Datacentered - Issue 05

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TEAM DATACENTERED Supported by: ABB, ACT Connectivity Solutions, Aggrekko, Alara-Lukagro, All-Rack, AlternativeHEAT, APAC, Arcadis, Arup, ATS Global, Beveco, Blygold, CANS, CBRE, Chatsworth Products, Circle-B, Commscope, CONTEG, Coolgradient, Croonwolter&dros, CSB Energy Solutions, Danfoss, Dataports Groningen, Day Wireless Systems, DC People, DCByte, Deerns, Delta Electronics, DGMR, Drees & Sommer, Eaton, Econocom, Elinex, EPI Europe, Eversheds Sutherland, First-Case, Fluor, FNT, Forehand, Fortop, FujiFilm, Georg Fischer AG, Grundfos, Heijmans, Hochtief, Honeywell, Huawei, Hug Engineering, Kelvion, Kenter, Kobespa, Koninklijke van Twist, KWS Infra, Legrand Data Center Solutions, Leviton, Mace, Maunt, Mirapath, Netceed, NL-ix, Oleon, Panduit, Park Place Technologies, Paroc Panel System, Pathema, Piller, Polyned, R&M Europe, Rehlko, Rentaload, Riello UPS, Rittal, Rolls Royce, Royal HaskoningDHV, SADC, Schneider Electric, Schleifenbauer, Securitas, Simac, Sims Lifecycle Services, Soben, Socomec, SPIE, STULZ, Stroomkr8, Teckentrup, Trescal, TSL, Turner & Townsend, Unica Datacenters, Vattenfall, Vertiv, Victaulic, Volker Energy Solutions, Waterfall Security, Watts, Weiss Technik, Wesco Anixter, Workrate, Zwart

Publisher Dutch Data Center Association (DDA) Editor in Chief Pim Kokke Stijn Grove Art Director Sam Zondervan Asha Garib Marketing & PR Zoë Derksen Claire van der Bij Carole Santens Contributors Fulvia Beyer, Mels Dees, Julia Dilissen, Luís Duarte, Natascha Geraedts, Joni Israeli, Rita Lourenço, Ambrose McNevin, Hugo Onink, Niek van der Pas, Carlos Paulino, Melissa Scholten, Godfried Teunissen, Peter Vermeulen (Pb7 Research), Arjan Westerhoff, Juan Wimbleton, Bas van der Weijden, Dennis Wolbrink About Datacentered is a publication of Dutch Data Center Association. No part of this publication may be reproduced and/or disclosed by print, photocopy, film or any other means without written permission from the publisher.

Location Dutch Data Center Association Herengracht 342 H 1016 CG Amsterdam The Netherlands Advertisements For inquiries about advertisements, please contact info@datacentered.net

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Datacentered

Table of Contents

INTERVIEWS

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42

REBEL WITH A CAUSE Melissa Scholten

LOOKING BACK AND FORWARD: THE DEFINITION OF THE NORTHC DNA Alexandra Schless

ANALYSES & EVENTS

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24

114

DATA CENTERS: ARCHITECTURE AND THE IMAGINARY

WHO IS GOING TO PLAN, BUILD AND RUN THE NEXT DATA CENTER?

GREEN DATA CENTER CONFERENCE

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66

ENERGY MARKET UPDATE

EUROPEAN OUTLOOK 2025

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Table of Contents

Datacentered

EXPERT INSIGHTS

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48

NIEK VAN DER PAS AI Is Taking Over, But We Can Make It Sustainable?

ARJAN WESTERHOFF What is our future without the right people?

STIJN GROVE Data Centers at the Crossroads: Powering Europe’s Future in Geopolitics, AI, and Energy

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112

JUAN WIMBLETON Is Southern Europe set to become a global leader in the data center market?

PORTUGAL DATA CENTRE ASSICATION Portugal as the next leading data center hub

NATASCHA GERAEDTS Green Data Center Conference

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Datacentered

Editorial

THE NEXT GENERATION In this edition, you will also read what it takes to get more people excited about working in data centers. As everyone wants to mention the problem of staff shortage, big decisive actions fail to execute. Someone who has been a frontrunner in attracting people for the data center industry is Melissa Scholten of Digital Realty. In the portrait interview Rebel with A Cause, we discuss her career within the data center, as well as how the industry has changed.

The beautiful black and white photos by photographer Hugo Onink, stand out by not standing out.

While creating this edition of Datacentered, it was quickly decided to link it to the Kickstart Europe Conference.

That event is one of the biggest platforms where you can boost a brand like Datacentered. Moreover, both have something in common: they once started with the idea of doing things just a bit differently. This mindset also suits the next generation that gratefully uses the foundation that has been laid and gives it its own twist to make improvements.

Because when we look at the next generation of our industry, where are we going? For example, what do the data centers of the future look like? And who will pland, build and run the next gen data centers? Billions are being invested in building new facilities, so there should be no reason to panic. Still, we should not conveniently assume that everything will be fine.

By creating a magazine that pushes the boundaries of the well-known, I started thinking about the next generation.

It is hard to imagine what the world will be like 25 years from now, but it is certain that data centers will continue to influence our daily lives.

“There’s a responsbility to push boundaries, to show people something they haven’t seen before.”

Outside our inner circle, data centers remain an enigma to society. People have no perception of how data centers affect their daily lives (e.g., streaming, social media). And when they do have an idea, the power consumption debate of data centers comes around the corner again.

The negative perception surrounding data centers can be combated with figures and facts, but even more so with a strong narrative about the societal and economic value of data centers. This narrative becomes more wellknown for policy makers, which is of course a great development. Nevertheless, in the public eye data centers remain buildings that are noticed by not being noticed.

Rick Owens

The latter was also the inspiration for this edition’s cover.

By creating something that is not the status quo, we are pushing the boundaries of the status quo for IT magazines.

In addition, the image is always in motion, which also fits within how the data center industry is moving. Someone who has managed to articulate this feeling is Fulvia Beyer of Nio architecten. She has written a wonderful essay on the imaginary data center, and in doing so, she has given a lead for people to think differently about what the data center of the future might look like.

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Editorial

Datacentered

Pim Kokke Editor-In-Chief

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Datacentered

Analyses

DATA CENTERS: ARCHITECTURE AND THE IMAGINARY WE MUST APPROACH DATA CENTERS NOT AS MERE TECHNICAL CONTAINERS, BUT AS VESSELS OF IMAGINATION, AND ELEVATE THEIR ARCHITECTURE TO MATCH THE BOUNDLESS CREATIVITY THEY SUPPORT. TEXT: FULVIA BEYER

At the heart of architecture lies an intimate dialogue between the real and the imaginary. The design process begins not with the laying of a brick or the drawing of a line, but with an idea—a spark ignited by the unexpected. There is always a source, a moment that serves as the beginning of this journey: a plant’s delicate growth, an animal’s movement, a figment of reality caught between waking and dreaming, or even something as fleeting as a note from a song or a frame from a film. This first breath is the essence that breathes life into the creation, the invisible trigger that transforms vision into form.

The building, when complete, must not only stand as a testament to function and form but also speak to the invisible forces that first inspired it.

The embodied imaginary is not just in the visual identity of a building, but in the air that circulates through it, the light that filters through windows, and the sound that fills its spaces. It is the architect’s responsibility to craft an environment where people can find themselves in both the imagined and the real. Once the path to creation is chosen, the next step is akin to sculpting from the raw essence of the idea.

Architecture, which is more than just a building, is the embodiment of this first breath. It is not just about solving spatial problems but about capturing the imaginary and weaving it into the physical world. This breath carries the senses—smell, vision, touch, and sound—all flowing together in harmony, asking the fundamental question: How will this creation feel?

This phase transforms abstract ideas into tangible realities, where every decision influences the atmosphere and emotional resonance of the space. Here, imagination and creativity flow into more concrete questions: What color does the sensation of floating have? Which texture embodies tranquility? Similarly, what materials or forms best capture the sensations of immersion, expansion, or curiosity?

The Imagination as a Catalyst Design is fueled by imagination, and the architect serves as creator and interpreter of the initial spark. In every great design, there is a moment where reality meets fantasy, where a figment of the mind connects to something tangible. For some, the trigger might be the shape of a leaf, a silhouette of a tree in winter, or the texture of a rugged stone surface.

For others, inspiration might emerge from less perceptible sources: a movie scene that evokes nostalgia, a song that captures the rhythm of life, or a sudden awareness of space and time that ties them to the environment. The challenge for the architect is to harness this trigger and translate it into something real.

The Art of Animation: Breathing Life into the Soulless Animation is a craft where the extraordinary emerges from the ordinary, a process that gives soul to something soulless. In animation, as in architecture, this transformation requires an intimate understanding of the intangible.

A gesture, a movement, a shift in perspective—all contribute to the story being told, to the life that is being created.

And much like architecture’s first breath, animation’s soul is born from the spark of imagination, a flash of inspiration that takes on form and rhythm.

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Analyses

Datacentered

Nio Architecten, The Caleidospe, 2023

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Datacentered

Analyses

“Animating or designing something has nothing to do with following an academic linear process from fuction to form. The designer is the developer of a soul- stirring experience, using their limitations, irrationality, their imperfections do create.”

Maurice Nio Nio Architecten, Still Motion, 2020

Practical Design Concepts for Data Centers: Innovation Beyond Functionality Incorporating creative design thinking into data center architecture not only addresses functional requirements but also opens the door for exceptional innovation. By embedding the natural forces of the environment into the design, data centers can become cutting-edge symbols of sustainability and progress.

Why we need to reimagine Data Centers as Creative Spaces Data centers, at first glance, may seem like the most utilitarian of buildings—designed for function and efficiency. These sprawling, industrial structures often appear cold and soulless, built solely to house the servers and infrastructure that power our digital world. But what if we thought differently about them? What if, instead of designing these buildings as mere storage facilities, we approached them as creative houses for the unlimited potential of human capabilities?

For example, water plays a central role in both the environment and the data center’s operations. For many years, water has been crucial to data centers for cooling systems, and this relationship can inform the architectural design in innovative ways. The H2O concept for the masterplan, consisting of three buildings, integrates water into both form and function. The façade design, with its protective aluminum panels, not only shields the structure from intense sun exposure but also collects rainwater, contributing to the building’s sustainability by reusing the water for cooling or other operational purposes.

Just as the art of animation gives soul to the soulless, transforming the ordinary into the extraordinary, so too can we breathe life into data centers. These structures—often perceived as dull, mechanical, and lifeless—are the backbone of modern creativity and innovation.

Why shouldn’t their design reflect that same creative spirit? In animation, every frame can evoke emotion and meaning, turning simple drawings into living, dynamic characters. Similarly, data centers, if designed with intention and imagination, can transcend their industrial origins and become symbols of innovation, progress, and human potential.

This multi-layered approach transforms what could be a standard façade into a high-performance element. The panels act as a metaphor for the fluidity and essential nature of water, creating a visual identity that also enhances energy efficiency. This exemplifies how practical challenges, such as sun exposure, can be addressed while embracing the site’s environmental characteristics, leading to an aesthetically and functionally superior solution.

Data centers power the digital worlds where creativity knows no limits, from the arts to science, from communication to commerce. These buildings, while housing technology, are also repositories of human dreams and possibilities. If we approach them not as mere technical containers, but as vessels of imagination, we can elevate their architecture to match the boundless creativity they support. Through thoughtful design, we can transform these structures from functional shells into extraordinary environments that inspire those who engage with them — both physically and digitally.

Another example, where high wind exposure is a defining feature of the site, is the concept of wind that forms the foundation of the design. Wind, often seen as a challenge in projects, becomes a driving force for both the design and function of the data center. A ventilated façade symbolizes roots, anchoring the building in a way that mirrors the stability and reliability of the data center’s operations.

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Analyses

Datacentered

Nio Architecten, ICEcube

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Datacentered

Analyses

Nio Architecten, ICEcube, 2022.

Community

Product

Heatpump

Greenhouses

Heat

Data Center

Aquaculture

Nio Architecten, ICEcube, Data Center and Circular Economy 2022.

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Analyses

Datacentered

Nio Architecten, ICEcube Axonometric Section, 2022.

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Data Center

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Analyses

Nio Architecten, AQA, 2024

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Nio Architecten, AQA Shade Simulation, 2024

Nio Architecten, AQA Radiation Simulation Before, 2024

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Nio Architecten, AQA Axonometric Section, 2024

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Nio Architecten, AQA Radiation Simulation After, 2024

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Analyses

Nio Architecten, The wind flow, 2023

N N N N Calm(0km/h) Calm(0km/h) Calm(0km/h) Calm(0km/h) Light Light Light Air(1,1km/h) Light Air(1,1km/h) Air(1,1km/h) Air(1,1km/h) Light Light Light Breeze(5,8km/h) Light Breeze(5,8km/h) Breeze(5,8km/h) Breeze(5,8km/h) Gentle Gentle Gentle Gentle Breeze(12,2km/h) Breeze(12,2km/h) Breeze(12,2km/h) Breeze(12,2km/h) Moderate Moderate Moderate Moderate Breeze(19,7km/h) Breeze(19,7km/h) Breeze(19,7km/h) Breeze(19,7km/h)

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Nio Arc

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Nio Architecten, Axonometric Section, 2024

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Nio Architecten, Energy Generation, 2024

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Analyses

Nio Architecten, AQA, 2024

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Datacentered

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Datacentered

Analyses

Reframing Data Center Design: A New Perspective for Authorities and Communities While data centers are crucial to our digital infrastructure, they often face significant challenges during the approval process, particularly from local authorities and communities. Many projects are blocked or delayed due to concerns that these large, industrial structures are too invasive or visually incompatible with their surroundings. In regions such as the UK, for example, data center proposals have been rejected on the grounds of their environmental impact and failure to integrate with the natural or urban landscape When we shift our design thinking on data centers, seeing them as more than just technical hubs but as opportunities for creative and urban innovation, we begin to change how they are perceived by all stakeholders. By reimagining these projects through a more thoughtful, creative lens, even local authorities will view these interventions with a favorable eye. Projects that were once seen as industrial and perhaps intrusive can now be framed as catalysts for urban revitalization, contributing to the cityscape in meaningful ways.

Communities, too, will be more open to embracing these developments. A creatively designed data center can become a point of pride for neighborhoods, a symbol of innovation that requalifies old spaces and brings life to the obsolete. As the data center sector experiences rapid growth, we have a unique opportunity to ride this wave and incorporate them into the broader fabric of urban spaces, transforming forgotten buildings and underutilized land into dynamic environments that benefit both the digital world and the local community.

By integrating data centers into cities as thoughtfully designed spaces, we not only meet the functional needs of our digital future but also create vibrant, aesthetically pleasing, and socially beneficial environments. These reimagined spaces become part of the urban narrative, enhancing both the physical landscape and the communities that surround them.

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Xchange Ideas

Xcelerate your Business

Xpand your Network

DigitalX is the C-level strategy & networking conference for the Belgium Data Center and Digital Infrastructure industry. Based in Brussels, DigitalX provides a platform for thought leaders and industry Xperts to establish plans for the future of the digital industry.

