

recognise large data center projects as strategically

investment.

significant infrastructure. The Netherlands does not need to copy these models, but it must offer comparable clarity

Cluster development requires orchestration rather than

and speed. The role of government is not to finance

central planning: designating suitable locations, aligning

data centers, but to ensure that infrastructure systems,

grid operators and permitting authorities, and providing

regulations and timelines are aligned.

64

CHOOSING TO LEAD The Netherlands stands at a crossroads. Doing nothing is

but clusters are essential at the system level. They

not neutral; capacity that cannot be built domestically will

provide the scale and coordination needed to align digital

be built elsewhere, along with the associated innovation

infrastructure with energy transition goals and long-term

and strategic influence. At the same time, poorly

economic strategy. By embracing data center and energy

integrated growth undermines public trust and strains

clusters as core national infrastructure, the Netherlands

energy systems.

can ensure that digital growth strengthens sustainability, resilience, and strategic autonomy—and continues to lead

The path forward is deliberate, integrated growth.

rather than follow.

Standalone facilities will remain part of the landscape,

65

CAPITAL CROSSES CAPACITY THE NEW REALITY OF DIGITAL INFRASTRUCTURE TEXT: MELS DEES

A series of conversations with leading figures

infrastructure,” he said. “Stable, predictable, low

across the digital infrastructure landscape raised

risk. By contrast, fiber experienced a massive

several fundamental questions: how do you unlock

investment wave after Covid, but rising rates and

growth in a market where capital is becoming more

inflation have changed the rules of the game.”

expensive, energy is scarcer, and technology is advancing faster? The discussion spanned every

Many companies that borrowed heavily between

layer of the sector, from financing structures to

2020 and 2022 to expand are not reaching their

data centers and artificial intelligence, revealing

expected penetration levels. As a result, capital

how financial discipline, technological innovation,

flows

and

the money has not disappeared; it simply has

market

dynamics

increasingly

shape

one

are

shifting.

Kleinjans

emphasized

that

new priorities. “Capital seeks quality,” he said.

another.

“And right now, we are finding that mainly in data According to Jeroen Kleinjans, head of digital

centers.” To him, this is not a sign of caution but

infrastructure financing at ING, the sector is

of maturity. Growth is once again grounded in the

moving at different speeds. “The tower sector,

fundamentals of infrastructure: stable cash flows,

the construction of telecom towers, is now classic

long-term contracts, and predictable demand.

66

SMALLER PURPOSE-BUILT STRUCTURES A similar picture was outlined by Pascale Labrecque,

operators to raise inexpensive capital without giving up

managing

no

operational control of their assets,” she explained. “It is

tightening but a clear professionalization. “The age of

not just financial engineering; it is a way to unlock capital

mega-consortia is over. We now see smaller, purpose-

and enable growth.”

director

at

DigitalBridge.

She

sees

built structures that can manage risk better and optimize returns.” According to her, this shift marks the transition

Edward Rubin, managing director of TMT Investment

to a new investment phase in which scale is replaced by

Banking at Goldman Sachs, also recognized this trend.

precision.

According to him, digital infrastructure is following the same path other capital-intensive sectors have taken.

New structures play a central role in financing that

“The tower sector was the first to mature,” he said. “Then

growth. Labrecque pointed to the rise of Asset-Backed

came wholesale and retail data centers, cross-connects,

Securities (ABS) as an effective instrument. An ABS

and eventually dark fiber.” Successful financing, Rubin

bundles stable cash flows from existing contracts,

explained, depends on correctly matching duration and

such as data center leases or fiber capacity, into a

returns. “The length of the capital must fit the lifespan

separate financing vehicle. Those cash flows then

of the asset. That is the essence of sustainable growth.”

serve as collateral for bonds sold to investors. “It allows

CABLE, FIBER, AND DATA CENTERS BECOMING ONE ECOSYSTEM Meanwhile, the value chain itself is undergoing a silent

Victor

transformation. Where subsea cables, fiber networks,

Infrastructure, sees this merging as evidence that the

and data centers once operated as separate domains,

sector has entered a new phase. “We are coming out

they are now merging into one integrated ecosystem

of a decade of rollout, fiber to every home and towers

built on scalability, reliability, and connectivity. Investors

in every network,” he said. “Now begins the phase of

no longer assess individual assets but the network as a

efficiency, consolidation, and renewal.” For him, this is not

whole. Capital no longer follows a single project but the

a slowdown but a necessary shift. “The first investment

layer of infrastructure that will support future demand.

wave laid the foundation. Now it is about optimization.”

67

Pons

Mesman,

CEO

of

Fibre

and

Data

A DIFFERENT ROLE FOR BANKS According to all speakers, this reorientation is visible in

At the same time, innovation remains the sector’s

the way capital is organized. Labrecque described it as

engine. The increasing intertwining of technology

a shift from growth for growth’s sake to growth through

and infrastructure creates new investment models.

structure. Banks, investors, and operators must work

Labrecque noted that netcos and yieldcos, legal

more closely together than ever. Kleinjans added that

structures that separate operational risks from stable

this also means banks are taking on a different role. “We

assets, continue to prove their value. “By structuring

no longer finance only the construction phase,” he said.

capital flows, you create room for new investments,”

“We look at the entire lifecycle of an asset: the contracts,

she said. “We can distribute risks and deploy capital

the cash flows, the energy security.”

more efficiently.” Rubin added that this model not only brings financial stability but also room for growth.

Rubin saw in this the contours of a mature market. “The

“The securitization of stable assets gives developers

relationship between infrastructure and return has

breathing space to keep building. It keeps the sector

fundamentally changed,” he said. “It is no longer about

agile, even in a higher-interest environment.”

rapid expansion but about sustainable returns. Investors want to know that a project will continue operating even when market dynamics shift.”

INTEGRATED PORTFOLIOS Kleinjans pointed out that this transformation also reflects a shift in investor mentality. “Where we once looked at individual projects, we now finance platforms,” he said. “An integrated portfolio of networks, cables, and data centers is more attractive than a single asset. The synergy between those layers determines the value.”

As financial structures become more refined, the geographic focus also shifts. A clear catch-up is visible in Europe. Pons Mesman expects 2026 to be a turning point. “The investment wave that began in the United States is now rolling into Europe. Increasing amounts of American capital are flowing into the European infrastructure market.”

Streamer:

“Banks base credit decisions on energy security.”

The energy component is becoming crucial. Kleinjans warned that banks increasingly base credit decisions on energy security. “A data center without reliable power supply loses its infrastructure character,” he said.

“Energy is no longer a secondary condition but a core requirement.”

68

AI PUSHES CAPACITY TO ITS LIMITS Technology, meanwhile, is accelerating faster than ever.

Kleinjans said that AI is also changing how financiers

The experts agreed that artificial intelligence is currently

assess risk. “We do not finance speculative AI projects,”

the sector’s main growth driver. Ugne Kleinauksaite,

he said. “But we do invest in data centers and networks

responsible for global connectivity strategy at Meta,

with

explained that demand for capacity is growing so

Enterprise cloud platforms with AI options fit that profile

quickly that infrastructure constantly risks falling behind.

perfectly.”

long-term

contracts

and

multiple

tenants.

“Forecasts sometimes change three times a week,” she said. “Every time we build something, we hear that we

Rubin added that the impact of AI extends beyond

already need more.”

the data center itself. “Growth in chip density, power consumption, and cooling is creating new industries,”

This is why Meta invests proactively rather than reactively.

he said. “Training AI models requires enormous capacity,

“We do not want to be the bottleneck for innovation,”

and the transition to inferencing will drive another surge.

Kleinauksaite said. “Our infrastructure must always

This is not a hype; it is the next growth phase.”

stay one step ahead. Our return does not come from direct profit but from enabling growth.” Pons Mesman

Labrecque warned against overconfidence. “AI offers

recognized this strategy. His company usually builds

enormous opportunities, but the projects are too large

on a contract basis but is willing to invest in strategic

to build on speculation,” she said. “We work more closely

locations where demand is predictable. “In corridors

with customers and share risks. We only build once we

like Madrid to Paris, we know multiple parties will follow,”

know the demand is there.” The era of “build it and they

he said. “We consciously take on a bit more risk there.”

will come” seems definitively over. As Rubin summarized: “The sector has become too mature for guesswork.

Growth is real, but it must be financed responsibly.”

69

GEOGRAPHIC AND TECHNOLOGICAL TRENDS CONVERGING As Europe prepares for an acceleration of investment,

said. Kleinjans agreed. “As a standalone project, it is too

Asia

concentrated a risk, but within an integrated portfolio it

focuses

on

reducing

the

distance

between

works well.”

infrastructure and users. China is prioritizing practical AI applications and placing compute capacity closer to the end user. Kleinauksaite illustrated this with a simple

Rubin highlighted an example of financial innovation in

example. “If someone has to wait twelve minutes for an

this segment. “Cogent Communications used its IPv4

AI video to render, they will not use it. The experience

and IPv6 addresses as collateral for a securitization,”

must be instantaneous. That means capacity must move

he said. “They raised capital without undermining

closer to the user.”

profitability. It shows that even something abstract like IP space can represent tangible value.”

The conversation then shifted to emerging asset classes beyond traditional infrastructure. Subsea cables

Labrecque

and IP addresses are becoming new sources of value.

underestimated but can be decisive in consolidation

Labrecque argued that subsea cables remain attractive

processes. “Whoever owns the IP owns the power,”

but mainly as part of a broader portfolio. “Barriers to entry

she said. “It determines who controls the customer

have fallen, but that makes it harder to differentiate,” she

relationship in B2B markets.”

70

noted

that

IP

networks

are

often

SUFFICIENT CAPITAL UNDER THE RIGHT CONDITIONS By the end of the discussion, the tone was realistic yet

For Pons Mesman, the direction is clear. “Investing in

optimistic. The consensus was clear: there is abundant

digital infrastructure is investing in the global economy

capital available, but it is waiting for the right conditions.

itself,” he said. “It represents not only data but also

Kleinjans spoke of strong tailwinds but also fundamental

growth, employment, and innovation.”

requirements. “The sector benefits from digitalization, but we cannot forget the basics: power security, tenant

The experts agreed that the coming years will be

quality, contract length.”

decisive. The shift from fiber to data centers, the influence of AI, and the continued refinement of between

financing structures mark the beginning of a new chapter

supply and demand continues to grow. “Demand for

in the digital economy. Digital infrastructure is no longer

capacity is rising faster than we can build. That creates

just a technical sector; it is the financial backbone of

opportunities but also forces focus.” Rubin added that

the modern world. As the market matures, one principle

discipline remains key. “There is a lot of money on the

remains: growth is unlocked by aligning capital with

sidelines, but it will only be deployed if the conditions

capacity, and pairing discipline with vision.

Labrecque

emphasized

that

the

gap

are right.”

71

EUROPE’S NEW HUBS TEXT: PETER VERMEULEN

72

It has become common practice to split the

Around 2020, the market entered a new phase,

European data center market landscape into tier-

as hyperscale cloud providers started to roll out

1 and tier-2 markets. Tier-1 markets are Frankfurt,

edge, or more accurately, metropolitan strategies.