WELCOME EVENING - Monday May 12

CONFERENCE DAY - Tuesday May 13

Datacentered

Analyses

WHO IS GOING TO PLAN, BUILD AND RUN THE NEXT DATA CENTER? EVERYBODY WILL ACKNOWLEDGE THAT THE DATA CENTER INDUSTRY FACES THE STAFF SHORTAGE IN THE UPCOMING YEARS. AS THE WORLD’S POPULATION IS AGEING AND (NEW) ENGINEERS ARE HARD TO FIND, IT IS TIME FOR CONCRETE ACTIONS. HOWEVER, AS AN INDUSTRY, WE ARE VERY KEEN ON MENTIONING THE ‘PROBLEM’ BUT MOST OF THE TIME THESE ACTIONS/SOLUTIONS REMAIN MORE ABSTRACT. THAT IS WHY DATACENTERED HAS ASKED DC PEOPLE AND EPI EUROPE TO SHARE THEIR THOUGHTS ON THIS MATTER, INCLUDING USEFUL TIPS ON HOW TO ATTRACT NEW PEOPLE TO YOUR COMPANY.

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Analyses

Datacentered

THE BIG SHORTAGE IN THE INDUSTRY TEXT: Godfried Teunissen (DC People)

The dust is settling regarding the run on talent in the Dutch data center industry. Not because the holy grail in talent acquisition and retention has been found, but due to local government-imposed building restrictions caused by questions regarding environmental impact and a lack of available power, growth has almost come to a standstill.

That’s why in the last year data center companies were able to (almost) catch up on their staff shortage – a blessing in disguise.

So, what are some steps in the right direction? First and foremost, promote the industry in schools, colleges, and universities. There are so many fascinating opportunities within the data center industry that students aren’t aware of – from design to operations and everything in between, there’s something for everyone. And while promoting the industry is the most important, don’t forget to catch them at the gate when they leave with a degree.

However throughout Europe this isn’t the case and demand for talent remains as high as ever. Unfortunately the industry is competing against other mature tech-heavy industries with a big legacies in career paths and opportunities. This will make candidates more hesitant or even in the blind to apply for a position in the data center industry compared to any other well-known industry.

Furthermore invest time and money in reschooling and training of potential candidates. Develop easy accessible tools to test if candidates have the potential to succeed in certain positions. And if these candidates are the right fit, give them all the training, guidance and time that’s needed to succeed.

With the surge of AI the time and effort to develop tools and training can significantly be lowered, which could also help breaking to vicious circle mentioned earlier. Some great initiatives are popping up all across Europe between companies, associations and colleges to create industry awareness among the next generation of workers. Together with initiatives in schooling and training of new employees, these are promising steps in the right direction.

Adding to this challenge, when there is a shortage of personnel, a recurring vicious cycle emerges; with not enough time to complete the tasks and responsibilities that come with a job, there certainly won’t be time to train and guide new personnel. But without new personnel there won’t be a change in the situation as whole.

With the industry maturing and data center companies growing larger and larger another saying becomes more relevant than ever: people don’t leave jobs, they leave managers. It might sound a little short sighted, but there is certainly some truth to be found in it. Due to the rapid growth of the industry, rapid career growth became very common.

Highly skilled and knowledgeable people skyrocketed into positions where leadership became a priority. But in these new positions they couldn’t excel like they did before – which ultimately affected their teams.

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Datacentered

Analyses

However the solutions above are only focused on the acquisition of talent, and not retention. Someone with a high job satisfaction is less likely to switch to a new job and this is due to three factors; valuation (salary), opportunity for growth and team and company culture.

These are all directly impacted by leadership. Because of that, having the right people in the right position is of utmost importance. And for these people the same rules apply – give them the right tools, training and guidance to let them excel and they will be impactful.

Solving the talent shortage in the data center industry means focusing on both finding and keeping skilled workers. By raising awareness, investing in training, and supporting good leadership, the industry can build a strong workforce ready to handle future challenges.

Biography Godfried Teunissen is Head of Operations at DC People with offices in the Netherlands, Belgium and Norway, they specialize in finding and connecting the best professionals with the industry throughout Europe. With a history in designing, building and operating data centers DC People knows the industry at his core and helps their clients with workforce planning, short and long term staffing solutions and projects.

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Analyses

Datacentered

CREATE CONTINUOUS LEARNING OPPORTUNITIES Datacentered spoke with Dennis Wolbrink (32), the data center training specialist at EPI EUROPE and Vijfhart IT Opleidingen to explore the root causes of this issue and discuss actionable steps to secure the future of the industry.

We also need to recruit from adjacent industries. For example, professionals from oil and gas have skills in power systems and thermal dynamics that are directly applicable to data centers. In Norway, we’re working on an initiative to transition these professionals into our sector, providing targeted training to help them adapt to the unique requirements of data center operations.

Q: The European data center industry is facing a significant skills gap. Why do you think this problem persists, and how does EPI view the situation?

Q: How do sustainability and diversity factor into addressing these challenges?

The skills gap has been a persistent issue, but the increasing demand for digital infrastructure has made it more pressing than ever. At EPI, we see several contributing factors: the pace of technological evolution, a shortage of industry-specific training programs, and the retirement of seasoned professionals without adequate replacements.

Compounding this is the disconnect between traditional educational institutions and the specialized needs of our industry. Data centers are complex ecosystems requiring expertise across IT, engineering, and facility operations—a combination that isn’t typically covered in conventional curricula.

Sustainability and diversity are essential. Many young professionals are drawn to careers that align with their values, particularly environmental responsibility. Data centers are at the forefront of green initiatives, from waste heat utilization to renewable energy adoption. Highlighting these efforts can make the industry more appealing to new talent.

Diversity is another critical area. Women, for instance, remain underrepresented in the data center workforce. By fostering an inclusive culture and showcasing diverse role models, we can attract talent from a wider demographic. Diversity isn’t just about fairness—it brings new perspectives and ideas, which are crucial for innovation in a rapidly evolving industry.

Q: Many organizations highlight the problem, but few provide actionable solutions. What is EPI doing differently?

Q: What’s your vision for ensuring the long-term sustainability of the data center workforce?

At EPI, we believe in solutions that drive measurable impact.

One of our flagship initiatives is the EPI Data Center Futurist Scholarship Program, where we’ve committed over $1 million to support aspiring data center professionals. This program offers partial and full scholarships, giving students, job switchers, and unemployed individuals access to world-class education and internationally recognized certifications.

Collaboration is the cornerstone of long-term success.

Partnerships between industry leaders, governments, and educational institutions are crucial. For example, our partnerships with technical schools integrate EPI’s international standards into their curricula, ensuring students graduate with the skills employers need.

We also collaborate with organizations like Digital Realty through initiatives such as the Digital Realty Academy. EPI provides the curriculum and certifications, while Digital Realty facilitates hands-on implementation. This kind of partnership ensures participants are not only trained but also ready to contribute from day one.

Additionally, programs like the Norwegian initiative and the EPI Scholarship Program demonstrate the power of aligning resources across sectors. By creating clear career pathways, offering continuous learning opportunities, and embracing diversity, we can build a resilient workforce ready to plan, build, and run the data centers of tomorrow.

Equally important is our work with technical schools across Europe. These schools train the talent of tomorrow, and by integrating our international standards into their programs, we ensure that graduates are equipped with the knowledge and certifications needed to excel in this field. This alignment between education and industry is critical for long-term success.

Q: Beyond scholarships and partnerships, what else should companies focus on to close the gap?

It’s vital to look beyond recruitment and invest in the full employee lifecycle. A robust onboarding program, coupled with mentoring and in-house role-based training, sets new hires up for success. Certifications and continuous professional development should also be part of the package to keep employees engaged and up to date with industry advancements.

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Datacentered

Expert Insights

ARJAN

WESTERHOFF 28

Expert Insights

Datacentered

WHAT IS OUR FUTURE WITHOUT THE RIGHT PEOPLE? We can no longer live without the digital world, and it is only getting crazier. Despite the fact that there are still people who think that we no longer need data centers because everything is in the cloud, there is more need for data centers than ever, especially now with AI.

Especially nowadays it is becoming increasingly important that we continue to make the right decisions based on the big picture. There is increasing attention for the impact of data centers in our society and a result of that is new(er) regulations.

More than ever, we need skilled professionals to design, build and, more importantly, manage data centers. I have been working in the data center industry since 2000 and back then it was actually very simple: if you worked in a data center, you were expected to understand all aspects. In short, you knew how the data center functioned.

More than ever, we need people who see the big picture in supporting policy makers so that we get regulations that are feasible and actually ensure a more sustainable world.

Don’t get me wrong, we desperately need regulations to become more sustainable. With the growth that this industry is currently experiencing, new data center organizations are constantly being added, all of whom have their own interests, which is also obvious.

Nowadays it is slightly different. First of all, there is a major shortage of technicians in general and therefore also in the data center industry. It is very difficult to bind young, driven technical people to your company. If you do succeed, in many cases there is another point of attention. These days, there are more specialists in a certain field. Think for example of power, cooling or controls. Veterans who oversee the big picture of a data center are retiring and these gaps are not being filled sufficiently with people who oversee the big picture. After all, there are more specialists available in a certain field.

However, we must not forget one thing; we are in this together.

Through even better cooperation within the National Datacenter Trade Organizations, the European Data Center Association, the Climate Neutral Data Center Pact, but also the ISO/IEC 30134 that manages the Key Performance Indicators, we can work on this together.

The other side of the story is that the techniques applied in combination with availability and sustainability are more complicated than in the past. For years there has been a demand for more skilled technical staff, but we should certainly not forget the professionals who continue to see the bigger picture and not just from an operational perspective.

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Interview

RE WITH

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Interview

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BEL A

CAUSE TEXT: PIM KOKKE INTERVIEW: MELISSA SCHOLTEN PHOTOGRAPHY: HUGO ONINK, LIFESHOTS PHOTOGRAPHY MAKE-UP: NICKY RUISCH

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Datacentered

Interview

IT’S A RAINY DAY IN AMSTERDAM. AND WHILE HEAVY RAIN CAN AFFECT ONE’S MOOD IN MANY CASES, THERE ARE ALWAYS EXCEPTIONS TO THE RULE. MELISSA SCHOLTEN, WORKING AT DIGITAL REALTY. IN EVENT PHOTOS, AMONG A SEA OF BLUE SUITS, YOU ALWAYS SEE SOMEONE WEARING BEAUTIFUL COLORED JUMPSUITS, SUITS OR JACKETS. AND THEN YOU IMMEDIATELY KNOW: THAT’S MELISSA. BECAUSE CLOTHES THAT ANOTHER PERSON MIGHT BE LABELED AS “EDGY” AND “INAPPROPRIATE FOR THEIR SURROUNDINGS” CAN ALSO BE DEFINED AS “THE VISUAL EXTENSION OF SOMEONE’S PERSONALITY” OR “AUTHENTIC.

Maybe that’s why some of you will think why this photo shoot is in black and white when someone is known for wearing the most colorful outfits. But the idea came to minimize anything that could possibly distract from the story. Call it “standing out without being noticed,” a thought that fits within our industry where many people don’t know what goes on behind the scenes. But also with Melissa herself who hesitated beforehand to tell her story this time. The backlash was short but powerful: why not? And so this happened: Pim Kokke (PK): “Could you tell me the story on how you got into this industry?”

Melissa Scholten (MS): “I got into the data center industry by coincidence seven years ago at Interxion (now: Digital Realty). I worked in real estate as a marketing manager and was approached by a recruiter. He then told me about a position in an international IT organization and asked if I would be interested. My first thought was that IT was not for me. Later I heard that it was a data center organization, but I did not know at all what a data center was. But the recruiter really thought that I was a good fit for this organization.

I had a really nice phone interview and then went on to a job interview. On the data center site, I became impressed with the concept of data centers, how important they are to the economy and how dynamic the industry is.”

Melissa discovers the dynamics of the industry when, 3 months after her appointment, she is approached by DELL Technologies for the Girl’s Day initiative. This initiative is intended to introduce and enthuse girls between the ages of 10 and 14 to STEM, engineering and IT and the related professions. Melissa also noticed that she was one of the few women within the data center. “I immediately said yes, because I think it is very important to introduce women and youth to data centers in a broad sense. At the time, it was a bold move though, because I had the idea of giving tours inside a data center to young people and that was not common before.”

But despite initial reluctance about the idea, the tours became reality. According to Melissa, it was a bit of a puzzle, because the students cannot identify themselves with their ID-card while, in the meantime, the security of the data center must be maintained. “I wanted to show them the real work environment, so they have a good idea of what’s going on in data centers.” In addition, the theme of ‘Vlogging,’ which was still emerging at the time, was chosen. In addition, the world was also different seven years ago.

Data centers were a hidden world, few people knew what it was and fierce public opinion was not yet prevalent. Because of this, Melissa came to the realization that it is a shame that so few people know how a data center works and what value it offers for the digital transformation.

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PK: “Isn’t the data center industry a little too self-absorbed?”

MS: “At the time, certainly. Now you do see a bit more movement in that, which also definitely has to do with the shortage of technical staff. But back then everyone was mainly concerned with keeping everything up and running 24/7 and less on their public image. I believe that you do have to show that you are an important part of the economy. At that time, I looked with the team at how we position ourselves as an employer and as a place where we need more women. I dare to say that I pioneered this within the Dutch data center industry. Most people in the industry were also quite surprised by what we were doing.”

Melissa’s role as a catalyst for more women in the data center industry was also picked up 6 years ago by the Uptime Institute. On stage at one of the institute’s events, Melissa got to share her views on this topic for an audience that was mostly men. In preparation, she went looking for figures on the number of women working within data centers. But since no figures on this matter were known, Melissa decided to contact the Dutch Data Center Association to jointly research the work employment within the industry.

This revealed that in 2019, only 7% women were employed in the data center industry, 0.6% of which were in technical roles. During the presentation, she also indicated that if these numbers do not change, the long-term growth of the industry will be at risk. The study on work employment has taken place biennially since then, and by 2023 the percentage is down to 3% female technical roles.

For Melissa, the most eye-catching confirmation of her role model position comes when she receives a call from Equals Amsterdam, an organization dedicated to equality for women in the tech and business industry. She is asked to participate in the role models campaign during International Women’s Day through which she was pictured throughout Amsterdam.

PK: “Did you find it exciting at first to end up in this role model position?”

MS: “Yes, but at the same time an honor because it is an important issue and it is much needed to see more women in the industry.

However, normally I don’t like to be in the picture like this because I prefer to work behind the scenes. But in this specific case, I took the opportunity to make my own statement here by taking a picture with both my daughters because they are the new generation.”

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But to make an impact, you sometimes have to take chances and put yourself on display without detracting from the message you want to convey. Melissa’s magnum opus follows in 2023, when she releases her first data center children’s book starring two girls, titled Adventures in the Cloud World.

PK: “How did you get this idea?”

That was an eye opener for me to not work too much when they are around despite the fact that within marketing you have to switch very often. Furthermore, it’s sometimes hard to keep work and personal life separate. Most importantly, I hope they look back later and see me as an example of how you can achieve something with working hard and that you have to seize opportunities and not let prejudice hold you back.”

MS: “Well, initially I was actually developing a big puzzle in which you can see a data center and the entire digital ecosystem. However during a visit, the company who would make the puzzle showed that they could also produce children’s books. When I saw that, the focus then shifted to making a children’s book because that fits exactly with all the things I am doing as for example Girls’ Day, presentation slides for children about data centers and two data center games for young people. Yet, it was really an out-of-the-box idea and initially kept the project to myself.”

PK: “You’ve worked at a brokerage firm, recruitment organization, advertising agency and had your own business in the music industry. That’s obviously incredibly broad. Does it characterize you as a person to make the most of everything everywhere?”

PK: “But there comes a time when the idea has to become a reality.”

PK: “But how would you respond if one of these balls would fall?”

MS: “That is true, but I still wanted to keep it a secret for a while.

Because if I was going to do it, it had to be perfect just as I had it in my mind and I was a little bit excited on how colleagues and the industry would react to it. A children’s book is quite far from my day-to-day business as a marketer, although I believed 100% in what this book could mean in terms of awareness. When finally the book was finished and published, something very beautiful was created and it happened faster than I expected.”

MS: “Then that’s okay, because you can’t do everything 100% right.

If something goes wrong, so be it. It’s not in my character to dwell on that for very long. You learn from it and move on. That’s also something I tell my kids.”

The first Dutch-language print run of 1,000 books is off at lightning speed and has been published in nine languages worldwide within a year. The second book, The Datavirus in the Submarine Cable World, was released subsequently during Cyber Security Awareness Month in October 2024. In addition, Melissa talks about how she gets weekly messages on LinkedIn from parents working in the industry requesting the book, which she always does in person. The book is also winning awards as for example, the 2024 Digital Infrastructure Action Award from The Global Tech Capital. Melissa: “I never thought it would have such a global impact. For example, a colleague from the Nordics gave the book to his children, who recognized themselves in the characters and then dressed identically and had themselves photographed in the data center for a social media campaign.”

MS: “Yes, I think so. I try to think outside-the-box to stand out in the work I do. That also comes from what you run into and the piece of luck you have sometimes. When I came into the industry, people were used to keeping the doors closed, whereas I saw an opportunity to actually show the world who we are. That was a bit rebellious at the time, but I believed in that vision. If I believe in something, I also find it difficult when I am held back. And even if that happens, I do always try to find a way in which something can still fit and it still succeeds.”

PK: “You and your two daughters were at the center of the Equals campaign. How important are your children to you?”

MS: “They mean everything to me. I work hard, but in essence I am a mother of two beautiful daughters (ages 5 and 8).”

PK: “How do they look at you?”

MS: “That is a good question. I think they saw in the time during the pandemic what my job is. I vividly remember when my youngest daughter wanted to play a role-playing game and said, “You are now Lieffie” and I am Mama.” Then she sat in front of me with her toy laptop of Dora the Explorer and I had to ask her something, to which her response was, “No, not now sweety, I’m working” (Melissa laughs).

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MS: “100%. That may also be my pitfall, because I want to keep all the balls in the air and never say ‘no’ to anything. The latter is also a learning moment for me, to say no more often despite the fact that it will always be a character trait to give it all.”

PK: “A Rebel with a Cause makes sure that he or she gets to a place, analyzes what is going well and what could be better and then starts to make changes. Would you see yourself in this way?”

Melissa had to bring an object that she believes symbolizes her as a person. It became a black and white image of a cockatoo, a bird that occasionally leaves its crest upright. But in general, a cockatoo is not necessarily a bird that stands out. Standing out without being noticed is just like a marketer who occasionally shows a glimpse of himself or herself to show what they stand for.

Just like a rebel with a cause.

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NIEK LEGRAND DATA CENTER SOLUTIONS

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AI IS TAKING OVER, BUT WE CAN MAKE IT SUSTAINABLE? Last week, I had an interesting discussion with my daughter, who teaches at the Freie Universität Berlin. She expressed frustration over her students’ growing inability to reason without first consulting ChatGPT. In just two years of using AI tools, this concerning dependency has taken hold, with students increasingly relying on the instant answers provided

by AI. Equally concerning is that the widespread use of all these AI tools consumes an incredible amount of energy.

How can we address this? By the end of our discussion, we reached an agreement. Read on, and you’ll discover what we concluded!

Currently, Legrand, Dell, and TNO are collaborating on a demonstration program to leverage a recent TNO invention: a micro cooling structure for high-power chips. This system will produce waste heat at a temperature exceeding 70°C, ideal for reuse by district heating systems without requiring a heat pump.

Returning to AI, the ISO/IEC committee SC39 on Sustainability, IT, and data centers is developing a technical specification for Digital Services Ecodesign. They are collaborating with SC 42, the committee responsible for standardisation in Artificial Intelligence, to evaluate how AI can measure and administer Ecodesign practices.

As I have written in a previous column, we can’t improve what we don’t measure. To apply this principle to AI, we need to examine its structure in more detail. By doing so, we can identify where, what, and how to measure its impact.

A rough analysis reveals that AI operates through two key processes. First, a model is trained. Then, after fine-tuning and optimisation, it can be used. This second phase is referred to as inference, which is when an AI model produces predictions or conclusions from new data. Both processes consume natural resources, and to assess their sustainability, we must look at different aspects of their environmental impact.

These initiatives are all part of the toolbox needed to ensure the sustainable use of AI. In the rush of building a AI ecosystem, it’s essential that we do not forget to apply these tools. I can almost hear you say: “Don’t forget to look at the resource use of inference.” The good news is that inference mainly runs in either data centers, where we know how to make them sustainable, or it runs on edge devices like mobile phones.

And mobile devices, by design, must be resource efficient as they are small, light, and have a limited battery capacity, which forces designers to make energy-efficient software.

A good starting point is to look at the ISO 14000 series. These standards focus on environmental management systems and are intended to enhance environmental performance. The ISO14040 provides a framework for Life Cycle Assessment (LCA), applicable to tangible and intangible products. To run AI, computer hardware and infrastructure are essential. By applying these standards, we can make informed choices in our selection of products that will minimize environmental impact. Legrand has been committed to sustainability for over a decade, creating PEP ecopassports for our products based on ISO 14025.

I am currently involved in designing a multi-megawatt modular AI data center project where deployment speed is a critical driver. This project provides a perfect opportunity to demonstrate to my daughter how the lessons learned can be applied to avoid wasting our resources and to use them efficiently. Meanwhile, my daughter is committed to encouraging her students to think critically and develop their own answers, instead of copying and pasting an automated ChatGPT response.

The primary resource AI consumes during both training and inference is electrical energy. Therefore, to reduce its impact, using renewable energy is key. For data centers, the ISO/IEC 30134 series of KPIs can help to monitor and measure this influence, using valuable metrics like Renewable Energy Factor (REF), Carbon Usage Effectiveness (CUE), and Energy Reuse Factor (ERF). The ERF, in particular, highlights a unique opportunity for AI to reuse the energy generated by data centers.

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LOOKING BACK AND FORWARD: THE DEFINITION OF THE NORTHC DNA DATACENTERED SPOKE EXCLUSIVELY WITH ALEXANDRA SCHLESS, CEO OF NORTHC DATACENTERS, ABOUT THE FIFTH ANNIVERSARY OF THE REGIONAL DATA CENTER OPERATOR, THE INDUSTRY, AND THE NORTHC DATACENTERS DNA.

TEXT: Pim Kokke

Pim Kokke: “Five years of NorthC Datacenters is a Schless talks about the initial introductions and wonderful milestone.” the first few weeks, which are mainly about getting to know the people in the organizations. Plans for Alexandra Schless: “Absolutely! We should take a future growth are being prepared and presented to moment to reflect on this anniversary. We often the team. Schless: “This was an intensive process find ourselves caught up in daily ambitions and for everyone because many changes occurred. You goals, but it’s important to pause and recognize have to guide people in your vision and share the significant moments, such as our initial acquisitions, spot on your horizon and the steps needed to get the migration and integration of the new organization, there. That provided a framework for myself and and our early steps in Germany and Switzerland. the organization.”

During these reflective moments, we can ask ourselves: What are the highlights of the past five years, and what lessons have we learned from these Pim Kokke: “What was that spot on the horizon experiences?” five years ago?”

Pim Kokke: “Can you take us through the beginning Alexandra Schless: “I strongly believed there were of the merger between The Datacenter Group and interesting market opportunities for regional data NLDC?” centers. Our spot on the horizon was and is to become the leading platform of regional datacenters Alexandra Schless: “Yes. DWS, our largest investor, in the Benelux and DACH region. We started in the was in the process of acquiring The Datacenter Netherlands and have since expanded through Group and NLDC. During this process, they various acquisitions across multiple regions. Building approached me and presented their plans. It was a solid foundation for the organization to grow is very their first investment in data centers, and I saw the important in my opinion. So in 2020, we focused potential in the plans, because I believed in the on building this foundation and in 2021, we did our potential of the market segment and growth of first takeover in Germany, followed by a second regional data centers.” and third takeover in 2022 and 2023 in Switzerland.

During the past five years we have accomplished On October 1, 2019, the integration of both companies a lot as an organization and we’ve built a company into one organization started. In February 2020, we with 16 data centers in 11 regions. And we are still officially launched the name NorthC Datacenters. expanding our platform.”

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Pim Kokke: “What were the highlights of the past five with the local teams in the countries, yet at the same time we maintain the spirit of belonging to one entire years?” group. We value the cultural differences; we share ideas Alexandra Schless: “The highlights certainly include between the countries and teams and at the same time our acquisitions and their integration into NorthC we implement consistency in our way of working. The Datacenters. Acquiring a company is one thing, but combination of all these elements and values has led ensuring successful integration into the existing to the position where we are now. organization is essential.”

Pim Kokke: “Consistency, in a way, can still be called Pim Kokke: “But what is the largest challenge in ‘special’ when you look at the rapid changes in our successfully integrating these companies?” industry.”

Alexandra Schless: “It may seem straightforward to outline your goals on paper, including workstreams, milestones, and cross-functional processes. However, it’s essential to recognize that you are dealing with individuals who need clear guidance and explanations about the direction you want to take as a unified business. Consider what this acquisition means to them personally or for their teams. Because most of the time they need to adapt to a new DNA for the organization. So it is important to understand the impact and take on the responsibility as a management team to communicate openly and transparently what you want to accomplish and how the company’s core values support the execution plans.”

Alexandra Schless: “Yes and no. The markets we serve have changed a lot. But if I look purely at what customers expect from data centers, it’s the same as in the early 2000s: we must ensure a 99,999% uptime of our customer’s IT equipment, 24/7. That’s a basic fact. While the technology our customers use and our own infrastructure have evolved dramatically, the expectations remain consistent. Additionally, the requirements set by provinces and municipalities to build and operate datacenters are changing as well as a result of social and environmental factors. But our core business is still to ensure that all IT equipment in our data centers is up and running 365 days a year.”

Pim Kokke: “The industry is growing so incredibly fast Pim Kokke: “And what are the important learnings of that I sometimes ask myself if this growth will ever end.” these moments?”

Alexandra Schless: “For the foreseeable future, I believe Alexandra Schless: “Interacting with cultural differences that growth will continue without interruption. We can be challenging. For example, Dutch people are are in a relatively early stage of integrating AI into our known for their directness and honesty; they typically business operations and there is already a growing express their thoughts openly. This straightforwardness demand for data center capacity. At the same time, is effective in the Netherlands, as it allows everyone the data center Industry is heavily investing in energy to understand where they stand. However, in other efficiency solutions to cope with the increasing power countries, communication styles can differ significantly. usage. In some major cities like Amsterdam or Frankfurt It’s easy to forget these nuances in the midst of a busy we see grid constraints which leads to datacenter daily schedule, but being aware of cultural differences operators relocating to the regions around the cities. is crucial for ensuring successful collaboration and If companies fully embrace using AI applications as integration.” part of their business processes, we can expect an accelerated growth of datacenter demand.”

Pim Kokke: “It is quite an accomplishment to be a regional data center player with a bold global vision. Pim Kokke: Finally, we look ahead to the future.

Is that what the NorthC DNA is?”

Where will NorthC Datacenters be in 5 years when it celebrates its 10th anniversary?

Alexandra Schless: “Yes, I think so. The NorthC DNA consists of 4 values: open, local, flexible and Alexandra Schless: “Our ambition in five years is to entrepreneurial. The combination of these four values is add several new regions to our platform, and expand the foundation for how we work as an organization and in the existing regions where possible. We have further business. Being close to our customers and partners implemented our sustainability strategy. We have an and understanding their challenges, having an open ambition to be carbon neutral by 2030 with several communication both internally and externally, being projects already underway and implemented. Finally, able to adapt when necessary and running our business I hope, that as the organization has grown over the as if it were our own. The way we are organized as a years, our customers and colleagues still recognize company supports our DNA. There is a lot of autonomy the NorthC DNA.”

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STIJN DUTCH DATA CENTER ASSOCIATION

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DATA CENTERS AT THE CROSSROADS: POWERING EUROPE’S FUTURE IN GEOPOLITICS, AI, AND ENERGY In order to keep Europe’s strategic position in the global data economy, Stijn Grove, managing director of the Dutch Data Center Association, emphasises the use of an united approach for the data center industry in Europe.

Europe must treat data centers not only as commercial assets but as strategic infrastructure essential for sovereignty and security. Unified frameworks and investment in local capabilities are urgently needed to safeguard and strengthen this industry. With a united approach, we can overcome these challenges and ensure the industry’s resilience. Disjointed efforts will only lead to further vulnerabilities.

The data center industry in Europe is navigating a perfect storm of challenges and opportunities. As critical infrastructure underpinning AI, communications and cloud services, data centers are indispensable to Europe’s economy and security. Yet, the continent is losing ground to the U.S. and China in terms of digital innovation, investment, and influence. Widespread net congestion limits growth, public perception of the industry remains disproportionately low, and policymakers lack the nuanced understanding needed to support this vital industry, which must expand now more than ever to meet the demands of a rapidly digitizing world.

Addressing these interconnected issues with urgency and wisdom is not just necessary—it is imperative to Europe’s future.

AI and Data Centers Furthermore, the explosive growth of AI presents a double-edged sword for data centers. On one hand, AI’s rapid advancement is driving demand for computational power, cementing data centers as indispensable enablers of innovation. On the other hand, rising energy needs and infrastructure requirements strain existing capacities.

AI workloads differ fundamentally from traditional data processing tasks. Training large AI models requires immense computational resources, while real-time applications demand ultra-low latency and reliability. These requirements are reshaping data center design and operations, creating both challenges and opportunities for innovation. Europe’s efforts to develop green supercomputers and regional AI hubs are steps in the right direction, but they remain insufficient compared to the aggressive investments made by the U.S. and China. Without a clear strategy, Europe risks falling further behind in the race to harness AI’s transformative potential.

Data centers are far more than silent facilities processing data.

They are the backbone of the digital economy and enablers of emerging technologies that are reshaping the world. This perfect storm, created by geopolitical shifts, technological advancements, and the imperative of energy transition, requires immediate action to ensure Europe’s relevance in the global digital economy. As an industry, we must act united to navigate this storm and secure a brighter future.

Geopolitics and Sovereignty Europe’s strategic position in the global data economy is at risk. While the U.S. and China surge ahead with expansive digital infrastructure, Europe struggles to assert its sovereignty. Initiatives to create European global cloud competitors remain incomplete without broader support and implementation. The digital economy’s reliance on global supply chains after COVID pandemic has revealed critical vulnerabilities. Semiconductor shortages and geopolitical disputes over technology access have left Europe exposed.

These challenges underscore the urgent need for a cohesive European approach that prioritizes digital independence.

Data centers play a pivotal role in this vision, offering the infrastructure needed to secure Europe’s digital future.

To remain competitive, Europe must align industry innovation with supportive policies that balance AI growth with sustainability. The development of energy-efficient hardware, advanced cooling solutions, and renewable energy integration must become priorities. This will require collaboration across the industry. By acting collectively, the data center industry can position itself as a critical enabler of AI innovation while addressing public concerns about energy use. Together, we can achieve sustainable growth and maintain Europe’s competitiveness in this critical area.