London, Amsterdam, Paris, and Dublin (FLAP-D),

They started rolling out data centers for every

while tier-2 markets include Milan, Madrid, Zurich,

metropolitan area large enough to justify the

Warsaw, and Vienna. If we want to identify new

investment. As a result, the so-called tier-2 and

growth markets, there is a tendency to look at

emerging tier-2 metros started to grow. Yes,

the growth potential of tier-2 markets and the

congestion in the FLAP markets shifted some

emergence of new tier-2 markets, all competing for

customers to other metros, but the cloud’s metro

the same workloads.

rollout was the driving force.

The reality is, as usual, much richer. The FLAP

While we are in the middle of the edge/metro roll-

markets emerged in the 1990s, driven by the

out, AI swooped in, creating a perfect storm of data

Internet. Frankfurt, London, and Paris were home

center investments. The first wave of AI is “training

to the largest connected IT user communities: the

heavy” and shares many characteristics with the

financial sector. Amsterdam had a reasonably strong

hyperscale cloud wave. As a result, the Nordics

financial sector but benefited most from a first-

are gaining strength in the overall data center

mover advantage as the first European location to

market. But there are also differences: by 2025,

connect to the Internet. Data and networks attract

renewable power is abundant across many places

data and networks, and as a result, these four

in Europe, and cooling can also be done efficiently

locations have long dominated the European data

in warm countries, especially – but not limited to

center market.

– liquid cooling. With much of it stranded due to a lack of transport capacity, this creates unique

With the rise of cloud computing (2008-2012), the

opportunities, especially where international and

data center market shifted radically. The hyperscale

intercontinental connectivity is strong.

market arrived. And while these hyperscalers wanted to be close to the big data hubs, they

Amid grid congestion and AI’s power demand, which

began building massive data center hubs in remote

countries are emerging as Europe’s new hubs?

locations with cheap, renewable power and cool

We’ve made a list. For now. Because it will not take

climates to reduce cooling demand. Campuses

too long before the AI inference wave will swoop in

emerged in the Nordics, the Benelux, and Ireland as

in full force. Let’s start in the North.

a result. Since a concentration emerged in Ireland, the D for Dublin was added to FLAP, creating FLAP-D. At Pb7 Research, we see this as a historic error.

73

NORWAY Norway continues to strengthen its status as Europe’s

traditionally associated with the region. This improved

most mature renewables-driven digital infrastructure

interconnection,

hub. With an electricity mix composed almost entirely

considerations and the rise of AI training workloads that

of low-carbon hydro power, the country offers some

do not require metro proximity, has pushed Norway

of the continent’s lowest CO₂ footprints per MWh,

into the center of Europe’s energy-centric data center

making it increasingly attractive for power-intensive AI

strategy. Grid stabilisation services, battery energy

clusters, HPC workloads, and hyperscale deployments

storage systems (BESS), and innovative heat-reuse

prioritising sustainability. Compared with other Nordic

projects are more prevalent in Nordic markets than

countries, Norway has not had a significant hyperscale

elsewhere, giving Norway a demonstrably higher level of

footprint, but that is rapidly changing. While FLAP

infrastructure maturity for sustainable operations.

combined

with

data-sovereignty

continues to dominate the European colocation market, we see a rapid emergence of new hubs in the Nordics

Despite these advantages, Norway faces challenges that

and Southern Europe—regions where power availability,

mirror those in the rest of Europe: permitting friction,

renewable reliability, and land-use flexibility are far

skills shortages, and local debates about land use and

greater than in congested metropolitan zones.

renewable capacity allocation. But as AI accelerates demand for ultra-dense power configurations and the

Norway also benefits from a wave of new connectivity

adoption of liquid cooling, Norway’s high-capacity,

investments. Over the past several years, expansions

renewables-anchored energy environment positions

of submarine cable systems linking the Nordics to

it as one of the continent’s few locations capable

mainland Europe, the UK, and North America have

of hosting multi-gigawatt AI campuses without grid-

significantly

congestion risk.

reduced

the

latency

disadvantages

74

NORWAY IT POWER 2025

CAGR 2024-2031

COLOCATION

451 MW

26%

HYPERSCALE

10 MW

74%

MARKET

Source: European Colocation & Hyperscale Database 2025v2, Pb7 Research

75

ITALY IT POWER 2025

CAGR 2024-2031

COLOCATION

363 MW

31%

HYPERSCALE

34 MW

45%

MARKET

Source: European Colocation & Hyperscale Database 2025v2, Pb7 Research

76

ITALY Italy is undergoing one of Europe’s most dramatic

Italy’s

transitions from a secondary colocation market to a

dynamics: power scarcity, grid congestion, and

major hyperscale and AI-infrastructure destination.

environmental

The industry is expanding at an unprecedented pace,

accelerating

with data center construction at an all-time high.

regulatory

Combined with significant cloud-region launches

data

by Microsoft, Oracle, and other hyperscalers, Italy’s

development,

growth

efficiency

trajectory now parallels

that

of earlier

rapid

growth

mirrors

obligations investment

coordination.

center

broader are

and

European

simultaneously

requiring

Lombardy’s

directive—encouraging

careful

new

2024

brownfield

heat-reuse

systems,

and

criteria—aligns

with

EU-wide

energyEED

European breakouts like Madrid, Stockholm, and

requirements and reflects a continental push for

Warsaw.

sustainable expansion. Italy also faces a significant skills gap, as do other existing and emerging hubs.

Milan has emerged as a Tier-2 European hub, with more than 70% of the country’s IT power concentrated

Given the rise of AI workloads, hyperscale leasing

in Lombardy. This concentration reflects Italy’s

patterns,

robust enterprise market, major internet exchanges,

Italy is now positioned to become a key Southern-

and increasing subsea-cable connectivity via Sicily,

European aggregation point for both domestic

Bari, and Genoa—routes that integrate Italy into the

demand

Mediterranean backbone linking Europe, Africa, the

combination

Middle East, and Asia. Meanwhile, Rome is becoming

diversity,

the country’s second-largest region, with rapid

evolving regulatory clarity makes it one of Europe’s

growth projected to reach 100 MW by 2029.

fastest-ascending digital-infrastructure markets.

77

and

and

cloud-sovereignty

international of

population

energy-transition

cloud

requirements,

services.

scale,

Its

economic

commitments,

and

PORTUGAL Portugal is rapidly transforming from a modest

notably the multi-gigawatt Start Campus project

regional market into one of Europe’s strategically

in Sines—signal Portugal’s arrival as a destination

important emerging data center hubs. This shift

for hyperscalers, energy-intensive AI workloads,

is driven by a convergence of assets that are rare

and scale colocation developments that cannot be

in Europe: large volumes of affordable renewable

easily accommodated in congested FLAPD markets.

energy,

EUDCA’s 2025 findings reinforce this trajectory:

direct

access

to

global

subsea

cable

systems, and supportive national policies that are

Europe’s

ready to attract hyperscale and AI-oriented digital

connectivity-driven site selection to renewable-

power

scarcity

and

the

shift

from

infrastructure. The country’s position on the Atlantic

availability-driven development make Portugal a

coast makes it one of the few European nations

prime beneficiary, particularly as 76% of operators

capable of hosting intercontinental landing points

across Europe cite power access as the sector’s

at scale, with new systems such as EllaLink, Equiano,

most critical challenge.

2Africa, Nuvem, Medusa, and PISCES reshaping its connectivity profile. Combined, these cables

At the same time, Portugal faces familiar constraints.

provide ultra-low-latency routes linking Europe with

Access

the Americas, Africa, the Middle East, and parts of

permitting timelines, and availability of specialised

Asia, enabling Portugal to function as a true pan-

workforce

regional gateway.

EUDCA’s

to

high-capacity

grid

skills—challenges pan-European

infrastructure, highlighted

surveys—also

in apply

here. Nevertheless, Portugal’s ability to combine According to the 2025 Data Centers Market Outlook

geographic advantage, sovereign-scale connectivity,

by PortugalDC (research by Pb7), Portugal is entering

and renewable-heavy energy positioning makes it

an unprecedented build-out, with more than €13

one of Southern Europe’s strongest future digital-

billion in new data center construction forecasted

infrastructure contenders, especially for AI model

by 2031 and IT power capacity expected to increase

training, hyperscale cloud expansion, and next-

more than 40-fold. Anchor developments—most

generation interconnection ecosystems.

78

PORTUGAL MARKET

IT POWER 2025

CAGR 2024-2031

COLOCATION

56 MW

74%

HYPERSCALE

0 MW

NA

Source: European Colocation & Hyperscale Database 2025v2, Pb7 Research

79

POLAND IT POWER 2025

CAGR 2024-2031

COLOCATION

228 MW

14%

HYPERSCALE

15 MW

12%

MARKET

Source: European Colocation & Hyperscale Database 2025v2, Pb7 Research

80

POLAND Poland has emerged as Central and Eastern Europe’s

investment strategies across Europe. Poland, while

strongest data center hub over the past couple of

not immune to these issues, is better positioned

years, driven by rapid digitalisation, resilient enterprise

than many neighbouring markets due to ongoing grid

demand, and major hyperscaler investments in cloud

modernisation programmes, new renewable energy

regions. Central and Eastern Europe is a region where

capacity, and strong alignment with the national digital

growth is accelerating quickly but unevenly, with Poland

strategy.

clearly at the forefront, driven by its strong IT sector, large domestic market, and improving connectivity to

Poland’s maturing ecosystem is creating conditions

both Western Europe and the Baltics. Interestingly, the

similar to those observed in Italy a few years earlier:

growth from concrete projects is “only” in the low double

consolidation of legacy enterprise data centers into

digits. However, there are numerous large, speculative

modern colocation environments, steady expansion

projects with the potential to significantly raise our

of wholesale and scale facilities, and rising interest

conservative forecast.

in hosting sovereign-cloud and regulated workloads.

Coupled with substantial long-term demand from

Warsaw is Poland’s dominant metro, benefiting from

financial services, e-commerce, media, and gaming

a dense enterprise environment, rapid local cloud

sectors, Poland is solidifying its role as a regional bridge—

adoption, and growing interest from global operators

linking the Nordics, DACH region, and Southeastern

seeking alternatives to congested FLAPD markets.

Europe into a broader European digital-infrastructure

Power scarcity and permitting friction are now shaping

corridor.

81

GREECE Greece is becoming one of Europe’s most interesting

fits squarely within this pattern. Regions such as

connectivity-led

its

Attica and Crete are increasingly seen as strategic

growing role as a Mediterranean intercontinental

locations for large-scale cloud and AI inference

landing point. A surge in subsea cable deployments—

clusters, as well as disaster-recovery workloads.

emerging

hubs,

driven

by

linking Greece to the Middle East, North Africa, and Asia—has transformed the country from a historically

Greece also benefits from a strong policy pivot:

peripheral market into a critical node in Europe’s

digital infrastructure investment is closely tied

future digital map. Investments from hyperscalers,

to national strategies for the energy transition,

including

demonstrate

data sovereignty, and economic diversification.

that Greece’s geographic and energy-transition

As with other emerging hubs, challenges remain—

advantages

most

Google align

and well

Microsoft, with

EU-wide

objectives

notably grid

stability, regional

permitting

around diversification, resilience, and sovereign

complexity, and the need to expand the skilled

infrastructure expansion.

workforce pipeline. But with its rapidly improving connectivity profile, favourable geographic position,

Southern Europe is experiencing the strongest

and alignment with Europe’s broader push for digital

growth of any region in Europe, fuelled by improved

sovereignty, Greece is now positioned to become

intercontinental

the Southeastern anchor of Europe’s new multi-hub

connectivity,

rapidly

expanding

data center era.

renewable energy capacity, and frustration with grid congestion in Western European metros. Greece

82

GREECE MARKET

IT POWER 2025

CAGR 2024-2031

COLOCATION

31 MW

37%

HYPERSCALE

0 MW

Source: European Colocation & Hyperscale Database 2025v2, Pb7 Research

83

NA

(3 8 MW I N 2031)

PAINTING THE CLOUD TEXT: MELS DEES

Data centers form the backbone of the digital

Google’s Data Center Mural Project is a response

age. They are reliable, efficient, and designed to

to that invisibility. The initiative invites local artists

operate without drawing attention. Yet there is a

to transform data center facades into large-scale

growing global need to make the physical reality

artworks. What began as an aesthetic experiment

of digital infrastructure more visible. The cloud

has evolved into public communication about

is not a metaphor but a collection of buildings,

critical infrastructure. Vice President Data Centers

transmission lines, cooling systems, and employees

Joe Kava explained: “We created the Data Center

who work around the clock.

Mural Project: a partnership with artists to bring a bit of the magic from the inside of our data centers to the outside.”

GLOCALIZATION OF INFRASTRUCTURE Data centers are internationally standardized; a server

This creates a tension: global infrastructure becomes

hall in Belgium must operate like one in the United States

place-based through regional art. While the technical

or Singapore. This is precisely why the murals stand out:

architecture

they add something that cannot be scaled, namely local

becomes differentiated. This produces glocalization,

identity.

global technology that visually connects with the local

remains

uniform, the

aesthetic

layer

community. Kava summarized it: “People usually don’t In St. Ghislain, Google chose Belgian artist Oli-B, who

realize what these buildings do… Art helps us open that

covered the data center with a colorful abstract

conversation.”

cloudscape. He said: “Clouds can have a dreamy feeling…

Something vibrant, with a bit of poetry.” His design is

For professionals, this can be seen as a strategy to

inspired by the surrounding landscape, including the

anchor data centers more firmly in their surroundings.

sheep grazing nearby.

The sector faces increasing questions about spatial integration, energy use, and sustainability.

84

85

ART AS AN INTERFACE BETWEEN HUMANS AND MACHINES A data center is technically closed; visitors cannot enter,

Oli-B expressed a similar idea: “The point is for the

and even employees often see only part of the whole. Yet

people in the data center to be able to see themselves

there is a societal desire to understand what happens

in the work.” In a sector where automation and predictive

behind its walls. Art proves to be an effective mediator,

maintenance are increasing, the human factor remains

not through technical details but through imagination.

essential. The murals acknowledge that role.

American artist Jenny Odell, who created the mural

For the public, the art offers an accessible way to

in Mayes County, based her work on aerial images of

reflect on what a data center actually is. Art functions

infrastructure. “Each piece focuses on a different type

as an interface between a technical system and the

of infrastructure that enables the flow of goods, power

community that depends on it.

and information.” About the employees she added: “I wanted the mural to create a sense of pride for the people who work so hard to maintain the inner workings of the data center.”

86

PAINTING THE CLOUD AS CULTURAL INFRASTRUCTURE The title refers to how the murals bring the abstraction

For professionals involved in site selection, permitting

of digital technology back into the physical world. Data

processes, or community engagement, the project

may seem immaterial, but data centers are tangible,

offers a relevant case. It demonstrates that a data center

energy-intensive, and embedded in local ecosystems.

can be both a high-tech facility and a neighborhood

Painting the cloud directly onto a wall makes that

building. Odell put it succinctly: “The mural is a way of

contrast visible.

saying that this place is part of your landscape, part of your life, even if you never go inside.”

This has broader meaning for the sector: public perception is becoming increasingly important. A mural does not change PUE, redundancy, or cooling strategy, but it does change how a community experiences the building.

87

Can Europe heat it's greenhouses with AI? Europe faces a paradox at the heart of its digital future. Artificial intelligence is accelerating faster than any infrastructure in history, while Europe’s power grids expand slowly and unevenly. In parallel, industrial heat demand remains one of the continent’s largest energy burdens — still largely served by fossil fuels.

Digital Energy was founded on a simple but overlooked insight: these problems are not separate. They are two sides of the same system — and solving them together unlocks the future of energy infrastructure.

HEAT MEETS COMPUTE

Half of the world’s energy is consumed as heat, and much of it still comes from fossil fuels. At the same time, AI infrastructure converts all consumed electricity into thermal energy. Most of that heat is still vented and wasted. Digital Energy connects these two flows by deploying distributed, liquid-cooled AI infrastructure alongside industrial heat offtakers, transforming compute into a reliable source of useful heat.

"The next generation of European infrastructure won't be built by companies optimising the old model. It will be built by those rethinking what a data centre can be.

Digital Energy demonstrates how AI infrastructure can contribute beyond compute, by reusing heat, supporting food production and delivering sovereign AI capacity. This is exactly the kind of structural innovation our industry needs."

Michael Winterson Secretary General, European Data Centre Association

TWO WORLDS, ONE INSIGHT

The company emerged from two worlds that rarely meet: data center development teams that watched projects stall in permitting queues and grid connection backlogs, and Dutch greenhouse families facing volatile gas prices and rising carbon costs. In 2017, the founders recognized a complementary dynamic: greenhouses often have permitted grid connections and constant heat demand, while AI compute needs grid access and produces heat continuously. One industry’s crisis was hiding inside the other’s exhaust.

Traditional data center development is hitting a structural wall in Europe. Demand for AI inference workloads is growing far faster than grid expansion. Centralized mega-campuses wait years for grid connections that may never arrive. The alternative is a distributed architecture — what NVIDIA calls an ‘AI Super-Factory’: smaller sites that can operate independently, cluster logically when needed, and deploy where power is available and heat demand already exists.

HEAT, NOT HYPE: What AI can power besides algorithms 12 SITES | 100+ MW TOTAL IT LOAD | 100+ kW RACKS | FIRST RFS �4 2026

BUILDING EUROPE'S FIRST Digital Energy is building Europe’s first distributed, liquid-cooled AI infrastructure platform integrated with industrial heat users.

Sites are designed to recover the majority of input energy as usable heat at temperatures suitable for industrial and agricultural processes. Liquid cooling matters here not only for performance but because it enables higher-grade heat recovery than typical air-cooled designs.

For AI customers, this means sovereign, high-density capacity available sooner — not because corners are cut, but because the model avoids the grid bottlenecks that stop many European projects entirely. The platform is purpose-built for inference and edge AI workloads, with capacity scaling faster than legacy infrastructure allows.

"We go where power already exists and is underutilized. That's how you build in Europe without waiting for connections that may never come."

Jonathan Mattis, Co-founder & CIO

For municipalities, the value is direct and measurable: heat decarbonization without public subsidies, long-term energy price stability for local industry, preservation of food production, and digital infrastructure that adds no new strain to the grid. For citizens, it means local industry remains viable, and AI infrastructure contributes visibly to society rather than remaining a distant, fenced-off abstraction.

ENERGY THAT COMPUTES Digital Energy is not a data center operator optimizing the old model. It is energy infrastructure that computes — turning AI growth into an engine for industrial decarbonization and regional resilience. Its mission is to turn AI computing into a large source of carbon-free industrial heat, and its vision is to build the energy backbone for intelligence.

+31 297 728 497 digital-energy.group info@digital-energy.group

AI DATA CENTRE DEVELOPMENT AND POWER AVAILABILITY TEXT: KEVIN RESTIVO

TABLE 1: EUROPE TAKE-UP (MW)

2017

2018

2019

2020

2021

2022

2023

2024

2025

170

242

248

301

478

545

603

699

867

90

AI-ready data centres are an emerging segment of the

The rise in AI-specific signings reflects a market shift of

data centre landscape in Europe. Hyperscalers and the

sorts as leased capacity scale has been delivered at scale

neocloud providers have become drivers of AI demand

to hyperscalers looking to build or expand cloud regions.

and capacity has been built to satisfy their needs.

Neoclouds are emerging AI infrastructure providers that have grown their footprint in Europe largely by absorbing

Emerging AI infrastructure providers, often called neoclouds,

are

contracting

colocation

capacity

in

significant

response

to

vacant space meant for hyperscalers.

available

hyperscaler

The growth of contracts signed with neoclouds reflects

demand. According to research from CBRE, signings for

the growing comfort level on the part of data centre

AI-focused colocation capacity reached 414MW in the

providers with neoclouds and the covenants that come

first nine months of 2025, up from 133MW compared to

with them. As a result, we see tremendous growth of this

the same period in 2024. More than half of this capacity

segment especially in the Nordics, where lower-cost

(57%) was signed in the Nordics.

renewable power is often available in greater abundance than in many other European markets.

In

2025, there were

new neocloud

deployments

announced in varied locales such as Portugal, Scotland

The ability to meet demand is the larger problem is the

and Norway. AI capacity is also being contracted at

industry is trying to solve as demand for AI-designated

scale in other European markets, such as London, Paris

capacity has outrun hyperscaler’s ability to deliver AI

and Barcelona.

workloads at scale across the continent. The challenge of meeting demand is complicated by the shortage of

However, the Nordics and Iberia are clear destinations

sufficient power most notably.

for providers given the availability of power and the relatively low power cost, which for energy-intensive

Available power is more correlated than ever with data

workloads will significantly lower their operating costs

centre development. The lack of available power is a

when compared with other European countries.

two-pronged problem.

TABLE 2: EUROPE NEW SUPPLY (MW)

2017

2018

2019

2020

2021

2022

2023

2024

2025

261

215

362

260

497

543

563

650

827

Continued on next page

91

The constraint on power comes in two forms. At the high-voltage transmission level grid constraints can prevent, if not limit, redistribution of renewable power generation areas to the high population areas. Although more transmission networks are planned, the laying of new high-voltage cables is a long-term process. It is also expensive, with the EU transmission regulator noting that over €800 billion of investment in European grid capacity is required by 2050. Second, at the substation level, there is a shortage of capacity to individual data centres. The shortage of power availability has been exacerbated by actions of various Transmission System Operators (TSO). The result is that supply has become increasingly constrained in FLAPD as grid capacity from the Transmission System Operator (TSO) has been unable to keep up with demand.