Turning the Energy Transition Challenges towards Opportunities The energy transition represents both a challenge and an opportunity for the data center industry. While critics highlight high energy consumption, data centers are in fact catalysts for sustainable energy practices. Concentrating digital workloads in modern facilities has proven far more efficient than relying on legacy infrastructure. Yet misconceptions persist, fueled by outdated narratives.

At the same time, Europe must balance its ambitions for independence with its reliance on global partnerships.

The failure to act decisively risks leaving Europe as a mere consumer of digital innovations developed elsewhere, undermining both its economic security and technological sovereignty.

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Europe’s energy grids are under increasing pressure, and net congestion is becoming a critical barrier to growth. Data centers, with their high energy demands, are often seen as part of the problem. However, this perspective fails to recognize the innovative solutions that the industry is already implementing.

Concrete solutions are already underway, with investments in renewable energy, energy-efficient technologies, and projects repurposing data center waste heat for district heating, as seen in the Netherlands.

Data centers can also support grid expansion, stabilize grids, and integrate renewable energy sources. Better integration into Europe’s energy planning could position the industry as a leader in the energy transition, addressing net congestion faster.

Innovations like hydrogen generators and advanced energy storage further reduce environmental impact. By uniting, the industry can drive sustainable energy solutions and lead the transition to a greener future.

Achieving breakthroughs through action Europe’s fragmented approach to data center policy is a critical weakness. While some nations recognize the importance of digital infrastructure, many policymakers fail to connect ambitious digital goals with the need for robust, scalable data centers. The result is inconsistent regulations, missed opportunities for growth, and an underestimation of the industry’s strategic value.

The perception of data centers as mere energy consumers overlooks their broader societal contributions. They enable digital inclusion, support innovation, and drive economic growth.

The success of ASML, Netherlands largest company and Europe’s largest tech company, can almost be attributed to the rise in data center demand. However, these benefits are not widely understood, particularly among policymakers. Bridging this knowledge gap is essential for fostering a regulatory environment that supports sustainable development. Collaboration between governments and the data center industry is vital to achieve sustainable development and broader goals like energy resilience, digital inclusion, and economic stability. By uniting to advocate for clear, harmonized policies, the industry can secure its future and remain a cornerstone of Europe’s digital and sustainable progress.

A perfect storm Our data center industry stands at the confluence of Europe’s most pressing challenges: geopolitical resilience, AI development, and the energy transition. But this is no ordinary crossroads; it is a perfect storm requiring immediate and coordinated action. Without bold leadership, strategic vision, and most importantly concrete actions, Europe risks falling further behind global competitors. Now is the moment to rethink perceptions and policies and switch to breakthrough mode.

Data centers must be seen not as energy drains but as enablers of a secure, sustainable, and digitally empowered Europe. By integrating the industry into broader strategic frameworks, Europe’s leaders can turn challenges into opportunities, ensuring that the continent not only competes but leads in the (future) digital age.

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JUAN NIBC BANK

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IS SOUTHERN EUROPE SET TO BECOME A GLOBAL LEADER IN THE DATA CENTER MARKET? NIBC Bank sees signs that Southern Europe is primed for the next wave of Data Center development, here we discuss some of the challenges, where the investments are and who is already leaving their mark.

Microsoft’s three data centers, declared Projects of General Interest of Aragon, will see a €6.6 billion investment over the next decade. QTS’s massive 300 MW IT project in Calatorao further cements Aragon’s status as a key player.

The Iberian Data Center Market: A Surge in Capacity and Investment The Iberian region’s data center industry is experiencing a significant transformation; 2024 has seen considerable investment and expansion with the transition to the gigawatt-era clearly evident with new projects poised to add 249 MW by 2026. As with core DC markets across Europe, this shift is driven by AI and new power frameworks, positioning the Iberian market as a global reference for AI-native developments.

Lisbon: Strategic Growth Lisbon is home to over half of Portugal’s data centers, with significant interest from hyperscalers. Power supply has remained stable and benefits from 60% renewable sources (vs EU average of 27%) with the local pipeline having increased from 100 to 130 MW IT. Notable projects include Equinix’s second facility, Voltekko’s 6 MW IT development, and AtlasEdge’s 20 MW IT expansion. Start Campus’s announcement of a 1.2 GW (!) IT capacity increase highlights Lisbon’s strategic position within the submarine cable network.

Madrid: A Hub of Activity Despite delays in power supply deliveries, Madrid’s data center capacity has remained stable at 164 MW. However, the demand surge due to the AI revolution and excellent fiber infrastructure in the northeast area is set to push installed capacity to almost 800MW. Major players like Oracle, with a $1 billion investment plan, and Nabiax, with a recent expansion, are propelling this growth.

Italy: A Nuclear solution Alongside Iberia, Italy is becoming a prominent player in the market with €30bn of investments and government support to tackle energy costs promising a flurry of activity. At the heart of this movement is Milan, where according to the Italian Datacenter Association, €15bn of project are already in the pipeline and set for completion by 2028. Given power constraints in the geography, the Italian government is introducing legislation allowing for Small Reactors to be built paving the way for a Nuclear fueled solution. It would appear that the positive noise emanating from the region has substance; Microsoft announcing €4.3 billion investment commitment for the next two years, underscoring Italy’s growing appeal in the global data market.

Nabiax’s two additional projects are set to host two hyperscalers, adding to the city’s robust data center landscape. Additionally, international operators such as Pure and Prime are making significant strides. Pure plans a 30 MW facility in Meco, while Prime is developing a 40 MW data center in Alcobendas.

Barcelona: Rising Star Barcelona’s installed capacity is small, but growth is not; capacity grew from 25 to 42 MW IT, thanks to Merlin Properties’ 13 MW IT addition and Equinix’s new 4 MW IT facility. AtlasEdge’s acquisition for a second data center, CoreWeave’s $2 billion European expansion plan, and several other projects underscore Barcelona’s burgeoning potential.

The city’s strategic position in the submarine cable network is attracting major operators, with expectations to multiply its power supply fourfold in the coming years.

It is clear, that the Southern European data center market, driven by technological advancements and strategic investments, is poised for a transformative decade; As AI and renewable energy integration become more prominent, the region is set to become a global leader in data center development and operations.

Biography Juan began his career in finance at Deloitte in 2013, from there he transitioned in to banking in 2018 where he joined Barclays, enjoying a 6 year spell in debt structuring; with the later years spent working across the Corporate Investment Bank servicing Large Cap clients. Juan joined NIBC in March 2024, with a mandate to grow NIBCs Infrastructure origination throughout Southern Europe. He also leads the execution team in the UK. Outside of work, Juan is a passionate football aficionado, supporting Manchester United and Atletico Madrid!

Aragon: The ‘Virginia of Europe’ Aragon is emerging as a prime data center region, likened to Virginia in the U.S. Hyperscalers like AWS and Microsoft are heavily investing in the area, attracted by large land plots, renewable energy production, and favorable local administration policies. AWS’s first three data centers have commenced operations, with plans for additional facilities.

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PORTUGAL AS THE NEXT LEADING DATA CENTER HUB PORTUGAL DATA CENTRE ASSOCIATION

Portugal’s data center sector is currently in a period of significant growth, resembling a flourishing relationship at its peak, where everything aligns perfectly. Positioned on the southwestern edge of Europe, Portugal has become a strategic gateway between Europe, Africa, and the Americas, with a highly developed network infrastructure.

This geographical advantage, combined with the country’s robust renewable energy capacity, has helped establish Portugal as a prime location for data centers in Southern Europe. In recent years, Portugal has attracted major international investments in data centers, with projections estimating that the sector will receive significant direct and indirect investments in the near future.

The country is set to reach new milestones in power capacity, rapidly closing the gap with more mature European markets. Portugal is transforming from a distant player to a key participant in the European data center ecosystem, and it may soon be seen as an essential part of the emerging digital hubs across the continent.

The growth of digitalization across various sectors — such as healthcare, education, and mobility — is a driving force behind this expansion, accelerated by the post-pandemic world and the increasing demand for data. Data centers are at the heart of this digital transformation, supporting the shift toward decarbonization and sustainable development. Portugal’s data centers have the advantage of starting relatively recently, giving them the opportunity to incorporate sustainability from the ground up.

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With Portugal’s leadership in renewable energy, the country’s data centers are naturally positioned to adopt climate-neutral strategies and contribute to the broader environmental goals of the European Union. Ensuring that data centers become integrated into their communities as part of the environmental solution is essential.

Another challenge is the talent gap. The increasing demand for data center professionals, skilled in advanced technologies, is outpacing the available workforce. There is a growing need for highly qualified workers to meet the sector’s demands, and despite efforts from both the private and public sectors, in Portugal both sectors joined forces to avoid the talent shortage we are seeing everywhere.

Finally, regulatory frameworks must keep pace with the growth of the sector. Effective collaboration between local, regional, and national authorities is crucial to support the development of data centers in a way that contributes to the digital and green transitions. Regions that are home to data centers generally experience stronger job creation and economic growth, so it is vital for Portugal to promote the sector’s importance to national development.

Other highly important characteristics that Portugal possesses are undoubtedly its reputation of safety, being frequently recognized as one of the safest countries in the world, and the low risk of extreme weather events. All these attributes undoubtedly place Portugal on the list of safe investment destinations for the development of data centers.

In conclusion, Portugal is in a prime position to capitalize on the growth of the data center industry. By addressing the challenges of sustainability, talent, and regulation, Portugal can secure its place as a leading hub for digital and green technology in Europe.

This article was wrritten by: Luís Duarte - President PortugalDC Carlos Paulino - VP PortugalDC Rita Lourenço - VP PortugalDC

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ENERGY MARKET UPDATE

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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

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And suddenly November was cold, with less wind against expectations, this periods developments has made clear that the dependence of the energy systems on renewables has a weaknesses. The Dunkelflaute is a German term that roughly translates to a “dark wind depression”. It describes a situation where there’s minimal sunshine and wind for extended periods - meteorologists also refer to this as anticyclonic gloom, mainly it describes the situations that we just experienced and felt in the system. With less wind-production and the lack of sun hours we once again relied on gas power generation to cover the demand. With the growth of gas demand for generation and the lower temperatures there was a two way pull on the gas demand from heat and generation. Combined with lower storage levels in The Netherlands the influence of this has been felt all around the market. As we compete with Asia for our LNG on the global market, the European prices jumped to secure delivery of LNG for our needs.

range of estimates on the impact of tariffs and the growth outlook. This highlights both the fluidity and the uncertainty of the situation especially around the magnitude, timing and format of the Chinees demand for energy. Despite the many unknowns, a certainty is that a trade war with the U.S. would have a considerably negative impact on China’s economy.

But who knows, perhaps the re-election of Donald Trump as president of the US will be the decisive wake-up call for Europe to improve the overall conditions for businesses, promote research and development and ensure competitive energy prices. For the Netherlands we are seeing more problems ahead because of the low gas storages (end of November at 72,6% for NL, and 85,7% EU) this combined with falling renewable production the spot market will most likely be with high peaks and limited lows.

Key Points: Increased gas Demand: For generation of power to cover demand during Dunkelflaute. This marks power spot prices as demand is strong and renewable generation is low.

Investment Requirements: Investments in the energy sector need to significantly increase to support the transition towards more sustainable energy systems. The largest share of current fossil fuel investments is directed towards upstream oil and gas, with significant expenditures also foreseen for low-emission energy sources and technologies, although these remain less than 5% of total upstream investments.

Include significant impacts on energy markets due to the U.S. granting Ukraine permission to use long-range missiles and the looming end of the Russian gas transit agreement through Ukraine. These events have stacked the reactions in the energy markets in Europe.

The current gross domestic product (GDP) growth in 2024 is at 0.9% in the EU and 0.8% in the euro area. For the EU this is lower with respect to earlier numbers, while it is unchanged for the euro area. GDP growth in the EU is expected to pick up to 1.5% in 2025, as consumption is shifting up a gear and investment is set to rebound, and looks not to be stopping beyond 2025. Growth in the euro area is set to follow similar dynamics, the disinflationary process that started towards end-2022 continued over the summer. Notwithstanding a slight pick-up in October, largely driven by energy prices.

Impact on Power Prices: The shift towards clean energy, while necessary for sustainability, brings about volatility in power prices. This is influenced by the intermittent nature of renewable sources and the ongoing need for investment in grid stability and energy storage solutions to manage supply-demand imbalances. The reduction in legacy power plants, combined with the challenges in rapidly scaling up renewable energy sources like wind and solar, is likely to tighten the supply-demand balance, thus supporting higher power prices in the short term, especially in EU markets.

Two concurrent developments are impacting China in opposite ways. A policy shift is underway in Beijing that is driving fiscal support to the economy in an effort to stem the downturn and prevent deflation. From the other direction, a newly elected President Trump has vowed to dramatically increase tariffs on China and engage in a new trade war. It is uncertain how this intersection could impact China’s outlook for 2025. As Trump builds out his cabinet and coterie of advisers, investors are turning their attention to the prospect of tariffs and a “Trade War 2.0”. There are currently a wide

Benefits to Green Energy Majors: Companies in the clean energy sector are seeing limited growth due to supportive policies and investments, particularly in advanced economies and China. This growth is driven by the lower costs of renewable energy technologies and increasing investments in solar and wind power deployment.

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Electrification Strategy and Its Implications: Sector-specific Shifts: The energy sector is witnessing a significant pivot towards renewables, with solar and wind leading the growth. This shift is part of broader efforts to reduce dependency on fossil fuels and mitigate environmental impacts.

This electrification effort is not just about energy transition but is also a critical component of Europe’s broader environmental and economic policies aimed at sustainability and reducing dependency on fossil fuels.

Power market: For 2024 the generation of renewables have been the main driver for low power spot prices in The Netherlands and other continental countries. Mainly because of the over capacity of renewables at peak solar hours, in combination with some slight wind generation. In November the lack of wind and solar made the weakness of renewable production quit clear as the market suddenly had to deal with the “Dunkelflaute”, a period with very little sun and wind during short days. To cover power demand the capacity of old or unprofitable power generation installations had to be used, this causing the highest spot power prices we have seen in the last 18 months. Reaching a peak price over 800 euro/MWh.

Renewable Energy Expansion: Renewable energy sources are set to become the largest contributors to the global electricity mix by the mid-2020s, surpassing coal and other fossil fuels. This expansion is supported by technological advancements and decreasing costs for solar and wind installations​.

Financial and Policy Support: Policy frameworks and financial incentives are crucial in supporting the clean energy transition. Recent policies in the U.S. have spurred significant private and public sector investments in clean energy, reflecting a global trend towards enhancing financial support for sustainable energy solutions​.

Challenges and Considerations: Regulatory and Financial Risks: Investors in renewable energy face challenges such as high initial costs, regulatory uncertainties, and fluctuating policy environments, which can affect the pace and scale of clean energy deployments​ Technological and Operational Hurdles: While renewable energy technologies are advancing, they still encounter issues like supply chain bottlenecks, cost inflation, and technical limitations in energy storage and grid integration, which can hinder their full potential and integration into the energy system​.

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THE ENERGY SECTOR IS WITNESSING A SIGNIFICANT PIVOT TOWARDS RENEWABLES

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The amount of negative hours in 2024 once again showed a good increase toward the 450 mid-December. With the holidays still to come we might end up at a 500 mark, this against the end total of 316 in 2023. That said we need to mention that the average negative price in 2024 is lower than the 2023 price. The end results will be given in next update.