Lead times for connections to the electricity connectivity vary substantially by location but are typically measured in years. In most cases, it is dependent on whether capacity is available at a local substation as those are usually the first bottleneck in the process.

KEVIN RESTIVO Director, Europe Data Centre Solutions Consulting CBRE Ltd.

TABLE 3: AMSTERDAM TAKE-UP (MW)

2017

2018

2019

2020

2021

2022

2023

2024

2025

21

42

40

32

67

30

103

10

42

92

For data centre providers, the ability to deliver vast

more acute as inference AI requirements grow and the

amounts of power in a year or two represents an

need for capacity to grow availability zones on the part

advantage over the competition. Neoclouds are fledgling

of hyperscalers subsides.

enterprises that need to build infrastructure quickly in a bid to scale their business. As such, neoclouds aren’t

The pool of AI-ready data centres is small but growing

able to wait five to 10 years for a data centre to be built.

rapidly. Operators are planning to adopt liquid cooling in their new facilities. By this an operator who is

Besides

power

availability,

land

availability

and

constructing a campus is providing a mix of air-cooling

difficulties securing planning in a timely manner are

and liquid-cooling technology and is ensuring the option

also obstacles to progress when it comes to AI data

remains open to be able to convert more data halls to

centre development. However, those don’t feature as

cater for high-density AI workloads as needed.

prominently as standalone factors compared to the cost of energization and the ability to source scalable

AI-ready data centres are to be a feature of the

power.

landscape

for

new

developments.

However,

the

availability of power and low power will dictate where That said, the higher profile the industry has taken

workloads are located. This may place FLAPD markets

on given has led to more opposition to data centre

at a disadvantage when compared with the Nordics and

development in select locations. In Dublin, for example,

Iberia. However, AI-ready data centres to some degree

several court appeals have been lodged against data

will remain a feature of all markets, although for larger AI

centre developments, citing the use of power and the

data centres, a low-cost scalable energy location would

lack of sustainability.

be the preferred choice. However, for reasons of data sovereignty, the larger colocation data centre markets

Destinations aside, data centres will need to cater for a

will still see some AI-ready data centre investment.

wider spread of workloads, from conventional densities towards the higher densities. This need will become

TABLE 4: AMSTERDAM NEW SUPPLY (MW)

2017

2018

2019

2020

2021

2022

2023

2024

2025

40

51

71

36

75

11

64

1

31

93

94

95

UNLOCKING GROWTH IN EUROPE’S DATA CENTER SECTOR

EUROPE’S DATA CENTER SECTOR IS ON THE BRINK OF AN UNPRECEDENTED ACCELERATION. DEMAND FOR DIGITAL SERVICES, CLOUD INFRASTRUCTURE AND, ABOVE ALL, AI CAPACITY CONTINUES TO RISE.

For Pablo Ruiz-Escribano, SVP Secure Power & Data Center Business at Schneider Electric, this growth is anything but abstract. He sees firsthand how quickly compute densities are rising, how workloads are shifting and how innovation in critical infrastructure is being driven at unprecedented speed.

That reality is already evident in his customers’ deployments, where rack densities have moved well beyond the traditional 7-10kW range and AI environments now exceed 100kW per rack -demanding fundamentally different approaches to power and cooling.

Ruiz-Escribano stresses that growth always follows demand.

AI adoption has doubled in just one year, and the number of IoT devices will triple within five years. To support this growth in Europe, all stakeholders must collaborate more closely: utilities, telcos, governments, suppliers, designers, operators and investors. “We must work collectively to overcome barriers related to resource scarcity or access to electricity.” This collaboration is already visible in Schneider Electric’s work with NVIDIA, where both companies co-developed AI data center reference designs that integrate power, cooling and digital infrastructure from the outset reducing deployment risk and accelerating time to market.

This demand goes far beyond the traditional IT market. AI, cloud and edge are becoming the backbone of new services, from healthcare to mobility, making data center infrastructure increasingly vital for society’s functioning.

PABLO RUIZ-ESCRIBANO SVP Secure Power & Data Center Business Schneider Electric

TEXT: MELS DEES

96

THE REAL ENERGY CHALLENGE Europe has sufficient energy production at a macro level,

and efficiency. As Ruiz-Escribano puts it: “Instead of asking for

but the challenges lie in location, timing and distribution.

100 megawatts, you can deliver the same IT capacity with 80

Large power capacities are needed precisely where new

megawatts thanks to more efficient solutions.”

digital hubs emerge. According to Ruiz-Escribano, the grid often has capacity, but not always at the right moment or

By integrating electrical infrastructure, cooling, white space

in the right location. The energy issue is therefore as much

and data center management, Schneider Electric can

about infrastructure planning as about production. Lengthy

drastically reduce the use of energy, space and cooling

processes for grid connections and permits are among the

capacity. In some cases, this results in energy savings of up to

biggest brakes on growth.

50 percent compared with traditional designs. Such efficiency gains directly help unlock growth in a time of grid congestion.

Schneider Electric does not control physical access to the power grid, but it does play a key role in optimizing energy use

WHITE VERSUS GREY SPACE IN AN AI ERA AI is reshaping the traditional balance between white and

Liquid cooling is becoming essential for AI workloads with

grey space. Where cloud data centers typically offered ample

extremely high thermal densities. For classic storage and

white space, the explosive rise in GPU compute density is

conventional compute, air cooling remains sufficient. As Ruiz-

reversing that model. “White space is shrinking, and grey

Escribano notes: “If you look at storage, you don’t need liquid

space is growing, especially for AI applications.”

cooling, but GB200, GB300 or Rubin will require it.”

The infrastructure required for power and cooling is growing

The future therefore lies in hybrid data centers that combine

faster than the IT footprint itself. At the same time, roughly half

both cooling technologies, tailored to workload type, density

of the market will continue to consist of traditional, air-cooled

and scalability. The sector must remain flexible and invest in

cloud and storage environments. “AI is not the replacement of

adaptive infrastructure, he says.

the existing data center landscape, but its accelerator.”

THE STRENGTH OF THE ECOSYSTEM Partnerships determine the speed at which the sector can

For Ruiz-Escribano, the significance of data centers goes far

grow. Ruiz-Escribano emphasizes that collaboration must

beyond technology. He sees how digitalisation is reshaping

extend far beyond major brands or hyperscalers: “We need

society.

to work collectively so that we are prepared, otherwise the

knowledge, languages and media; all are enabled by data

technology will arrive, and we will face a crash.”

centers. “It facilitates new ways of living.”

Schneider Electric collaborates with GPU suppliers as well

He also highlights how AI accelerates medical research and

as designers, installers, EPC firms and maintenance partners.

creates new economic opportunities. Data centers thus

Connecting the entire chain—from demand to component—

become engines of progress, even if most people never see

enables infrastructure to be built more quickly, more reliably

what happens behind the scenes. As a result, operational

and more future-proof. This is essential in a market where

performance is becoming just as critical as design efficiency

technology cycles continue to shorten.

with AI increasingly used to optimize data center operations

Hybrid

work,

global

collaboration,

access

to

across their full lifecycle.

This approach is reflected in the collaboration with ETAP and NVIDIA on digital twin technology, enabling operators to

Data centers are not just a technical backbone but a societal

simulate and optimize AI factory power requirements before

one. Without them there would be no AI models, no online

deployment, reducing risk and accelerating commissioning

collaboration, no digital economy. For Ruiz-Escribano, this is

in a market where customers are demanding quicker

precisely what makes the sector so fascinating: it connects

deployments.

technology with people, and innovation with progress.

97

THE RAPID REVOLUTION IN DATA CENTER COOLING The days when 10 or 15 kilowatts per rack were considered impressive are long gone. Today, we’re talking about power levels of 100 kilowatts per rack, and that’s just the beginning.

“Anyone who still thinks 100 kW is a lot is almost being laughed at,” says Carlo Brouwer, Managing Director at Stulz. “The racks are becoming more powerful, and that demands completely new cooling concepts.”

According to Brouwer, the transition to liquid cooling is inevitable. “As rack power continues to increase, air cooling simply can’t keep up. That’s why we’re now seeing various forms of liquid cooling emerge: direct chip cooling, cold plate cooling, and immersion cooling. They’re all liquid-based, but each comes with its own technical challenges.” Still, liquid cooling can’t solve everything. “There will always be residual heat, typically 20 to 30 percent. For a 100 kW rack, you still need to dissipate around 20 kW through air, and that’s difficult with conventional systems.

That’s why more and more hybrid solutions are appearing, combining liquid cooling with, for example, active rear doors or side coolers.”

CARLO BROUWER Managing Director Stulz Benelux

TEXT: MELS DEES

98

FROM NICHE TO MAINSTREAM This development is driving a wave of innovation within Stulz.

The arrival of liquid cooling is also changing the way people

“Some existing technologies, like rear door cooling, are being

work. “You’re now dealing with two cooling circuits: a primary

revived and further developed. What used to be a niche

and a secondary one. Both have to remain completely clean.

product is now becoming mainstream. At the same time,

The coolant in the secondary circuit must be free of any

we’re introducing new solutions like the CMU, the Coolant

contamination, or else the tiny channels in the chips can get

Management Unit,” Brouwer explains. “The CMU is a product

clogged. That’s why we use ultra-fine filters that need regular

that didn’t even exist a few years ago. Now we have a full

cleaning. Each installation must also be flushed with mobile

production line set up in Hamburg. Everything is made from

flushing units before it’s put into operation. Hardly anyone

stainless steel, and the technology is far more complex than in

thinks about that, but it’s all part of the new reality of liquid

traditional cooling systems.”

cooling.”

MODULAR SOLUTIONS FOR EXISTING DATA CENTERS For existing data centers that can’t completely overhaul their

According to Brouwer, this also opens new opportunities for

infrastructure, Stulz offers a modular approach. “With our Skid

sustainability. “The temperatures in liquid cooling are higher,

solution, you essentially create an island on the data floor.

making heat recovery much easier. The heat is already in liquid

It’s a self-contained unit with all the piping and components

form, which makes it much simpler to transport and reuse.”

already integrated, ready to be connected directly to the existing infrastructure. This allows you to add high-density racks without major renovations.”

NEW REGIONS EMERGING Alongside

technological

changes,

Brouwer

also

sees

Brouwer also sees new opportunities closer to home. “We’re

geographical shifts. “The traditional FLAP cities are hitting their

working with partners like Merford on projects where noise

limits. Congestion, lack of space, and permitting processes

control is becoming more important than just the PUE value.

that take years make expansion difficult. As a result, data

Data centers are increasingly located near residential areas,

centers are moving to regions where space, power, and

so quiet cooling solutions are essential. That opens up new

flexible regulations are available.”

markets.” Scandinavia remains attractive too. “In Finland and Sweden, it’s naturally cold, there’s plenty of space, and the

A good example is Zaragoza in Spain. “Hardly anyone had heard

infrastructure is strong. We’re seeing clear growth there.”

of it three years ago, and now hyperscalers are flocking there.

Why? They have land, they have power, and the government

Brouwer looks to the future with confidence. “The data center

makes it easy. Latency has become less important; it’s all

world is changing at lightning speed, but that’s what makes it so

about power availability.” Portugal and Poland, he adds, are

fascinating. New technologies, new markets, new challenges.

also increasingly on the radar.

And that’s exactly what keeps this industry so exciting.”

99

DECARBONIZING THE DATA CENTER INDUSTRY IN EUROPE The European data center sector is under growing pressure to demonstrably contribute to climate targets.

Digitalization continues to accelerate, while grid congestion, stricter regulation and rising societal expectations have removed any room for complacency. The discussion has therefore shifted from ambitions to measurable impact. What is delivering real carbon reductions today, where are the bottlenecks, and what needs to change within the next two years to substantially reduce both operational and embodied emissions?

TEXT: KRISTEL NIJSSEN (Bureau Landskroon) INTERVIEW: XIAOJIE LIU - LUC SPIN - WIM TIMMERMANS

ENERGY EFFICIENCY AND RENEWABLES DELIVERING RESULTS In

practice,

the

largest

and

most

DESIGN CHOICES SHAPING EMBODIED CARBON Clear

immediate

lessons

have

also

emerged

on

the

reductions are being achieved through a combination

development and construction side. UNICA Data

of energy-efficient infrastructure, intelligent control

Centers

and accelerated deployment of renewable energy.

emission reductions can be achieved before a

According to Xiaojie Liu, Marketing Manager at Delta

facility

DCS, this combination is essential. “Real carbon

carbon concrete and steel, and reducing embodied

reductions

observes becomes

that

a

significant

operational.

share

“Choosing

of

lower-

combining

carbon in construction elements, yields quantifiable

renewable energy, high-efficiency power products,

carbon savings even before operations begin,” says

and intelligent infrastructure management.” Delta

Luc Spin, Vice President Sales and Marketing. Early

underpins this with scale and data. Between 2010

design decisions determine a large part of the

and 2023, its solutions enabled a global reduction of

lifetime footprint and are therefore among the most

23.84 million tons of CO₂ and electricity savings of

effective levers available.

are

being

delivered

by

45.5 billion kWh. These results show that efficiency technologies have moved well beyond the pilot

A related factor is right-sizing. Lifecycle assessments

phase.

and early design reviews help align infrastructure with actual IT loads. Oversizing increases capital

Within

data

efficiency

centers, power

this

translates

systems,

high-

expenditure and locks in structural inefficiencies.

cooling

UNICA therefore advocates defining a maximum

into

advanced

of renewable

PUE of 1.15 to 1.20 already during the design phase,

energy, increasingly supported by energy storage.

forcing an integrated approach to cooling, airflow

The impact is twofold. Operational emissions are

and electrical infrastructure.

technologies

and

the

integration

reduced, while reliability and resilience improve.

Continuous these

monitoring

improvements

and

optimization

measurable

and

make

scalable,

which is now a prerequisite for investors, customers and regulators.

100

VERTIV ON POWER, COOLING AND INTELLIGENT OPERATIONS From

an

operational

perspective,

RETROFITTING AND REMAINING BARRIERS Vertiv

sees

Opportunities

also

highlights

exist targeted

in

existing retrofits

facilities.

measurable progress in both power and cooling

UNICA

efficiency. Wim Timmermans, EMEA Sales Director

efficient power distribution, modern UPS systems,

combining

Regional Strategic Accounts, points to structural

containment, free cooling and liquid cooling where

improvements in Power Usage Effectiveness and

required. Real-time monitoring via DCIM and BMS

cooling technology. Leading hyperscale facilities

platforms enables continuous optimization and

now operate with PUE values close to 1.10, compared

supports better investment decisions.

to legacy averages of 1.6 to 1.7. “That difference represents

a

major

reduction

in

non-compute

The remaining barriers are primarily organizational

energy consumption and proves that efficiency

and regulatory rather than technical. Permitting

gains are no longer incremental but structural,” he

delays for renewable energy, limited grid capacity

explains.

and the lack of uniform lifecycle standards continue to slow progress. What needs to change is speed,

Cooling remains one of the largest opportunities.

transparency and collaboration across the value

According to Vertiv, cooling typically accounts for 30

chain.

to 40 percent of total energy use. Free cooling and indirect air cooling can reduce mechanical cooling

The conclusion is clear. The tools to substantially

energy by up to 50 percent in suitable climates,

decarbonize the European data center sector are

while hot and cold aisle containment improves

available and already delivering results. The next

efficiency by more than 20 percent. Liquid cooling

two years will determine whether these solutions

is increasingly important as compute densities rise.

are applied at scale. Those who commit now to

Direct-to-chip liquid cooling transfers heat far more

measurable

efficiently than air and enables both higher density

integrated collaboration will strengthen both their

and waste heat recovery. Some operators report

climate performance and their long-term resilience.

efficiency,

lifecycle

thinking

cooling energy savings of up to 40 percent after adoption.

THE NEXT TWO YEARS: FROM EFFICIENCY TO FULL DECARBONIZATION

“Faster access to renewable energy, combined with on-site energy storage, will further reduce operational carbon and improve grid stability”

Efficiency alone, however, is no longer sufficient.

The next two years must focus on full lifecycle decarbonization. On the operational side this means

- Xiaojie Liu, Marketing Manager at Delta DCS

faster access to renewable energy, complemented by on-site storage and smarter interaction with the grid. “Carbon-aware workload scheduling and demand

flexibility allow

consumption with

data

periods

centers

of low

grid

to

align

carbon

UNICA Data Centers observes thata significant share of emission reductions can be achieved even before a facility becomes operational

intensity,” says Timmermans. Battery energy storage and participation in demand response programs support grid stability while reducing emissions.

At the same time, embodied carbon is becoming a dominant factor. Delta reports tangible progress

“Power and cooling efficiency have become structural levers for decarbonization, not marginal optimizations.”

through low-carbon materials, modular construction and detailed lifecycle assessments. Experience from dozens of green buildings and data centers

- Wim Timmermans, EMEA Sales Director Regional Strategic Accounts, Vertiv

worldwide shows that these approaches deliver real savings and are ready for broader deployment.

101

and

LIQUID COOLING IN THE AI ERA TEXT: KRISTEL NIJSSEN (Bureau Landskroon) INTERVIEW: JAKOB JUL JENSEN - SVETLANA THEUNISSEN - JON PETTITT - PAUL MORRISON

Artificial intelligence and high-performance computing are redefining the technical boundaries of data centers.

What was once an incremental increase in rack density has become a structural shift. AI training clusters and GPUrich environments now operate at power levels where traditional air cooling is not only inefficient, but fundamentally insufficient. As a result, liquid cooling has moved from a specialist option to a core design principle for nextgeneration facilities.

The physics behind this transition is straightforward. Modern GPUs generate extreme and highly concentrated heat loads that cannot be removed fast enough with air alone. Jakob Jul Jensen, Director Data Center Solutions at Danfoss Climate Solutions, sees little room for debate. “Liquid cooling is becoming essential as AI and HPC workloads push server power densities far beyond the practical limits of air cooling.” Beyond peak performance, the challenge is operational stability. Heat must be removed quickly and consistently to prevent throttling, downtime and accelerated component wear. Liquid cooling enables this with far greater thermal efficiency.

AIR HAS REACHED ITS PHYSICAL LIMIT

DIRECT-TO-CHIP AS A PRAGMATIC PATHWAY

As AI workloads scale, rack densities continue to

From an implementation perspective, the industry

rise. Where 10 to 20 kW per rack was once typical,

is converging on solutions that balance innovation

AI-driven environments now exceed 60 kW as

with

a

densities

cooling is emerging as the preferred approach for

emerging. Svetlana Theunissen of Rittal describes

many colocation and enterprise environments. This

this as a hard physical boundary. “There is no doubt

model cools CPUs and GPUs via cold plates, while

that liquid cooling has transitioned from a niche to

the remainder of the server continues to rely on air

a non-negotiable requirement for HPC and AI data

cooling. The result is flexibility. Hybrid data halls can

centres.” At these densities, increasing airflow no

support both conventional and high-density racks

longer delivers meaningful gains, regardless of fan

without requiring a complete facility redesign.

baseline,

with

significantly

higher

operational

realism.

Direct-to-chip

liquid

efficiency or containment strategies.

Danfoss sees liquid cooling not as a disruptive Efficiency and sustainability reinforce the case for

replacement, but as a logical extension of existing

liquid cooling. More effective heat transfer reduces

infrastructure. “Liquid cooling enables significantly

the energy required for cooling, lowering both PUE

higher thermal transfer than air, allowing operators

and WUE. This matters as operators face tighter

to support higher rack densities while also improving

environmental regulation and rising energy costs.

energy efficiency and reducing overall cooling

Liquid cooling also enables heat reuse, allowing

power consumption,” Jensen explains. With AI-

waste heat to be captured and supplied to district

driven demand accelerating, the technology is no

heating networks or industrial processes. Cooling

longer experimental. It is ready for deployment at

therefore shifts from a pure cost factor to a potential

scale.

energy asset.

102

MUNTERS ON PERFORMANCE, DENSITY AND PRACTICAL ADOPTION Munters Data Center Technologies sees the same

Liquid cooling allows heat to be removed closer to

shift driven by real-world deployments. According

its source and in a more controlled manner. This

to Jon Pettitt, Senior Director of Sales EMEA and

unlocks higher rack densities, stable performance

APAC, AI and HPC are fundamentally changing

and improved energy efficiency. Pettitt also points

design assumptions. “The power density and heat

to the strategic value for operators facing site

concentration of modern GPU platforms are far

constraints. Supporting more compute within the

beyond what traditional air cooling was ever designed

same footprint is becoming a decisive advantage.

to support efficiently.” While air can still be moved,

Adoption

the trade-offs quickly become unfavorable, with

particularly for retrofits. New skills, processes and

higher fan energy, more floor space and narrower

coordination between IT and facilities are required,

thermal margins.

but these challenges are diminishing as experience

barriers

remain

largely

practical,

and confidence grow.

LEGRAND ON ECOSYSTEM MATURITY AND INTEGRATION

CONCLUSION

Legrand takes a broader system-level view. Liquid

The direction is unmistakable. AI and HPC will

cooling is no longer limited by technical feasibility,

continue to push compute density higher, not lower.

but by the pace at which the surrounding ecosystem

Liquid cooling will define how data centers respond

adapts,

to

Paul

Morrison,

European

Business

that

pressure,

shaping

mechanical

design,

says.

operational models and sustainability outcomes.

concentrate

What is changing now is not the technology, but

large amounts of power into small physical areas,

the mindset. Liquid cooling is no longer about

making airflow-based cooling increasingly complex

preparing for the future. It is about enabling today’s

and energy-intensive. Liquids, by contrast, offer

AI workloads efficiently, reliably and at scale.

Development AI

and

Director,

Legrand

accelerator-based

USystems

systems

superior thermal properties and enable more stable operating conditions at higher temperatures.

At the same time, large-scale adoption depends on

liquid-ready

server

platforms,

operational

transformation and system integration. Standards and interfaces are converging, but not yet universal.