In 2025 the LNG flows to Europe will remain uncertain as the long term contracts that have been closed will only come in play from January 2026. This keeping Europe in the global market for LNG with all the uncertainties there about the demand from Asia. Be aware that unexpected cold periods in Asia will disrupt any flow of LNG towards Europe and driving TTF gas prices and (in correlation) power prices in a bullish market to unknown highs.

The topic for the demand of power and the availability of enough capacity will remain a topic for 2025 and could impact the price development as everybody is looking for possibilities to grow their company with the grid constrains as they are. Resulting on more players on the spot market creating more activity and stronger price reactions.

As Europe will have a high demand for LNG to fill the gas storages for winter 25/26 as they arte already being used due to the colder period in November.

EUA EUR/MWh

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Gas market: The new year’s rally has been wild, as early cold periods disrupted the steady buffering of gas in the storages and a demand for gas for heating hit early this year.

Resulting in higher gas spot prices in the fourth quarter.

With good storage levels already in the beginning of September the result can be that in a slightly warmer Q1/26 period the prices can still be bearish because of lower heating demand. The overall reduction of the use of gas could potentially have a strong effect on the further development of gas prices all around.

Europe’s anticipation of the lack of Russian gas has seen its problematic periods and traders no longer see this a problem for long term hedging. With the markets in backwardation many off takers are given the possibility to hedge against longer term average prices and secure beneficial budget setting for Europe.

The competition with the US remains as gas price in the US are still at a third of the European prices, on a global level this provides production in the US with a strong competitive position with a new national political government. The effect for the export of Europe remains uncertain and we will see if growth can be achieved with this challenging position we have, in combination with the EU greenhouse gas emissions reductions at a moment where investments and new processes could disrupt operations.

GAS IN STORAGE

EU

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Germany

Hungary Ukraine Germany

Latvia Ukraine RomaniaHungary

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France Spain

Austria Slovakia

Belgium Czech Republic

Denmark Poland

Bulgaria Slovakia

Belgium

Denmark

United Kingdom Spain (Post-Brexit)

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POWER FUTURES

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Carbon - EUA As usual Carbon has been following the gas prices and opportunities have been taken early 2024 with lows at 52 euro/ tons. After the strong drop of EUA’s in March of 2024 the price have been bullish all summer long, strongly correlated with gas price and uncertainty about next tranches and new legislation.

Issues like ETS 2 and gas reduction programs in many European countries show that the industry has taken measures to reduce carbon emissions.

At this time we still see a lot of movement caused by speculative trading from investors. With the years end a strong drop could be expected as traders and investors that their profit to play the game once again next year!

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Outlook With winter coming (or not) the market is once again looking for the direction to move forward. With colder temperatures against historic values in November, the gas storages where used to cover the demand of gas for heating as spot gas prices were higher due to geopolitical restrains. With still to many external issues contaminating the power and gas prices the forward market would possibly have been overpriced, this would result in lower spot prices in 2025 and good hedging opportunities for 2026. If you are aiming for budget security it will once again be sensible to mitigate your risk by hedging in tranches that covers 10 to 20 percent of your expected volume each tranche. Taking partial spot positions for both power and gas are there to not over hedge and mitigate your suppliers risk and cost. Taking the opportunity to hedge for a longer period of time towards 2029 seems to provide a well based fundamental opportunity, because the forward market is still in backwardation at this time, if you are allowed to do so.

Conclusions Once again we have been in an energy commodity market with many unforeseen events that have influenced the prices, like no winter in Europe, escalation in Isreal, the continuation of the war in Ukraine and many problems with the gas flows from Norway to continental Europe. With the economic uncertainty of growth in Europe and Asia, the political decisions in the US and the decarbonisation of the industry in Europe the direction will remain searching for the new balance in prices. In this search the opportunities and overreactions will stay as common as they have been before only with more risk. Once again the insights in market development and the root cause of the price movement will be key to follow, so be sure to stay connected and in control. To get this market information on a daily schedule get your subscription on E-nalytics and never loose insights.

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TAKING THE OPPORTUNITY TO HEDGE FOR A LONGER PERIOD OF TIME TOWARDS 2029 SEEMS TO PROVIDE A WELL BASED FUNDAMENTAL OPPORTUNITY

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EUROPEAN

OUTLOOK

KICKSTART EUROPE

IS SUPPORTED BY

REVOLUTIONIZING DATA CENTERS FOR A MORE SUSTAINABLE FUTURE The data center industry is undergoing a transformation driven by the impact of artificial intelligence (AI), which is increasing the demand for computing power. “AI itself can play a major role in the sector’s necessary move towards sustainability,” says Schneider Electric.

“Our overarching strategy in the rapidly evolving world of data centers is to harness the immense impact of AI,” says Thierry Chamayou, VP Cloud & Service Providers EMEA at Schneider Electric. “The rise of AI has two sides,” Chamayou explains. “Its widespread use demands massive computing power, but the technology is also playing an increasingly critical role in improving the operational efficiency of data centers.” The challenge lies in expanding data center capacity while meeting the sustainability goals rightly expected by society. “And it’s not just about sustainability,” Chamayou adds. “We must also ensure continued access to energy for these data centers, which are fundamentally dependent on it.”

Thierry Chamayou SCHNEIDER ELECTRIC

AI and cloud computing require significant amounts of energy which can increase pressure on existing infrastructure. Developing technologies to responsibly support this demand is essential.

“Sustainability, in the broadest sense of the word, is crucial,” Chamayou emphasizes. “Sustainability encompasses not only energy consumption but also the development of technologies that enhance efficiency while reducing the ecological footprint of data centers.”

EXPERT INTERVIEW

ADVANCED ENERGY STORAGE Innovations such as the collaboration between Schneider Electric and companies like chip manufacturer Nvidia play a key role in developing data center infrastructure. Nvidia provides powerful AI processors used in data centers to accelerate AI applications. Schneider Electric, in turn, leads the way by offering advanced technologies that enhance operational efficiency. “We’ve developed reference designs to help the market adopt state-ofthe-art technologies, which are particularly vital for AI and HPC applications”, says Chamayou. “These designs offer a robust framework for implementing NVIDIA’s accelerated computing platforms within data centers. Adding “They are further bolstered by a focus on integrated solutions, such as efficient liquid-cooling systems which can be scaled up and down depending on how many servers are being installed and how much power they consume”.

One example of this progress is the Galaxy VXL UPS, which Chamayou proudly shares. “This is a cuttingedge, efficient, and modular UPS designed to handle AI, dynamic workloads, and future power demands with unmatched reliability, energy efficiency, and adaptability for modern data centers.”

THE GROWING IMPORTANCE OF RETROFIT In addition to building new data centers, retrofitting— reusing and upgrading existing buildings and infrastructure—has become increasingly important.

“Retrofit is crucial because, in the race against time, the one thing we all share is that we never truly beat time,” Chamayou philosophically notes. In Europe, where data center vacancy rates are historically low, finding new land for data centers is becoming increasingly difficult. This makes retrofitting a faster and, above all, more sustainable solution for increasing the capacity of existing data centers.

“Moreover, existing data centers already have a power connection, which is often a challenge for new construction.”

By retrofitting existing data centers, companies can quickly respond to the growing demand for AI capacity. This can range from integrating AI clusters into existing data centers to completely transforming outdated facilities into AI-ready centers. “At Schneider Electric, we help customers retrofit their installed data centers and create AI clusters,” Chamayou explains.

ENERGY AS A KEY FACTOR As Chamayou pointed out, a critical factor influencing the growth of data centers is access to energy. “The Nordics are a well-known region where an abundance of energy is available,” says the Vice President. The cold climate and plentiful renewable energy make the region increasingly attractive for data centers.

In other regions, Schneider Electric’s equipment helps balance energy demands on the grid. “Every location has its own opportunities and challenges,” Chamayou summarizes.

SUSTAINABILITY AS A DRIVING FORCE The future of data centers will undeniably be shaped by the rise of AI and the urgent need for sustainability.

“These are not mutually exclusive; on the contrary, they complement each other.” Innovations such as AI integration, energy-efficient cooling, and retrofitting existing infrastructure are essential for supporting the growth of data centers while minimizing their environmental impact. “As companies push the boundaries of technological progress, the pursuit of sustainability remains our driving force behind the transformation of the data center industry.”

LIQUID COOLING ENABLES HIGHER POWER IN A SUSTAINABLE WAY The data center industry is changing rapidly, driven by technological advances and the growing demand for computing power. For German manufacturer Stulz, specialized in cooling solutions, several challenges come together. “We enable liquid cooling in existing data centers.”

During an event that Stulz Groep B.V. recently organized with Interconnect, owner of data centers in the Netherlands, the German manufacturer identified five trends in the data center sector. “First of all, we have to deal with the fact that the global data center market is growing by around 20% per year, with hyperscale data centers experiencing the largest growth,” says Carlo Brouwer, Managing Director at Stulz Groep B.V.. “In contrast to hyperscale data centers, the enterprise sector is growing somewhat less quickly, partly due to their more wait-and-see attitude towards artificial intelligence.”

The event that Stulz Groep B.V. and Interconnect organized together was dedicated to the topic of Liquid Cooling. Brouwer: “Liquid cooling, and in particular direct chip cooling, is rapidly gaining ground. We expect this technology to capture 80% of the market, while immersion cooling will soon account for 20%.” According to the Managing Director, this shift to liquid cooling is necessary due to the higher capacities of modern computer systems, especially for the rapid rise of artificial intelligence (AI).

SUSTAINABILITY REQUIREMENTS Brouwer sees a completely different trend in the fact that data centers are now being designed to function at higher temperatures, with environments that can now handle temperatures of up to 48°C, compared

to the old standard of 32°C. “This is partly related to a fourth trend that I see: the increasing importance of sustainability goals,” Brouwer indicates. “Regulations that prescribe energy efficiency and heat reuse are becoming increasingly stringent.”

In all of this, there are challenges that are beyond the direct influence of data center operators, namely the (limited) availability of cooling water and energy. Brouwer: “The combination of all these trends ensures that work in this sector has changed dramatically in a short period of time.”

THE CHALLENGES OF IMPLEMENTATION Overlooking the whole range of trends, Brouwer delves deeper into the rise of liquid cooling, a topic that is very much on the agenda among Stulz customers. “With the arrival of modern and powerful processors that require liquid cooling, the data center industry is changing,” is his analysis. “After all, chip manufacturers are bringing processors onto the market that require this type of cooling.” This has an impact on the power per rack, which (must) increase significantly. “This is particularly relevant for enabling AI and other applications that require enormous amounts of computing power.”

Although the technology that makes liquid cooling possible is certainly promising, its implementation is a challenge for many existing data centers. “With new construction, you can immediately make a data center suitable for the requirements of liquid cooling.

Existing data centers must meet the demand for higher capacities per rack without being able to completely renew the infrastructure. And that while the daily business continues as usual.”

EXPERT INTERVIEW

MODULAR SOLUTION In this context, Brouwer points to the ‘on the skid’ system that Stulz supplies, a modular solution that can easily be installed in existing data centers.

“These units are already equipped with liquid cooling. The necessary infrastructure is already in place, which simplifies the retrofit process,” explains the Managing Director. According to Brouwer, the integration of liquid cooling offers significant advantages. “It offers the possibility to deal with the power demand of the market,” says Brouwer. As a result, companies can respond to the demand for higher capacities without renewing their entire infrastructure.

NEW TECHNOLOGIES 2025 will be a year of transition, according to Brouwer, in which the data center industry will try to implement new technologies. “It will be a year in which the data center world asks itself how to integrate these technologies in a relatively short time,” says the Managing Director. “The speed at which new technologies are embraced will be crucial for the future of data centers.” Neither Stulz nor Brouwer is afraid of that. “The great thing about this sector is that the data center world is always in motion and presents us with interesting challenges. As a technician, I like that.”

CARLO BROUWER STULZ GROEP B.V.

DATA CENTERS AS KEY PLAYERS IN THE ENERGY TRANSITION The energy transition is in full swing, and one of the most surprising players in this process is the data center industry. Once notorious for their enormous energy consumption, data centers are now increasingly playing a pivotal role in stabilizing the energy grid. We spoke with Freek van Alphen, Head of Datacenter Solutions Benelux & Datacenter Services Europe at ABB, Richard Pimper, Vice President and Chief Technology Officer of Digital Power at Huawei, and Fang Wang, Sales Manager at CSB Energy Technology, about this development.

“Data centers are becoming an integral part of the solution to the energy transition,” says Van Alphen of ABB. “Not only can they consume energy, but they can now actively contribute to grid balancing.” This shift in the role of data centers is remarkable.

TRIPLE BUSINESS CASE Van Alphen explains: “In the past, data centers were designed to meet the maximum power demand of their customers. It was purely a commercial real estate model, with an emphasis on the amount of energy available via the grid connection.” However, the increasing demand for digitalization and growing pressure on the power grid call for a new approach.

According to Van Alphen, this shift in the role of data centers is not only technologically innovative but also a commercially savvy move—and it helps achieve climate goals. The development of this new role results in what Van Alphen describes as a “triple business case”.

Firstly, of course, hosting and digitalization. After all, that is the primary purpose of data centers.

In addition, energy management becomes important. Data centers can now store energy

when there is a surplus of energy and return it to the grid when there are shortages. This will bring economic benefits to data centers. And finally, data centers play a role in heat supply. The residual heat from servers can be usefully used for district heating or industrial processes. “Data centers will become active energy managers,” predicts Van Alphen and ABB is well positioned to guide the key players with leading technology and innovative business models.

DATA CENTERS AS KEY PLAYERS IN SUSTAINABLE ENERGY Pimper of Huawei also sees the potential of data centers as key components in the future of sustainable energy. “We can play a role in transforming the business model of data centers,” he says. He believes Huawei’s expertise in artificial intelligence (AI), the Internet of Things (IoT), and energy storage technologies is essential for improving data center efficiency and their integration into smart grids.

“Innovative technologies can enhance the energy efficiency of data centers through intelligent energy management systems optimized by AI,” Pimper explains. By integrating renewable energy sources such as solar and wind power, along with advanced battery energy storage systems, data centers can position themselves as active participants in energy markets.

Huawei’s digital and power electronics technologies enable data centers to become energy-efficient.

“By utilizing battery technologies, data centers can store energy during periods of low demand and return it to the grid when additional capacity is needed,” says Pimper, emphasizing their role as gridstabilizing players.

EXPERT INTERVIEW

THE FUTURE OF BATTERIES Wang, of battery manufacturer CSB, highlights the importance of sustainable technologies and battery storage in this context. “The role of batteries is becoming increasingly critical.

They can serve not only as emergency power but also for demand response and frequency regulation,” Wang explains.

She stresses the need to understand the distinction between power and energy. “Power refers to how quickly you can generate kilowatts, while energy relates to how long you can use those kilowatts.”

FREEK VAN ALPHEN - ABB

“The ideal scenario,” Wang adds, “is spreading energy usage by utilizing power at different times, which benefits both the grid and the consumer.”

She also underscores the importance of recycling: “Some batteries are up to 99.9% recyclable, making them not only much more sustainable but also a contributor to the circular economy.”