AI AND HPC WILL CONTINUE TO

Many operators are aligning adoption with clearer

PUSH COMPUTE DENSITY HIGHER,

AI

roadmaps,

particularly

outside

hyperscale

NOT LOWER

environments. As AI deployments expand across industries, this caution is expected to fade.

103

ENSURING CONTINUOUS POWER IN AN UNCERTAIN GRID The European data center sector is entering a new phase in its relationship with power. Grid availability and stability can no longer be taken for granted. Congestion, delayed connections and capacity constraints are becoming structural, while expectations around uptime remain absolute. For mission-critical facilities, continuous power supply is no longer only an engineering challenge, but a strategic issue that touches design, operations and the role data centers play within the wider energy system.

TEXT: KRISTEL NIJSSEN (Bureau Landskroon) INTERVIEW: FREEK VAN ALPHEN - CHARLOTTE BERRY-SELWOOD - ZWART TECHNIEK

FROM GRID DEPENDENCE TO ACTIVE POWER STRATEGIES Zwar t

Tech niek

st ress es

that

ABB ON HOLISTIC POWER DESIGN AND DIGITAL RESILIENCE the

f irst

reality

ABB

emphasizes

that

continuous

power under

o p erato rs must accept is that a reliable grid

extreme conditions requires more than redundancy

connection

Grid

alone. According to Freek van Alphen, Head of Data

congestion and limited available power are no longer

Center Services EMEA, resilience starts with the

exceptions. “Data centers need to look at alternative

entire power chain. “Continuous power requires

options and become a part of the solution to these

a

issues,” the company explains. Facilities that invest

components.” Medium- and low-voltage systems,

in primary power capabilities and energy storage

UPS, monitoring and control must operate as one

can safeguard their own continuity while actively

coherent system.

can

no

longer

be

assumed.

holistic

design

approach

beyond

individual

supporting grid stability. This marks a shift from passive consumer to active participant in the energy

Redundancy

remains

fundamental,

but

power

landscape.

quality, system behavior under stress and early fault detection are equally critical. ABB highlights the Zwart

growing role of predictive maintenance and real-

Techniek has long operated in environments where

time diagnostics. Digitalization enables operators

grid power was never guaranteed. “Our decades of

to anticipate issues before they impact uptime.

experience in continuous power supply in many

Reliability is no longer static, but actively managed

remote locations across various continents turns

throughout the lifecycle of the facility.

This

approach

is

rooted

in

experience.

out to be very valuable for this new reality.” Diesel, gas, hybrid solutions and large-scale storage are increasingly viewed as integrated elements of a “Continuous power requires a holistic design approach beyond individual components.”

resilient power strategy rather than emergency-only assets.

- Freek van Alphen, Head of Data Center Services EMEA, ABB

104

AVK ON DISPATCHABLE POWER AND ZERO DOWNTIME

DESIGN, SERVICE AND SPEED OF RESPONSE

AVK brings a complementary perspective focused

All parties agree that early design decisions are

on dispatchable power and microgrids. According

critical. Zwart Techniek underlines the importance

to Charlotte Berry-Selwood, Chief Development

of involving specialists from the outset to align

Officer at AVK, the most resilient data centers are

operational

requirements,

no longer built around a single source of energy

resilience.

Installation

or full dependence on the utility grid. “The grid is

Structured

maintenance

becoming more constrained at the same time as

monitoring and immediate access to expertise are

data centre demand is growing faster than ever. That

essential to keep systems in peak condition.

cost

alone

efficiency is

not

regimes,

and

enough. predictive

forces operators to rethink how power is designed ABB adds that rapid access to skilled technicians

and delivered.”

and spare parts is often underestimated. In extreme AVK sees prime power microgrids as the foundation

situations,

for

Lifecycle

resilience.

These

systems

are

capable

of

response

time

determines

management, digital

asset

impact.

monitoring

operating independently from the grid for extended

and global service networks reduce the window of

periods.

vulnerability.

However,

integration.

true

Prime

resilience

power,

comes

standby

from

generation,

renewables, storage and the grid must function

What emerges is a clear message. Continuous power

as one coordinated system capable of carrying

in today’s data centers is no longer about backup

100 percent of IT and mechanical load, not just

alone. It is about integrated design, dispatchable

emergency backup.

power,

digital

insight

and

proactive

lifecycle

management. As grids become more constrained From an infrastructure perspective, this means

and workloads more critical, resilience becomes a

integrating generators, energy storage, UPS and

dynamic capability. Continuous power is no longer

controls

simply ensured. It is actively engineered, managed

within

a

single

architecture.

Smooth

and optimized every day.

transitions between power sources are critical.

“When power infrastructure is designed as one integrated system rather than separate assets added over time, data centres can remain operational despite grid constraints, extreme weather or wider energy disruption,” Berry-Selwood explains.

MODULARITY AND OPERATIONAL DISCIPLINE Zero

downtime

is

achieved

through

fault-

tolerant design rather than reliance on indi-vidual “Our decades of experience in continuous power supply in many remote locations across various continents turns out to be very valuable for this new reality.”

components. AVK highlights the importance of redundant power paths, physi-cally separated A and B trains and live-maintainable systems. Modular solutions such as factory-tested power units reduce

- Zwart Techniek

onsite risk and allow capacity to be added or refreshed without impacting live operations.

Operational

discipline

is

equally

decisive.

“Resilient data centres are designed around dispatchable power and integrated systems, not full dependence on the grid.”

Continuous monitoring, predictive diagnos-tics and regular testing under real load conditions ensure that failure is anticipated rather than reacted to.

- Charlotte Berry-Selwood, CDO, AVK

Downtime is avoided when it is engineered out through re-dundancy, modularity and intelligent control.

105

AI-READY INFRASTRUCTURE: FINANCING, RISK AND REGULATION IN EUROPE TEXT: KRISTEL NIJSSEN (Bureau Landskroon) INTERVIEW: DRISS JOAQUIM COSTA - NATASCHA GERAEDTS - SON LAM

Artificial intelligence is forcing a structural rethink of how data centers are financed, designed and regulated in Europe. AI workloads demand unprecedented levels of capital, power density and technical sophistication, while investors are being asked to underwrite longer-term uncertainty around technology evolution, regulation and energy availability. The result is a rapidly shifting landscape in which traditional financing models are being adapted, risks are being redistributed and regulatory clarity has become a decisive factor in unlocking capital.

CAPITAL INTENSITY AND PHASED INVESTMENT “AI-ready data centres demand significant investment, but disciplined phasing and long-term customer commitments make these projects bankable at scale.”

At th e h ea r t of th e c h alle n ge lie s scale. A I- rea dy data c e nte rs re qu ire su bsta ntial u pfront i nve st m e nt i n h igh -d e n sity G PU infrastru ctu re, a d va n ce d co o l i n g a n d h igh ly re silie nt powe r syste ms. Acco rdi n g to

- Driss Joaquim Costa, Managing Director, Global Switch

Driss Joa qu im Costa , Ma n agin g Dire cto r at G l o bal Sw itc h , th is reality calls for a d i s ci p l i n e d but flex ible a pproa c h . “A I -rea d y data c e nt re s de m a n d

“Regulatory alignment is no longer a legal afterthought. It has become a core factor in managing risk and protecting asset value in AI-driven data centre investments.”

sign if ica nt inve stm e nt for h igh -d e ns i ty co m pute,

- Natascha Geraedts, Senior Office Partner Netherlands, Eversheds Sutherland

mod e ls th at align ca pital d e ployme nt wi th de m a n d

a d va n c e d c oolin g , a n d re silie nt p owe r.” G l o bal Sw itc h re spon ds th rough ph ase d deve l o p m e nt , strategic

pa r tn e rsh ips

and

d ive rs i f i e d

f u n di n g

a n d c ustom e r c om mitme nts.

“With the right financing structures and risk controls, capital-intensive AI data centres can be developed responsibly and at scale across Europe.”

Ph asin g

is

c ritical

to

ma n agin g

lin k in g

inve stme nt

to

mile ston e s

ex p os u re. and

By

a n ch o r

te n a nts, d eve lope rs ca n lim it d ow n s i de r i s k wh i l e pre se r v in g th e ability to scale ra pid ly o n ce de m a n d mate rialize s. De n sif ication of ex ist i n g ca m pus e s

- Son Lam, Director Digital Infrastructure Project Finance, NIBC Bank

fu r th e r improve s ca pital eff ic ie n cy a n d s h o r te n s time to reve n u e.

106

RISK MANAGEMENT BEYOND CONSTRUCTION Risk management for AI infrastructure extends

explains that early-stage projects typically rely on

well

Operational,

equity and balance sheet funding that can absorb

regulatory and reputational risks are increasingly

development risk. Once permits are secured, grid

interconnected.

the

access is credible and pre-letting is in place, a

growing importance of embedding compliance with

much broader pool of private debt and institutional

frameworks such as the EU Artificial Intelligence Act

capital becomes available.

beyond

financial

structuring.

Global

Switch

highlights

into investment decisions. Governance, security and data integrity are no longer abstract policy

As campuses grow in size, financing structures are

concerns, but material factors influencing asset

also becoming more granular. Instead of treating an

value and investor confidence.

entire development as a single asset, projects are increasingly financed in phases or components.

From a legal and structuring perspective, Eversheds

This provides flexibility for investors with different

Sutherland sees a clear segmentation of capital

risk appetites but introduces interface risk between

across

interconnected facilities. Managing those interfaces

the

development

lifecycle.

Natascha

Geraedts, Senior Office Partner in the Netherlands,

is becoming a core competency in its own right.

NIBC ON FINANCING AI DATA CENTERS AND MANAGING CONCENTRATION RISK

REGULATION AS A CAPITAL ENABLER

From a banking perspective, NIBC Bank sees AI data

Regulation plays a decisive role in shaping investment

centers as both capital-intensive and structurally

decisions. The EU AI Act introduces a risk-based

attractive. Son Lam, Director Digital Infrastructure

framework that directly affects how AI workloads

Project Finance at NIBC Bank explains that financing

are hosted and governed. For data center operators,

these

this means ensuring that physical infrastructure

facilities

combined

with

requires robust

structured risk

solutions

mitigation.

High-

supports compliance requirements tied to high-risk

density GPU infrastructure and advanced cooling

AI systems. Data protection and localization rules

significantly increase capex, but lenders can manage

under GDPR and national regimes further influence

this through phased drawdowns tied to construction

site selection and investment strategy.

progress and signed customer commitments.

Energy regulation adds another layer of complexity.

Throughout

the

credit

lifecycle,

performance

Grid

access

across while

Europe

is

sustainability

increasingly

covenants such as leverage ratios and interest

constrained,

coverage are used to monitor financial health.

around carbon, water usage and heat reuse directly

requirements

A specific challenge in AI data centers is tenant

affect design choices and financial models. In this

concentration. Facilities are often leased to large

environment, regulatory certainty becomes a form

AI tenants such as neocloud providers or GPU-

of risk mitigation. Clear and consistent rules reduce

as-a-Service operators, limiting diversification. To

uncertainty premiums and lower the cost of capital.

mitigate this, lenders perform detailed look-through analyses of tenant contracts, assessing contract

The conclusion across the sector is clear. AI-ready

duration, revenue visibility and the diversification of

data centers can be financed at scale, but only if risk

the tenant’s own customer base.

is actively managed across finance, operations and regulation. Higher upfront costs and technological

Despite

these

risks,

NIBC

sees

strong

growth

uncertainty demand more sophisticated structures

potential. AI-focused data center capacity in Europe

and

remains limited compared to the United States,

lenders

and

positioning AI as a major growth driver in the coming

financial

discipline,

years. “With the right structuring and risk controls, AI

regulatory compliance into a single strategy will be

data centres represent a compelling opportunity for

best positioned to deliver Europe’s next generation

both developers and lenders,” Lam notes.

of AI infrastructure.

107

deeper collaboration regulators.

between Those

operational

developers,

who

integrate

resilience

and

HIGH-DENSITY CONNECTIVITY FOR THE AI DATA CENTER ERA Artificial intelligence is reshaping data center architecture from the network outward. As AI training and inference workloads scale, they generate traffic patterns and bandwidth demands that far exceed those of traditional cloud environments. The result is a fundamental shift in how data center networks are designed, built and future-proofed.

High-density connectivity is no longer a specialist requirement but a core enabler of performance, reliability and operational stability in the AI era.

At the heart of this transformation is the explosive growth in east-west traffic. AI training workloads move vast datasets continuously between GPUs, creating sustained, latency-sensitive flows across the fabric. According to CommScope, scale-out back-end networks must now deliver non-blocking, ultra-low latency performance while supporting unprecedented bandwidth. “AI training creates large east-west packet flows, running at 400G, 800G and now 1.6T,” the company explains. These speeds are no longer edge cases. They are becoming the baseline for highperformance AI clusters.

TEXT: KRISTEL NIJSSEN (Bureau Landskroon) INTERVIEW: KEITH SULLIVAN & REP COMMSCOPE

MINIMAL DISRUPTION Th i s

escalat ion

co n sequ en ces Trad i ti o n al

m odula rity.

f ibe r

s o l ut i o n s

th at

ba ndwidth

has

network

a rc h ite ctu re.

su ppor t

n or th -south

allow ope rators to pivot as A I strateg i e s evo l ve.

des igns

opt imized

for

d ire ct

High -spe e d

in for

ra pid

in stallation

and

traf f i c are giving way to fully non-block in g spin e -

CommS c ope

h igh lights

l eaf fab r i c s that ca n scale predictably as A I

d e n sity

c on n e ctiv ity

cl usters g row. C ommScope emphas ize s th at th e se

leaf

arc h i tectu re s must not only deliver pe rforma n c e,

pe rforma n c e

but al so f l exibility. Network upgra des to su ppor t

scalability. As c luste rs ex pa n d , re du n da n cy a n d

n ew trai n i n g or inference workloa ds n e e d to be

flex ibility be c om e as im por ta nt as raw th ro ug h put

executed

in e n su rin g u n inte rru pte d data flow.

with

minimal

disrupt ion

to

ex istin g

f ibe r

a rc h ite ctu re s w h ile

in

th e

re co nf igu rat i o n ro l e

pa ire d

d e live rin g

e n ablin g

of

h ig h -

wi th

spine-

p re di ctab l e

ra p i d,

i nf rastr u ctu re. In AI env ironments where d ow ntim e tran sl ates

direct ly

into

lost

productiv ity

and

cost, ch an ge without interrupt ion is a d ef in in g requ i rement .

NETWORK DESIGNS MUST

Fi b er i nf rast ructure sits at the cente r of th is

BALANCE DENSITY

ch al l en ge. To keep pa ce with ra pidl y c h a n gin g

WITH MANAGEABILITY

deman ds, data centers must deploy c on n e ctiv ity fab r i c s

th at

combine

ext reme

de n sity

w ith

108

f l ex i b l e

FORTY- TO FIFTY-FOLD INCREASE AFL’s perspective reinforces just how dramatic the

In AI networks, the starting point is often 576 fibers

shift in fiber density has become. Keith Sullivan,

per rack, scaling up to more than 3,000. Managing

Director of Strategic Innovation at AFL, points out

this volume within the physical constraints of a data

that AI data centers require orders of magnitude

hall demands a new approach to fiber organization,

more fiber per rack than traditional cloud facilities.

routing and termination.

“On average, a traditional server rack receives between 20 and 30 fibers,” he notes. “By comparison,

Transmission

speed

and

congestion

avoidance

a server rack in a high-end AI data center receives

are the dominant design drivers. AFL points to the

over 1,000 fibers.” This forty- to fifty-fold increase

emergence of 51.2T switches delivering 800G per

fundamentally changes how fiber infrastructure

port as a defining milestone. Each of these ports

must be planned and deployed.

requires 16 fibers, pushing per-rack fiber counts to levels that were previously unthinkable. “With each the

port on a 51.2T switch requiring 16 fibers, the logical

challenge. Thousands of fibers from multiple server

shift in infrastructure is to a BASE16 construction,”

racks converge into a single leaf switch rack, resulting

Sullivan explains. This means designing cable counts

in up to 10,000 fibers terminating in one location.

and pathways around multiples of 16, using 16-fiber

Sullivan explains that this density forces operators to

ribbons and next-generation connectors rather than

abandon legacy planning assumptions. Designing in

legacy MPO8 or MPO12 formats.

The

consolidation

effect

further

amplifies

increments of 24 or 96 fibers is no longer sufficient.

REDUCING THE RISK CommScope arrives at a similar conclusion from the

Both companies also highlight the importance of a

perspective of future-proofing. High-density parallel

broad fiber portfolio. Singlemode fiber is critical for

fiber, MPO-based connectivity and modular patching

long-reach, high-speed links across large campuses,

systems form the foundation for next-generation

while multimode fiber remains well suited for short-

AI networks. Ultra-low loss fiber infrastructure is

reach connections between GPUs and leaf switches.

becoming essential as optical budgets tighten at

Preterminated cabling and optical shuffle solutions

higher data rates. Supporting 400G, 800G and 1.6T

accelerate deployment and reduce installation risk,

links requires minimizing loss across every interface,

an increasingly important factor as AI data centers

placing greater emphasis on precision-engineered

are built and expanded at unprecedented speed.

cabling systems and factory-terminated solutions.

Looking

ahead,

high-density

connectivity

will

Flexibility at the passive layer is a recurring theme.

continue to shape the economics and operability

CommScope

structured

of AI data centers. As architectures move toward

cabling systems that can support both MPO and LC

scale-across models and edge AI deployments

technologies, allowing the final interface strategy to

grow, network designs must balance density with

be defined closer to deployment. This decouples

manageability. The winners will be those who treat

long-term infrastructure investment from shorter-

fiber infrastructure not as a static utility, but as a

term decisions around transceiver form factors,

strategic platform that enables performance today

reducing the risk of stranded assets as optical

and adaptability tomorrow. In the AI era, connectivity

technologies evolve. In fast-moving AI environments,

is no longer just about moving data. It is about

this adaptability can be the difference between

unlocking the full potential of compute at scale.

stresses

the

value

of

smooth scaling and costly redesigns.

109

SMART DATA CENTERS FOR RAPID AI EXPANSION TEXT: KRISTEL NIJSSEN (Bureau Landskroon) INTERVIEW: NICO VERDONCK - TOM AAN DE STEGGE - PAUL CARTHY - WALTER LANG

The rapid acceleration of artificial intelligence is reshaping the data center sector at a fundamental level. AI workloads are not a gradual extension of cloud computing but a structural shift that affects power density, cooling demand, connectivity and operational complexity all at once. As a result, the data center of the future must be designed, engineered and operated as a single integrated system. Construction, power, cooling, networking and operations can no longer evolve independently if AI-ready capacity is to be delivered at speed and at scale.

Looking toward 2026, demand remains strong. Hyperscale cloud providers and AI-driven platforms continue to expand aggressively, and capital availability is not the limiting factor. According to Nico Verdonck, Global Senior Sales Developer Data Centers at Grundfos, the constraint has moved decisively toward execution. “Pipeline size is not an issue, but power availability, regulatory frameworks, and delivery timelines now influence outcomes,” according to Verdonck. In practice, success is increasingly determined by how efficiently projects can be delivered within tightening external constraints.

MARKET IS SHIFTING Co o l i n g strateg y is one of the most v isible a reas

Effe ctive n e ss a n d Wate r Usage Effe ct i ve n e ss m ust

of c h an ge. GPU-based AI workloa ds d rive ra c k

n ow be optimize d togeth e r to bala n ce e n e rg y a n d

den si ti es far beyond the limits of tra d ition al

wate r eff ic ie n cy. G ru n d fos a d d re sse s th i s th ro ug h

ai r- co o l ed fa cilit ies. Verdonck notes th at “th e

h igh -eff ic ie n cy

market i s shift ing from a ir to liquid coolin g a n d A I

wate r treatme nt solution s, sma r t co nt ro l s a n d

wo rk l oads i ncreas e power density, dri v in g h igh e r

wate r reuse strategie s ta ilore d for hig h - de n s i ty A I

co o l i n g d ema nd.” Direct-to-chip liquid c oolin g

a n d H PC e nv iron me nts.

pu mps,

pa c kage d

co o l i n g

and

i s rap i dl y becoming the default , fun da me ntally Spe e d of d e live r y is a n oth e r d ef in i n g fa cto r. To

al ter i n g mecha nical des ign a nd system integration .

m e et aggre ssive time lin e s, ope rators i n creas i n g l y Th i s tran si tion pla ces water ma nagem e nt at th e

re ly on off-site produ ction a n d p refab r i cat i o n .

center of data center design. High e r c oolin g

Pa ralle l

deman d

pre pa ration

i nt roduces

new

challenge s

a rou n d

fa ctor y

m a n u fa ctu rin g

sh or te n

lea d

tim e s

and

o n - s i te

and

re du ce

water so u rcing , t reat ment , reus e a nd mon itorin g.

proje ct risk . Ve rd on c k h igh lights th e a dde d b e n ef i t

Sustai n ab i l i ty is no longer a s econda r y obje ctive

of c ontrolle d

but a co re operat ional requirement. “As data

re du c e e rrors a n d improve re liability, a n i m p o r ta nt

centers

a d va ntage as syste ms grow m ore co m p l ex a n d

evolve

to

suppor t

la rge -scale

AI

produ ction

d e n se ly integrate d .

wo rk l oads, the conversat ion is shift in g from h ow mu c h capacity to how eff icient ly a nd susta in ably can we d el i ver it ,” Verdonck expla ins . Powe r Usage

110

e nv iron m e nts , wh i ch

GPU CLUSTERS

ROBUSTNESS AND SCALABILITY

Power infrastructure is undergoing equally significant

Smart operations complete the picture. Walter

change. Tom aan de Stegge, Senior Client Manager

Lang, Manager of Business Development at RoviSys,

Data Centres EMEA at Eaton Industries, emphasizes

notes a clear shift toward industrial-grade control

that

unprecedented

platforms. “We have seen a shift to use more

electrical and interconnect demands. “Traditional

industrial controls solutions from well-known OEMs

facilities optimized for general compute cannot

such as Rockwell, Siemens and Schneider Electric.”

handle

intensity of

These hardened systems provide the robustness

GPU clusters,” he says. Rack densities that once

and scalability needed to manage high-density AI

averaged 10 to 20 kilowatts now routinely exceed

environments while supporting standardization, off-

100 kilowatts, with current designs already allowing

site manufacturing and advanced procurement.