TOWARDS A NET-ZERO ENERGY LANDSCAPE

RICHARD PIMPER - HUAWEI

Summing up, Pimper from Huawei emphasizes, “We must move towards an energy landscape entirely based on renewable energy and digital technologies.” Data centers play a crucial role in this vision, particularly when leveraging advanced technologies such as AI, battery storage, and renewable energy integration.

“This way, we can contribute to achieving netzero goals and a carbon-neutral future.”

FANG WANG - CSB ENERGY TECHNOLOGY

FROM BRICKS TO DIGITAL HUBS:

THE EVOLUTION OF DATA CENTER FINANCING Data center financing has undergone a transformation. Originally, data centers were seen as real estate projects. It is now clear that it is about more than ‘bricks’: data centers are the heart of the digital infrastructure.

Son Lam, Director of Digital Infrastructure Project Finance at NIBC Bank, succinctly describes the changing perspective on data centers. “A data center is much more than just a real estate asset. Financing is not just about how the building is constructed but also about the facilities the developer plans to offer and the underlying tenants they manage to contract.” According to Lam, NIBC Bank approaches activities in the data center sector from a project finance perspective. “You have to look beyond the asset itself. You need to examine the company behind it, the technical infrastructure being built, and the ability to attract major players as clients.”

The rise of hyperscalers has reshaped the data center sector, Lam notes. “These companies require enormous amounts of capacity, which involves significant investments.”

These large investments also bring challenges, according to Holger Holle, Partner International M&A at Eversheds Sutherland. He points to the exponential growth in capacity requirements. “Only the larger players in the sector can handle this

SON LAM - NIBC BANK

rapid growth,” he says. “In that sense, the sector is becoming increasingly professionalized. Equity players like Bain Capital and Blackstone have recently invested billions in data centers. This is leading to a wave of consolidation that is expected to continue.” favorable. It’s really important to get the message out that larger data centers are actually very energy efficient, more so than smaller facilities. Otherwise, Europe might lose its competitive edge.”

WEIGHING UP RISKS Investors are also increasingly assessing future risks, Lam and Holle explain. Data centers must comply with ever-stricter regulations concerning energy efficiency and water usage. “There comes a point when you have to adapt a data center that may not yet be endof-life to new requirements.” The adjustments can also pose a challenge. “Retrofitting data centers to make them up-to-date is a substantial investment,” says Natascha Geraedts, Senior Partner Datacenters and Renewable Energy at Eversheds Sutherland.

She highlights that financial professionals also monitor the competition for permits and resources.

“Data centers compete for permits due to capacity constraints, such as electricity shortages in certain regions. It is interesting to see how developers still manage to adapt.”

HOLGER HOLLE - EVERSHEDS SUTHERLAND

EXPERT INTERVIEW

These constraints are less of an issue in the Nordics compared to other parts of Europe, says Karin Angus, Senior Market Adviser at Enterprise Ireland.

This organization plays a crucial role in supporting Irish companies active in the data center sector.

These companies have built a strong reputation in recent years in constructing data centers, particularly in countries like Sweden, Finland, and Denmark. “The region is not only attractive for data center development,” Angus explains. “It also offers opportunities for collaboration and innovation. The Irish focus on sustainability and energy efficiency plays a key role in the successful expansion of data centers in this region and beyond.”

The Nordics, particularly Norway, Sweden, and Finland, are becoming increasingly important due to their availability of renewable energy and a cooler climate. This makes the region highly suitable for energy-intensive data centers. “There is tremendous growth in the Nordics. Not just because of energy prices but also due to improved digital connections and lower latency,” Angus of Enterprise Ireland points out. “The technical capabilities and stability of the region make it an attractive location for digital infrastructure.” She also notes another intriguing factor: “The image of data centers in the Nordics is generally not as negative as in other European countries. This strengthens their license to operate.”

BETTER IMAGE IN THE NORDICS The developments in Northern Europe are also of interest to Lam (NIBC Bank). “For a long time, attention was focused on the FLAPD area, the cluster of popular data center locations around the European cities of Frankfurt, London, Amsterdam, Paris, and Dublin.” These cities are attractive due to their proximity to internet exchanges and the availability of energy. However, with the sector’s growth around these cities, capacity issues are emerging. “At some point, traditional hotspots hit their limits, whether it’s space, electricity, or water,” Lam says. “That’s why we’re seeing more interest in ‘tier 2’ locations, such as Madrid, Milan, and the Nordics.”

NATASCHA GERAEDTS - EVERSHEDS SUTHERLAND

KARIN ANGUS - ENTERPRISE IRELAND

NET ZERO BY 2030: REALITY AND INNOVATION IN THE DATA CENTER INDUSTRY The climate crisis has driven ambitious goals to reduce greenhouse gas emissions, with net-zero emissions as a key milestone. For many industries, including data centers, the question is whether this can be achieved by 2030. Representatives from Eaton, AVK, Vertiv, and Delta Electronics share their perspectives.

For Ivan Bekavac, Presales Manager MDC Solution Team at Delta Electronics, the impact of industrial processes is also a key concern. “Concrete production accounts for nearly 8% of global emissions.

By implementing sustainable solutions such as prefabricated data centers, the sector can minimize material waste and contribute to a circular economy.”

Achieving net-zero means removing as many greenhouse gases from the atmosphere as are emitted. This includes direct (Scope 1), indirect (Scope 2), and supply chain-related emissions (Scope 3).

While ambitious goals like net-zero by 2030 create urgency, four experts from the data center industry highlight the massive growth in digital infrastructure, which has undoubtedly accelerated in recent years.

Since this growth is still accompanied by limited availability of carbon-free energy sources, achieving net-zero quickly presents a significant challenge.

Investments in energy-efficient designs and modular data centers that enable disassembly and recycling are playing an increasingly important role, according to the specialists. This approach reduces reliance on conventional building materials and promotes a lowcarbon economy.

SUSTAINABLE PRODUCTION Scope 3 emissions pose a significant challenge for the data center industry. “Supply chains, such as the manufacturing of computer chips, concrete, and steel, often rely on energy-intensive processes in countries with high CO2 intensity. Achieving Scope 3 reductions therefore requires a long-term vision,” says Ben Pritchard, CEO of AVK. “By proactively collaborating with suppliers and investing in clean technology, the data center sector can make substantial progress.”

ENERGY BUFFER Eaton points to another aspect of sustainability.

“It’s increasingly about the interplay of location, technology, and infrastructure,” explains Cyrille Brisson, Global segment leader, Data Center. “In some locations, net-zero is absolutely achievable, but it requires a different way of thinking and implementation.” He highlights the importance of microgrids and renewable fuels, such as Hydrotreated Vegetable Oil (HVO) and ammonia, but acknowledges that many advanced technologies, like fuel cells, are not yet widely available.

Vertiv sees the integration of flexible energy flows as a key part of the solution for achieving net-zero. “Our systems support renewables and can function as an energy buffer for the public grid. This makes it easier to adopt sustainable energy without disrupting data center operations,” says Ronald van Veen, Technical Solutions Architect for Data Centers.

EXPERT INTERVIEW

BEN PRITCHARD - AVK

Artificial Intelligence (AI) is widely recognized as a disruptive innovation that has dramatically increased the demand for computing power. However, it also offers opportunities to enhance sustainability.

Brisson (Eaton) sees potential in using AI to optimize data center locations closer to renewable energy sources. “This reduces dependence on carbonintensive energy and enables more sustainable operations,” he explains.

THE CHALLENGE OF EXISTING DATA CENTERS Another crucial aspect is retrofitting existing data centers. “The retrofit techniques from fifteen years ago are incomparable to what we know and can do today,” says Van Veen (Vertiv). He emphasizes the importance of not neglecting existing infrastructure and adapting older data centers to make them more efficient. “This process can often be completed more quickly than building new facilities.” AVK supports the need to modernize existing facilities. “However, it won’t be enough to meet the enormous demand for data center capacity,” Pritchard believes.

While net-zero by 2030 seems challenging for many sectors, it remains a vital goal to accelerate sustainability. “Failing to meet the 2030 target jeopardizes the feasibility of even stricter goals for 2050,” notes Bekavac (Delta Electronics). Achieving net-zero requires vision and persistence. As Eaton states, “Every effort must focus on deploying available technologies while continuing to invest in future innovations.” Net-zero must also be considered in the context of other goals, Pritchard (AVK) suggests.

“These include water availability, land use, and digital sovereignty.”

IVAN BEKAVAC - DELTA ELECTRONICS

CYRILLE BRISSON - EATON

RONALD VAN VEEN - VERTIV

THE FUTURE OF DATA CENTER COOLING INNOVATION, FLEXIBILITY & SUSTAINABILITY With the growth of artificial intelligence (AI) and the associated increase in computing power, the challenge of data center cooling is becoming more complex. Five industry experts share their insights and the steps needed to elevate data center cooling to the next level.

Craig MacFadyen, Director of Offer Strategy & Portfolio Management EMEA at Munters, emphasizes that flexibility is key to the future of data center cooling. “The best strategy now is to be flexible and to resource that flexibility,” he says. “It’s not yet clear how much computing power will be required or how we can achieve this in the most efficient way. The next two to four years will be a period of learning and adjustment.” This uncertainty surrounding future cooling needs stems from rapid developments in technologies like AI and machine learning, which bring new challenges to data center infrastructure.

The need for system flexibility becomes even more apparent when retrofitting older data centers.

“These structures often lack the strength to support the additional weight of liquid cooling, such as with immersion cooling,” MacFadyen explains. Nevertheless, he sees opportunities to use smaller data centers as testing grounds for new technologies. “These smaller centers are ideal for testing technologies like liquid cooling at scale, where they can benefit from utilizing higher IT loads with the same input power.”

FUTURE FOR AIR-COOLED SYSTEMS This does not mean that the more traditional aircooled system has no future in data centers, is the belief of David McLean Global Sales Development Director Commercial Building Services Data Centers at Grundfos. “Their role will evolve,” he says. “We will see a rise in hybrid systems using air and liquid cooling.”

Air-cooled systems should be considered when upgrading existing data centers. “This can be a complex process,” says MacLean. “There are physical limitations, such as a lack of space, in addition to the need for structural adjustments. Other challenges include downtime during the upgrade and potential compatibility issues with existing equipment.”

NO ONE-SIZE-FITS-ALL SOLUTION The discussion about combining air and liquid cooling is further elaborated on by Klaus Dafinger, Marketing Manager at Legrand Data Center Solutions. “There is never a one-size-fits-all solution, nor will there be one,” he states. Flexibility in cooling systems is essential for future data centers, where both air and liquid cooling will coexist, depending on the situation.

Dafinger also highlights the growing energy demand per rack, which could rise to as much as 80 kW in the future. This necessitates the development of cooling systems capable of handling a wide range of cooling needs. “Current racks range from 3 to 8 kW, but this could rise to 30, 40, or even 80 kW. The ability to support this range will determine the suitability of cooling systems.” The transition to liquid cooling is inevitable, but it must occur gradually, with air cooling still playing a significant role.

LIQUID COOLING IS CRUCIAL The future of data center cooling is further defined by companies like Rittal, which are developing solutions to improve data center energy efficiency.

Svetlana Iakovleva, Sales Director IT Colocations Central Europe at Rittal, stresses that the rise of increasingly powerful chipsets has an impact on cooling requirements. “Air can no longer provide the necessary cooling capacity.” This has led to the development of advanced direct-to-chip liquid cooling systems, such as the rack format 1-megawatt Cooling Distribution Unit (CDU).

Iakovleva notes that liquid cooling is crucial for nextgeneration data centers, especially as chip density continues to increase. “Hyperscalers want new data centers capable of handling liquid cooling, while smaller data centers with lower-density clients will stick with air cooling for longer.” For Rittal, this means providing flexible solutions that can upgrade existing data centers to be liquid-cooling-ready without requiring a complete infrastructure overhaul.

EXPERT INTERVIEW

THE USE OF WATER AS A COOLING MEDIUM Benjamin van Lent, Sales Director Solutions & Mega Projects Europe at Watts Water, points to sustainability and the impact of water usage in data center cooling. “Water will be increasingly needed for efficient cooling systems,” he says, referring to innovative applications like using greywater, river water, rainwater, and even seawater for cooling.

In addition to water usage, Van Lent sees significant potential in circular cooling systems. “Recycling will be a key factor in the future,” he says. This means data centers can repurpose residual heat for other purposes, such as heating nearby cities, contributing to a circular economy. Reusing wastewater and optimizing energy consumption can also help reduce the environmental footprint of data centers.

CRAIG MACFADYEN- MUNTERS

SVETLANA IAKOVLEVA - RITTAL

The rapid growth of AI requiring increased capacity naturally calls for an additional challenge to develop more reliable, sustainable, and efficient cooling systems, including flow equipment products, for traditional air as well as liquid cooling. “Still, water remains an important element in this process.”

BENJAMIN VAN LENT - WATTS WATER

BALANCING INNOVATION, FLEXIBILITY, AND SUSTAINABILITY The challenge of data center cooling is both a technical issue and a strategic one. As MacFadyen states, “We must be prepared for a future where computing power and cooling needs can evolve significantly.” This requires a balance between technological innovation, flexibility, and sustainability.

Companies like Munters, Legrand, Rittal, Grundfos, and Watts Watter play a crucial role in supporting this transition by developing advanced cooling systems capable of meeting both current and future challenges. Data center cooling will require a hybrid approach, where air cooling, liquid cooling, and other innovative technologies work together to support the growing demand for computing power.

KLAUS DAFINGER - LEGRAND DATA CENTER SOLUTIONS

DAVID MCLEAN - GRUNDFOS

BUILDING TOMORROW’S DATA CENTERS: SUSTAINABILITY AND AI TAKE CENTER STAGE When building the data centers of the future, it is essential that they are prepared for changing demands. “The construction itself is largely the same as before, but the challenges lie in dealing with today’s limitations.”

“Assuming already the use of sustainable materials, circular construction and installation, and the reuse and prefabrication of (parts of) buildings and installations, the primary challenge in the data center industry will be the commitment to becoming increasingly efficient with energy and water”, explains Arno Uiterweerd, Managing Director at Unica Datacenters: “The existing datacenters are very limited in terms of design and setup for these goals, and adapting existing datacenters to highperformance computing, such as for AI, should be seen as an opportunity to simultaneously elevate sustainability at those sites.”.

Looking at the investments, the ratio in a datacenter has been two-thirds technology and one-third construction for years. Uiterweerd: “We do see that the ratio between gray space (technical rooms) and white space (data floor) has changed. The share of gray space is increasing.” In terms of cooling, the Managing Director believes in a hybrid approach. “I foresee traditional air-cooled data centers combined with high-performance computing spaces in the future. This not only means new technology, but also new partnerships between suppliers and operators.”

SUSTAINABLE CONSTRUCTION According to Mercury, building next-generation data centers is closely linked to sustainable construction methods and innovative technologies. The company is strongly focused on integrating ESG (Environmental, Social, and Governance) responsibilities into the construction of new data centers, explains Managing Director Alan Clinton.

“The design phase is crucial to minimizing carbon emissions,” says Clinton. “Our ESG strategy increasingly emphasizes the sustainable development of our projects.”

The challenges in terms of skilled labor also lead to an emphasis on Off-Site Manufacturing (OSM) and modular power and cooling modules. These prefabricated units can be efficiently installed in data halls, saving time and increasing efficiency. “We have invested heavily in our OSM capabilities to meet the growing and complex demands for next-generation data centers,” Clinton said.

AI IN THE DATA CENTER INDUSTRY AI plays a key role in improving both the construction and operational processes of data centers. At Mercury, AI is already used for pattern recognition in visual data from construction sites, which improves real-time safety measures. In addition, AI-based tools are used for schedule optimization, resulting in faster and more efficient project deliveries.

Jakob Jul Jensen, Director and Head of Data Center Solutions at Danfoss Climate Solutions, also emphasizes the role of AI. Not only in data center management, but especially in saving energy: “AI can be a driving force for energy savings in data centers.

You can use AI or machine learning to actually reduce your energy footprint.” This is illustrated by an example of Google, who used DeepMind 10 years ago to optimize the energy consumption of their data centers. This illustrates how technology can help reduce energy consumption, which will be of great importance for the data center industry in the future.

EXPERT INTERVIEW

THE FUTURE OF DATA CENTERS IN EUROPE Developments in the data center industry are likely to increasingly depend on the availability of sustainable energy and infrastructure in the coming years.

Jensen (Danfoss) notes: “If we look at the larger AI training centers, they will be built where the energy is available.” This means that new locations may emerge outside of traditional data center hotspots such as Frankfurt, London, Amsterdam and Paris.

However, the grid infrastructure in many European regions is not yet prepared for the enormous energy needs of these new data centers.

With the growing demand for AI and HPC technology, Danfoss expects 2025 to be a key year for liquid cooling and AI high-performance computing to become mainstream. Jensen puts it this way: “We are looking forward to the first AI data centers, data centers that are truly designed for AI, being designed and built now. 2025 looks set to be the year when liquid cooling and AI high-performance computing will no longer be seen as a hobby, but will become mainstream.”

ARNO UITERWEERD - UNICA DATACENTERS

ALAN CLINTON - MERCURY

JAKOB JUL JENSEN - DANFOSS

FIBER OPTICS:

A KEY TECHNOLOGY FOR AI In the world of artificial intelligence (AI), the infrastructure of data centers is evolving at an unprecedented pace. Fiber optic technology plays an increasingly important role in this sector. Manja Thessin, Market Manager at AFL, and Alastair Waite, Senior Data Center Market Development Manager at CommScope, provide an in-depth look at how fiber optics support the growing demands of AI-oriented data centers.

THE LIMITATIONS OF COPPER While copper is still used in data centers, it has significant limitations. “Copper has distance limitations. Within a data center, the distance quickly exceeds Ethernet’s 100-meter limit,” Thessin explains. “Moreover, copper takes up more space in increasingly dense networks. Fiber optics provide significantly more transmission capacity within the same physical space.”

The rise of generative AI has led to an exponential increase in demand for bandwidth and speed within data centers. Thessin explains: “First and foremost, it’s about the unprecedented bandwidth required in AI-oriented data centers. The amount of fiber optics needed to process all the data is enormous compared to traditional hyperscale or on-premises data centers. We’re talking about the ultra-high capacity required to transmit data at petabits per second, which is unprecedented.”

Waite elaborates: “For AI installations, copper DACs (Direct Attach Cables) have limitations in terms of speed and distance. A newer type of DAC, AECs (Active Electrical Cables), can support data rates of up to 800Gb but are limited to just 7 meters. This makes them suitable only for connections within a rack or between adjacent racks.”

Waite adds: “Fiber optics is a key technology for AI. The scale of generative AI models, the diverse nature of the data, and the speed at which GPUs operate necessitate a medium like fiber optics. It enables the speed and reliability required to meet these demands.”

Another critical aspect is low latency. Thessin emphasizes: “Fiber optics ensure virtually instantaneous data transfer, which is especially important for AI inference. This refers to the realtime processing and decision-making that occurs at the network edge or on devices themselves.”

A FUTURE-PROOF INVESTMENT Data centers face significant investments, making the choice of infrastructure critical.

“Today’s data centers are fiber-focused from an infrastructure perspective,” says Thessin. “Fiber optics offer scalability and flexibility, ensuring that investments made today remain viable in the future.”

Waite advises data center owners: “Consider the future-proofing of your infrastructure. Design cabinets and cable trays in data halls with extra capacity to accommodate the greater number of cables and fiber cores needed to support AI. Higherspeed transceivers, such as 400G and 800G, are already common and require the appropriate fiber optic connectors, like the MPO-16 connector with APC polishing.”

Existing data centers can often be adapted.

Thessin notes: “If there’s a hybrid configuration with multimode and single-mode fiber, this can serve as a foundation for scaling up.” Waite agrees: “Those data centers designed with flexibility in mind from the beginning will be best positioned.”

EXPERT INTERVIEW

ACCELERATING AI PERFORMANCE Recent reports, including those from IBM, show that fiber optics can significantly enhance AI performance.

Waite explains: “Any delay in delivering data to GPUs is costly. It leads to idle GPUs and a waste of an organization’s CAPEX and OPEX budgets.”

The connectivity within AI clusters requires highquality fiber optic cabling system and wellmaintained connector surfaces. Thessin confirms:

MANJA THESSIN - AFL

“Modern AI clusters use thousands of GPUs. The infrastructure must be flexible and future-proof, even for technology that doesn’t yet exist.”

LOOKING AHEAD The technological advancements in AI data centers show no signs of slowing down. Waite looks ahead: “We expect data rates of 1.6Tb soon. To support the necessary bandwidth, more fiber cores will be deployed both within and between racks in the data hall.”

Additionally, power supply and location choices are becoming increasingly important. “In the past, data centers were often grouped around major cities,” Waite says. “Today, owners are seeking new locations with sufficient power capacity to fuel AI clusters.”

Thessin concludes with a warning: “We often hear customers say, ‘We’ll never need that much fiber.’

But within a few years, the opposite proves true.

The transition from 12-fiber to 16-fiber connections happened in less than two years. It’s essential to make infrastructure modular and prepare for future changes.”

ALASTAIR WAITE - COMMSCOPE

EUROPEAN OUTLOOK

AI RESHAPES EUROPE’S DATA CENTER LANDSCAPE More than 1GW of new data center capacity is expected to be delivered in Europe this year, a record amount likely falling short of customer needs.

The projected growth of Europe’s total supply will happen in Frankfurt, London, Amsterdam, Paris, and Dublin (FLAPD); the primary markets are expected to grow by 20% collectively in 2025.

the new supply delivered in most large European metro markets. The combination of strong demand and limited supply to match it has led to a sharp decline in available capacity across Europe. The vacancy rate in the 15 European markets tracked by CBRE likely closed below 10% for the first time ever.

CBRE reports its 2024 and Q4 data in February.

The new data center supply across Europe will likely be pre-let to hyperscalers and other organizations needing AI-ready supply before the facilities are opened, a continuation of a multi-year trend. Building data centers in Europe is becoming increasingly difficult, given that the land and power needed for them are in shorter supply than ever. This is especially true of the largest data center submarkets, such as Schiphol-Rijk in Amsterdam and Sossenheim in Frankfurt.

The vacancy rate of FLAPD is already below the 10% mark, a sign that capacity is an increasingly precious commodity in the primary markets. It is expected to decline to 7% this year. Despite the lack of availability and the challenges of delivering new supply, the appetite for capacity is growing. Thirdparty providers are typically able to deliver capacity faster and operate data centers more efficiently than their customers.

Demand, however, has continued unabated. Takeup is expected to almost match the new capacity delivered this year across the 15 European markets tracked by CBRE. However, take-up regularly exceeds

As a result, demand is on the rise given continued interest from hyperscalers and new demand from large suppliers of AI services. Providers operating in Europe are building larger data centers that match the requirements of their largest customers.

TABLE 1: EUROPE TAKE-UP (MW)

TAKE-UP CLIMBS FURTHER DUE TO AI Take-up has grown in concert with the rise of the average size of facilities delivered across the continent. For example, take-up in FLAPD this year is expected to reach 695MW given strong hyperscaler appetite for capacity. However, AI demand has emerged in a meaningful way in select European countries such as Norway, where there hasn’t been as much data center activity traditionally.

Data centers in Norway and Sweden have become attractive to some GPU-as-a-service providers given the ability of some providers in those countries to meet their considerable power requirements and the relatively low cost of electricity in the region.

The resource to build new data centers, if not the capacity to match their requirements, is sometimes available in Norway and Sweden as opposed to the larger metro markets of Europe.

That said, deals to let multiple megawatts of colocation data center capacity to GPU-as-a-service providers have become more commonplace. These companies are typically based in the U.S. and want to quickly establish a footprint in Europe. CoreWeave, for example, has said it will spend $1bn on data center capacity in the UK. AI-related companies are typically flush with venture capital, need to process large data sets, and have ambitious plans to expand; providers usually want to double their footprint in a year. As a result, Takeup should continue to climb further in 2025 and in the years to come. Demand signals from the buyers of capacity remain strong especially in London and Frankfurt, Europe’s two largest data center markets.

TABLE 2: EUROPE NEW SUPPLY (MW)

EUROPEAN OUTLOOK

FLAPD: FRANKFURT AND LONDON ON THE RISE The majority of FLAPD take-up is expected to happen in Frankfurt and London; we expect almost two thirds (62%) of demand to stem from those two metro markets this year.

Moreover, Frankfurt is expected to be the second market with more than 1GW mark of delivered capacity by year end. As such, Germany’s financial capital is expected to narrow the gap between itself and London, the largest leased data center market in Europe.

However, data center providers are looking to accommodate those with cloud requirements or AI-specific needs in a variety of markets, not just Frankfurt and London. A distinct lack of AI-ready facilities, a shortage of necessary chipsets, and little available power across Europe is leading demand to parts of countries where requirements aren’t typically met.

VACANCY DECLINES IN SECONDARY MARKETS In secondary market terms, take-up is expected to be similarly strong this year across many secondary markets such as Berlin, Madrid, Milan and Warsaw.

Vacancy in smaller European data center markets, like Madrid and Milan, is on the decline as customer demand for space in those markets has grown.

In future, providers are likely going to have to meet demand, especially of the AI variety, outside the largest data center markets of Europe given issues sourcing land and power.

Moreover, the strong demand from customers will lead to a further decline in available supply this year despite the record amount of new capacity expected.

CBRE expects the European vacancy rate to close at 8.8% come end of 2025, easily a new low and the likely the ‘new norm’ in vacancy rate terms.

GROWTH OF PRICING Predictably, data centers have grown considerably of late despite the record amount of new supply that is expected. The growth of pricing is largely attributable to higher build costs incurred by providers and the supply-demand imbalance that is now the norm in many European markets. This has largely been done to account for higher data center construction costs.

Providers have also been able to do so because appropriate data center space for hyperscalers has been harder to secure. However, growth of pricing

for data center space suitable for hyperscalers is expected to relent in 2025. Providers have increased the cost of leased data center capacity for hyperscalers by double-digit rates in some cases over the past two years.

CBRE expects strong hyperscaler appetite for capacity designated for cloud purposes next year and beyond, though the acceptance for double-digit increases annually is believed to be on the decline.

THE IMPORTANCE OF DIGITAL INFRASTRUCTURE

THE IMPORTANCE OF DIGITAL INFRASTRUCTURE IN STRENGTHENING EUROPE’S COMPETITIVENESS AMID GEOPOLITICAL REALITIES Digital infrastructure is far more than a technological enabler; it is a strategic asset central to Europe’s aspirations for sovereignty and competitiveness.

By addressing its dependencies, capitalizing on emerging opportunities in AI and quantum technologies, and integrating sustainability into the development, Europe can build a resilient and independent digital ecosystem. However, this transformation requires coordinated efforts across member states, robust public-private partnerships, and a long-term commitment to innovation and environmental stewardship. A Europe that invests boldly and acts decisively in its digital future will not only secure its place in the global digital economy but also establish itself as a model for balancing technological progress with sustainability and sovereignty.

In the late twentieth century, western democracies believed they had won. In his influential book “The End of History and the Last Man”, Francis Fukuyama described in 1992 how liberal democracy would become ubiquitous as the final stage of ideological evolution. Communism collapsed in Europe as the Soviet Union fell apart. It was only a matter of time before even the most stubborn pockets of resistance would embrace the Western world order. Surely, the Chinese student protest would lead to the end of the communist party. And when it didn’t, the Arab Spring in the early 2010s delivered new proof of how liberal democracy was unstoppable.

However, Fukuyama was proven wrong. China developed into an economic superpower, Russia is resisting aggressively what they view as Western expansion, and the Arab Spring led mostly to new authoritarian regimes and major humanitarian crises. In the meantime, the Western world is losing

cohesion. Brexit was a blow to the EU and there’s an increase of anti-democratic forces across Europe.

Additionally, we are not so sure anymore if we can depend on the US as a powerful ally.

Economically, the EU is – since Brexit – no longer the biggest economy trailing the US, with China on its heels. And in terms of economic growth, the EU is clearly outpaced by both of them. The growth is driven by technology and innovation, and over the past decades, Europe has become increasingly dependent on non-EU technology. Traditional stronghold sectors, such as car manufacturing are under huge pressure, while Europe more and more relies on China for the electrical transition – from solar panels to batteries and from windmills to electric cars. While it relies on the US for computer technology and social media. And let’s not forget about TikTok and Tesla to complicate things further Also, it is obvious that Europe does not share all of the same values when it comes to technology.

Europe has serious concerns about the ethical and societal challenges that come with the unlimited adoption of new technologies and media. The EU has more concerns about protecting people’s privacy and intellectual property, the risk of misinformation, misconduct, and discrimination associated with social media and artificial intelligence, and the climate impact of production and usage. So far, the EU has often been successful in adjusting the behavior of technology giants. However, there are clear signs that the new US government will try to deregulate the technology sector, which could lead to new clashes. Even if it doesn’t come to that, it has become difficult to ignore the potential risks of depending heavily on non-EU technology.

With increased geopolitical differences, values, and tensions and an economy that is outpaced and often dominated by its global counterparts. Increasingly, European countries have started to realize that structural changes need to be implemented to drastically strengthen the EU economy and become less dependent on minerals, products, and services from across the oceans. That will require making some difficult choices. A crucial area where key choices need to be made is Europe’s digital infrastructure.

BUILDING DIGITAL SOVEREIGNTY Digital infrastructure is the foundation of modern economies, enabling innovation, global trade, and the secure flow of information. In Europe, its importance transcends economic utility, becoming a strategic imperative for geopolitical resilience, economic independence, and long-term competitiveness. As the global balance of power shifts and nations vie for technological dominance, Europe’s ability to “stand on its own feet,” as Mario Draghi emphasized, will hinge on the scale and robustness of its digital infrastructure. This includes data centers and also the broader ecosystem, encompassing cloud computing, high-speed connectivity from the subsea cable to the last mile, artificial intelligence (AI), and quantum technologies. Achieving this vision demands addressing the need for digital sovereignty, capitalizing better and more aggressively on emerging opportunities, resolving vulnerabilities, and ensuring sustainable development.

Digital sovereignty has emerged as a critical priority in the context of a multipolar world. Europe’s reliance on non-European providers for key technologies—ranging from cloud platforms and AI to semiconductors and networking hardware— has exposed vulnerabilities. These dependencies leave the region susceptible to external geopolitical pressures, including policy shifts in the United States and China’s assertive state-driven technological strategies. On top of that, our digital infrastructure is under constant threat from espionage and sabotage due to hybrid warfare tactics from state actors.