AI

workloads

the

thermal

introduce

and

electrical

for 200 kilowatts per rack.

Taken

together,

these

developments

define

a

new

new model for the sector. Smart data centers for

power

rapid AI expansion are built around integrated

distribution, redundant feeds and scalable UPS

design, modular delivery, liquid cooling, resilient

systems are becoming standard to support massive,

power infrastructure and intelligent operations. By

sustained loads. Network design is evolving in

combining precision engineering, smart monitoring

parallel toward low-latency, high-bandwidth fabrics

and

such as InfiniBand and 400G Ethernet to support

Verdonck concludes, “deliver HPC and AI-ready

distributed AI training. Operationally, AI clusters

capacity quickly, efficiently, and responsibly.”

Meeting electrical

these

requirements

architecture.

demands

a

High-amperage

sustainable

practices,

operators

require dynamic resource orchestration, workloadaware scheduling and predictive maintenance to minimize downtime. As Aan de Stegge observes, AI-ready data centers increasingly resemble highperformance computing environments rather than traditional enterprise facilities.

400-VOLT DISTRIBUTION From a design and construction perspective, AI is accelerating the shift toward modular, campusstyle data centers. Paul Carthy, Director of Business

THE DATA CENTER OF

Development at Mercury, explains that facilities must now be engineered for high-capacity medium-

THE FUTURE

voltage supplies and 400-volt distribution networks

MUST BE DESIGNED,

capable of supporting 50-to-120-kilowatt AI racks.

ENGINEERED & OPERATED

“Traditional air-based cooling is no longer viable, accelerating the shift to direct to chip liquid cooling

AS A SINGLE

with the associated piping, manifolds, and upgraded

INTEGRATED SYSTEM

mechanical plant required.” Modular, repeatable MEP systems enable rapid scaling while retaining flexibility

to

accommodate

evolving

end-user

requirements.

111

can,

as

POWERING DATA CENTERS IN CONGESTED TIER 1 MARKETS Across Europe’s Tier 1 data center markets, grid congestion has become one of the most decisive constraints on growth. In hubs such as Amsterdam, Frankfurt, London and Paris, electricity demand continues to rise while available grid capacity tightens. The rapid expansion of AI workloads, with their sustained and highly concentrated power profiles, is intensifying this pressure. For operators, the challenge is no longer whether congestion will affect expansion plans, but how growth can continue despite it.

The traditional model of relying almost entirely on guaranteed grid capacity is increasingly unworkable. Long connection lead times, uncertainty around reinforcements and curtailment risks are forcing a fundamental rethink of how power is sourced, stabilized and managed. Resilience and flexibility must now be embedded within the facility itself, supported by smarter interaction with the grid rather than full dependence on it.

TEXT: KRISTEL NIJSSEN (Bureau Landskroon) INTERVIEW: MATHIAS FRANKE- PETER MCGOEY - HUAWEI - CSB

SUPPORT THE WIDER GRID Huawei f rames this challenge prima rily as a n issu e

d istu rba n c e s a n d lon ge r-te rm bal a n ci n g n e e ds

of system

stability. As

i n c reases

a nd

gen erati o n

declines ,

ma inta ining

f requ en cy

becomes

more

renewable

convent ional

p e n etration

su c h as peak sh av in g a n d fre qu e n cy regul at i o n . In

syn c h ron ous

th is mod e l, e n e rg y storage evolve s f ro m a pass i ve

vo ltage

ba c k u p asset into a n a ctive pa r tici pa nt i n g r i d

complex .

and

ope ration s.

“G rid -

fo r mi n g en e rg y storage systems ca n brin g grid stab i l i ty an d bala nce, helping to solve c h alle n ge s

Ac c ord in g to Huawe i, effe ctive d e p l oy m e nt re sts

th at are emerging in the energ y network ,” th e

on th re e c lose ly c on n e cte d pilla rs . Th e f i rst i s

co mpany expla ins. Unlike grid-followin g syste ms,

th e quality of th e h a rd wa re, in c lu di n g a dva n ce d

g r i d -fo r mi n g ES S a ct ively establis h voltage a n d

powe r e le ctron ic s a n d robust inve r te r de s ig n . Th e

f requ en cy, e nabling data centers not o n ly to rid e

se c on d is grid -form in g algorith ms that dy n a m i cal l y

th ro ug h i n stability but also to suppor t th e w id e r

regulate syste m beh av iou r in re spon s e to ch a n g i n g

grid.

grid c on d ition s. Th e th ird pilla r is d e e p l y i nteg rate d inte llige n c e th at c oord in ate s h a rd wa re, s of twa re

In co n geste d Tier 1 ma rkets , this ca pability is

a n d ma rket sign als in real tim e. To geth e r, th e s e

i n c reasi n g l y

ca pa c ity,

e le m e nts allow grid -form in g syste m s to s cal e

i n er tia an d frequency cont rol a re unde r pre ssu re,

from pilot proje cts into m a in strea m data ce nte r

par ti cul ar l y during peak dema nd. Huawe i a rgu e s

infrastru ctu re.

releva nt .

Shor t-circuit

th at g r i d -fo rming ES S ca n a ddress both sh or t-te rm

112

BATTERY SYSTEMS an

lithium-ion systems deliver longer-duration support,

operational and risk mitigation perspective. As

fast recharge and peak shaving. “Battery systems

AI-driven workloads push power demand higher,

for both energy and power are key to mitigating

the company stresses the urgency of early action.

grid congestion,” CSB explains. With intelligent

“With AI driven workload increases, massive power

battery management, these assets enable demand-

is in need. Now is the time for operators to mitigate

response participation and reduce stress on utilities

delays caused by generation and grid bottlenecks,”

without waiting for major grid upgrades.

CSB

approaches

the

same

challenge

from

CSB states. The most effective response is a layered strategy

combining

on-site

generation,

On-site generation is also becoming a strategic

energy

asset. Gensets, fuel cells and hybrid configurations

storage and participation in flexibility markets.

allow operators to secure supplementary or primary Battery systems sit at the center of this approach.

power, increasing independence from constrained

CSB highlights the complementary roles of different

grids.

technologies.

purchase agreements, these solutions also support

High-rate

VRLA

batteries

provide

When

combined

grid

important in permitting and stakeholder acceptance.

UPS

transitions, while

are

power

decarbonisation

and

which

renewable

immediate power to manage inrush currents during disconnections

goals,

with

increasingly

REPURPOSING BROWNFIELD LOCATIONS

IRISH COMPANIES

Drees

planning

Enterprise Ireland adds another dimension through

perspective. Mathias Franke, DS expert, points out

modularisation and supply-chain capability. Peter

that innovative site concepts can unlock capacity

McGoey, Senior Client Advisor, explains that Irish

even in highly congested regions. Repurposing

companies are focusing on modular electrical and

brownfield locations, such as former power plant

power infrastructure, including substations and MV

or industrial sites, allows operators to leverage

and LV rooms manufactured and fully tested off-site.

existing infrastructure. Microgrids, hybrid energy

Drawing on experience from highly regulated sectors,

supply, renewable generation and battery storage

this approach improves build quality, reduces on-

reduce dependence on public grids and accelerate

site risk and supports faster commissioning.

and

Sommer

bring

a

broader

project timelines. In the short term, Franke notes that flexible energy models and capacity-based

Taken together, these perspectives point to a clear

pre-contracts are key to moving projects forward

shift. In congested Tier 1 markets, power is no longer

despite long grid lead times.

a static input but a dynamic system to be actively orchestrated. Advanced energy storage, on-site generation, modular infrastructure and intelligent control do not remove grid constraints, but they do

IN CONGESTED TIER 1

create viable pathways for growth. As AI reshapes

MARKETS, POWER IS NO

demand profiles, the ability to power data centers flexibly

LONGER A STATIC INPUT BUT

success.

A DYNAMIC SYSTEM TO BE ACTIVELY ORCHESTRATED

113

and

intelligently

will

define

long-term

DATA CENTER SECTOR EVENTS DATACENTER FORUM

INFRA AI SUMMIT’26

OSLO

ATHENS

26-02-2026

30-03-2026 - 01-04-2026

MOBILE WORLD CONGRESS

MIDDLE EAST & AFRICA FINANCE FORUM

BARCELONA 02-03-2026 - 05-03-2026

DCD CONNECT MADRID 06-05-2026 - 07-05-2026

ABU DHABI

THE TECH CAPITAL GLOBAL AWARDS LONDON 11-05-2026

07-04-2026 - 09-04-2026

DATA CENTRE WORLD (DCW)

DATA CENTER WORLD

LONDON

WASHINGTON

04-03-2026 - 05-03-2026

20-04-2026 - 23-04-2026

INTERNATIONAL FINANCE FORUM LONDON 11-05-2026 - 12-05-2026

DCD CONNECT NEW YORK 23-03-2026 - 24-03-2026

DATA CENTER FORUM

LEVELX

HELSINKI

18-05-2026 - 19-05-2026

BRUSSELS

23-04-2026

CLOUDFEST RUST 23-03-2026 - 26-03-2026

DATA CENTRE WORLD (DCW) FRANKFURT 06-05-2026 - 07-05-2026

114

ANGA COM COLOGNE 19-05-2026 - 21-05-2026

DATACLOUD GLOBAL CONGRESS

CAPACITY EUROPE

CANNES

13-10-2026 - 16-10-2026

LONDON

DATACENTER FORUM STOCKHOLM 03-12-2026

02-06-2026 - 04-06-2026

SINGAPORE CLOUD & DATACENTER CONVENTION SINGAPORE

AI & BIG DATA EXPO AMSTERDAM

CLOUD EXPO HOUTEN (NL) 02-12-2026 - 03-12-2026

20-10-2026

25-6-2026

DCD CONNECT

GARTNER IT SYMPOSIUM

GLOBAL AWARDS - DCD

BARCELONA

LONDON

09-11-2026 - 12-11-2026

11-12-2026

DATACENTER FORUM

DATA CENTRE WORLD (DCW)

TOUCHDOWN MIDDLE EAST

COPENHAGEN

PARIS

MANAMA

24-9-2026

18-11-2026 - 19-11-2026

DCN WARSAW

DATACENTRES IRELAND

LONDON 16-9-2026 - 17-9-2026

WARSAW 07-10-2026

DUBLIN 18-11-2026 - 19-11-2026

115