In some cases, we have to deal with the collateral damage from cyberattacks focused on the Ukrainian infrastructure. Still, most recently recently subsea cable breaches on different occasions in the Baltic Sea may have to be attributed to these tactics as

well. Even more obvious have been the activities of Russian ships, mapping the infrastructure at the bottom of the ocean in the North Sea and other waters. There is a strong need to better protect our (digital) infrastructure in international waters, which has led to NATO erecting the so-called Critical Undersea Infrastructure (CUI) Coordination Cell at the beginning of 2023 at NATO headquarters and, in 2024, the new Maritime Centre for Security of Critical Undersea Infrastructure in Northwood, UK, which acts as the operational hub.

THE IMPORTANCE OF DIGITAL INFRASTRUCTURE

The Critical Undersea Infrastructure Coordination Cell (CUICC) serves as a pivotal entity for safeguarding Europe’s essential undersea assets, such as cables and pipelines, that underpin the region’s data transmission and energy supply. Its primary mission is to coordinate efforts across member states to protect these infrastructures from threats like natural disasters, cyberattacks, and sabotage, which have become increasingly prevalent in today’s geopolitical climate.

The CUI Coordination Cell contributes to European digital infrastructure by ensuring the security and resilience of undersea cables, which are responsible for carrying over 95% of global internet traffic. By mitigating risks and facilitating rapid responses to incidents, the cell plays a key role in maintaining uninterrupted data flows, a fundamental requirement for Europe’s digital economy and connectivity. Through their activities, they enhances the resilience of Europe’s infrastructure against cyber and physical threats, minimizing potential disruptions to key digital services.

In addition to safeguarding data transmission, the cell supports Europe’s broader strategic goals, such as the integration of renewable energy sources via undersea pipelines, thereby aligning with the EU’s green and digital transitions. It also boosts strategic autonomy by reducing reliance on external entities to manage critical infrastructure and foster the development of advanced monitoring and security technologies, driving innovation in digital protection.

The CUI Coordination Cell is especially critical in light of growing geopolitical tensions and incidents involving infrastructure sabotage. By acting as a central platform for information sharing, risk assessment, and coordinated action, the cell ensures that Europe’s digital and energy ecosystems remain robust and secure, underpinning economic growth and technological leadership in a rapidly evolving global landscape.

The ability to maintain control over critical digital assets, secure sensitive data, and ensure the resilience of key services is no longer optional; it is a matter of strategic necessity. To achieve digital sovereignty, Europe must invest heavily in its digital infrastructure, reducing reliance on foreign providers while fostering homegrown capabilities. Initiatives like GAIA-X, which aim to establish a European-standard cloud ecosystem, can play a vital role in this regard, ensuring data is stored and managed in compliance with European values of privacy, transparency, and accountability and they may deserve more support than they are getting now.

Beyond sovereignty, Europe’s digital infrastructure offers vast opportunities to enhance competitiveness. The rise of AI, for instance, is poised to revolutionize industries ranging from healthcare to manufacturing. Europe can leverage its strong industrial base and research expertise to develop AI systems tailored to its needs, particularly in ethical AI and industrial applications. Similarly, quantum computing holds the promise of transformative advancements, from solving complex logistical problems to pioneering breakthroughs in material science. Europe already boasts a robust academic foundation in quantum technologies, and with the right investments, it can position itself as a global leader in this field. Moreover, the integration of digital infrastructure with sustainability goals presents Europe with an opportunity to lead the global push for decarbonization. Smart grids, energy-efficient buildings, heat-reuse from data centers, and AIoptimized renewable energy systems can drive economic growth while reducing the environmental impact.

However, Europe’s digital infrastructure lags behind that of the United States and Asia in scale, integration, and technological dominance. Europe has been putting a lot of focus on getting the last mile right, resulting in strong fixed and mobile broadband connectivity in many parts of the EU. Europe has built an infrastructure than gives its people and businesses quick access to global digital services, but is a big step behind in other crucial areas. The United States has achieved global leadership through hyperscale data centers, vast cloud ecosystems, and unparalleled investment in AI and software development. Meanwhile, China has rapidly scaled its digital infrastructure, driven by

centralized state investments in cloud computing, AI, and 5G networks. Pb7 Research estimates that less than 5% of the global AI data center capacity is currently located in Europe, and additional capacity is built faster and bigger in the US, China, across the rest of South East Asia and the Middle East. Gigawatt data center campuses and even multi-GW campuses are announced on the order of the day.

Europe’s digital landscape remains fragmented, with disparities in infrastructure development across member states and limited access to venture capital for scaling digital enterprises. This fragmentation hinders Europe’s ability to build the kind of unified and scalable infrastructure necessary to compete on the global stage. Furthermore, Europe’s reliance on imported technologies and energy resources compounds its vulnerabilities, particularly in the face of geopolitical shocks or supply chain disruptions.

To address these gaps, Europe must prioritize the expansion and modernization of its digital infrastructure. This includes investing in advanced data centers, deploying ultra-fast connectivity networks, and building robust AI and quantum computing capabilities. The development of a unified European cloud ecosystem, through projects like GAIA-X and other “Important Projects of Common European Interest” (IPCEI), can reduce dependence on non-European providers while fostering innovation and collaboration across industries.

Similarly, expanding 5G and laying the groundwork for 6G networks will be essential to support emerging technologies such as autonomous systems, the Internet of Things (IoT), and advanced industrial automation. And the EU needs to provide room for growth for data centers, to reduce the dependency on overseas data centers to store or process (AI!) European data.

“ EUROPE MUST PRIORITIZE THE EXPANSION AND MODERNIZATION OF ITS DIGITAL INFRASTRUCTURE ”

THE IMPORTANCE OF DIGITAL INFRASTRUCTURE

POWERING THE CHANGE The rapid scaling of digital infrastructure poses significant challenges, particularly with regard to energy consumption. Data centers, connectivity hubs, and high-performance computing facilities are energy-intensive. Over the past 10-20 years big steps have been taken to make data centers more efficient. The continued focus is visible in the latest amendment of the EU’s Energy Efficiency Directive, specifically focusing on energy (and water) efficiency, renewability, and also the use of residual heat. Still, the demand for data center space is growing so fast, that the climate footprint is likely to increase, while also contributing to the power grid congestion.

The struggle of grid congestion is a major inhibitor to data center growth, especially in the most developed data center hubs in Frankfurt, London, Amsterdam, Paris, and Dublin. This challenge is not uniquely European, far from it. Also in the US, it is becoming a struggle to power data centers. Overall, it is important to understand that data centers only contribute for a small part to congestion: it is a perfect storm of big shifts in power production (from fossil to renewable, from central to decentral, from stable to variable), electrification of industries and vehicles and, to a lesser extent, the digitalization of society that is experiencing a very strong period of growth due to a combined cloud and AI investment boom. Nevertheless, it greatly inhibits the of the sector, making the need to get access to power challenge number one.

The grid challenges are leading to a major wave of creativity and innovation, based on a crucial new rule in the industry: data centers are built where power is available, or power is moved towards the data center. To this day, data centers prefer to concentrate near connectivity hubs. However, with data centers moving from single digit Megawatts of IT power to dozens, increasingly concentrated in campuses with hundreds of Megawatts, investing in additional connectivity infrastructure becomes feasible. And since these major campuses cannot get access to power near connectivity hubs anyway, they move further out to a radius of about 50 kilometers from traditional data hubs, sometimes even more.

For some workloads, such as AI training or social media, limited latency requirements allow them to even move to the Northern edges of Europe, where renewable power is cheap and widely available and cooling is most efficient due to the cool climate.

But the real creativity comes from finding energy sources where they are scarce or simply unavailable.

In Ireland, data centers look to gas turbines as a temporary power source, waiting until EirGrid can provide them with more capacity. In the US, there’s also a growing trend of using gas turbines, with a preference for natural gas. But there are also startups looking into powering data centers with hydrogen. Although it remains relatively expensive for the foreseeable future, it provides a solution for very congested areas where data centers need to add capacity. But the biggest headlines in the past 12 months were about the sector’s new appetite for nuclear power. Hyperscalers are at the forefront, looking at a mix of reopening closed-down nuclear power plants and building new data centers there to investing in small modular reactors (SMRs). There are permitting challenges, but many – not all - are being tackled effectively. Also in Europe, the proponents of investing in nuclear options are becoming more vocal. In Sweden, Samsung C&T recently partnered with energy company Karnfull Next AB to jointly pursue projects in the European small modular reactor (SMR) market1 . The are plans to have the first SMRs operational by as early as 2032, specifically to power data centers in Sweden. The example shows the need and demand for electrical innovation in the European marketplace and demonstrates the dependence on non-EU “outsiders” at the same.

“ THE REAL CREATIVITY COMES FROM FINDING ENERGY SOURCES WHERE THEY ARE SCARE OR SIMPLY UNAVAILABLE. “

Another way data centers (can) contribute to power grid challenges is by helping to balance the power grid. There are data centers who help out by leveraging their backup diesel aggregates and this may even increase to reduce some congestion challenges. Since this practice is useful, it is not necessarily very sustainable. But there are very concrete opportunities, that a growing number of operators are looking into. One of the areas is investing in Battery Energy Storage Systems (BESS), with storage for multiple hours or more. BESS systems can be leveraged for flexibility services and other power trading applications and could also be part of an energy hub. It helps deal with congestion issues and, since it can be used internally during peaks, can lower the power contract requirements.

Another solution that is hailed to battle congestion is workload mobility: moving workloads in time or geographically as a service to the power companies, or to make optimal usage of the variations in availability of renewable power. Finally, also delivering residual heat to heating networks helps to reduce the power volume that is needed in the transformation from fossil-powered heating to electrical. The current volume of data center heat reuse is still well below 1% across the EU, but there is a combination of regulatory (it lowers the data center’s overall footprint, but that is often not recognized) and practical hurdles (distance to heat networks, the temperature is relatively low) that are holding back the change.

Despite the power challenges, sustainability must remain at the core of Europe’s digital transformation.

The expansion of digital infrastructure should align with the EU’s Green Deal objectives, ensuring that growth does not come at the expense of the environment. This entails designing energy-efficient facilities, integrating renewable energy sources, and adopting innovative cooling technologies to reduce the carbon footprint of data centers and connectivity networks. AI-driven energy management systems can optimize resource usage across digital ecosystems, while circular economy principles can minimize electronic waste by promoting recycling and reuse of components. Additionally, regulatory incentives, such as subsidies for green innovation and stricter carbon reduction targets for the tech sector, can accelerate the transition to a sustainable digital economy.

1

https://www.koreatimes.co.kr/www/tech/2024/12/419_387831.html

THE IMPORTANCE OF DIGITAL INFRASTRUCTURE

INVESTING IN OUR DIGITAL FUTURE The European Union stands at a critical juncture in its digital and economic future, where the strategic investment in data centers and large data center campuses can play a transformative role. As data continues to shape the modern economy, the infrastructure that supports its processing, storage, and transmission will have to be a cornerstone of technological sovereignty, sustainability, and ethical innovation. The EU’s commitment to these principles necessitates a bold vision where it develops its own robust data center ecosystem, guided by the EU’s unique regulatory framework and policy goals.

A central argument for the EU to invest in data centers is that it allows the region to operate under its own rules, particularly in terms of sustainability, ethics, and data sovereignty. Data centers are essential, even critical, infrastructure in the digital age, underpinning everything from AI development to cloud storage and e-commerce. By hosting these facilities domestically, the EU can enforce its stringent environmental standards, ensuring that data centers prioritize energy efficiency, waste heat recovery, and the integration of renewable energy sources. Moreover, the ethical handling of data— aligned with the General Data Protection Regulation (GDPR) and similar EU legislation—requires that the region exercise greater control over where and how data is stored and processed. This would prevent sensitive information from being subjected to weaker regulations in third countries, thereby protecting citizens’ privacy and ensuring accountability in data management.

However, achieving this vision requires action from both governments and the private sector. For governments, the challenge lies not only in providing the right financial incentives but also in creating an enabling environment for data center development.

Investments in renewable energy production must be scaled dramatically (as they already are) to ensure that the energy-intensive operations of data centers are sustainable. Working with the sector to allow and develop new nuclear options can attract investments from the sector as well. Or, vice versa, data centers will need to be encouraged to grow at locations of renewable power production, reducing the strains on power transport as a result and ensuring data center sustainability at the same time.

By expanding the production of green energy and improving the power transport infrastructure, the EU can address one of the primary barriers to scaling data center operations: the availability of clean and reliable energy. Additionally, governments must overhaul permitting processes, which are often mired in bureaucratic inefficiencies and hampered by local opposition, often characterized by the “Not In My Backyard” (NIMBY) phenomenon.

Streamlining permits and fostering community support through education and shared economic benefits will be key to overcoming resistance and accelerating deployment.

From the perspective of data center operators, the responsibility extends beyond merely meeting existing sustainability benchmarks. They must proactively contribute to energy transition goals by entering into Power Purchase Agreements (PPAs) that secure long-term access to renewable energy, ensuring stability for both the grid and their operations. At the moment, the digital sector is already the biggest PPA investor compared to other sectors.

These PPAs will be crucial in expanding the renewable production of power. Now renewable production is passing the 50% mark in many European countries, tendering for new offshore wind parks has become a challenge, as we see in Denmark’s failure to attract bidders for new offshore wind park2. PPAs can play a vital role in improving the business case for potential bidders. Helping to attract PPAs for these parks is beneficial for the energy transition as a whole, and, therefore, in achieving the EU’s climate goals.

To succeed in building a thriving data center ecosystem, the EU must also emphasize research and development. Collaboration between governments, universities, and private companies can lead to innovations in cooling technologies, modular design, and AI-driven energy optimization, which are essential for creating the next generation of efficient data centers. Furthermore, fostering cross-border partnerships within the EU will be crucial to ensuring that smaller member states can also benefit from these investments, creating a cohesive digital infrastructure that is both resilient and inclusive.

The case for the EU to prioritize investments in data centers is not merely an economic one but also a strategic and ethical imperative. By aligning this development with its sustainability goals, ethical guidelines, and commitment to data sovereignty, the EU can assert itself as a global leader in the digital economy while safeguarding its values. Governments must step up with investments in renewable energy and infrastructure, while data center operators must embrace innovative practices to integrate more deeply into the energy ecosystem. Together, these efforts will lay the groundwork for a sustainable and sovereign digital future, ensuring that the EU remains at the forefront of technological advancement in a rapidly evolving world.

“ DATA CENTERS ARE ESSENTIAL, EVEN CRITICAL, INFRASTRUCTURE IN THE DIGITAL AGE, UNDERPINNING EVERYTHING FROM AI DEVELOPMENT TO CLOUD STORAGE AND E-COMMERCE.“

Moreover, their participation in energy hubs can serve as a model for integrating decentralized renewable energy sources, allowing excess capacity to flow back into the grid and benefit local communities.

Data centers also have a role to play in alleviating grid congestion, a growing issue in many parts of Europe, by investing in on-site energy storage and engaging in demand-side management practices to balance load during peak usage periods.

2

https://www.reuters.com/sustainability/climate-energy/denmark-disap pointed-after-offshore-wind-tender-draws-no-bids-2024-12-05/

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STEPPING STONE DIGITAL REALTY IS BUILDING ITS NEWEST FACILITY AMS11 IN AMSTERDAM. THIS DATA CENTER WILL BE OPERATIONAL IN 2026. IN THE MEANTIME, WE LOOK AT ONE OF THEIR OTHER FACILITIES IN AMSTERDAM THAT IS NEARBY SCHIPHOL AIRPORT: AMS8.

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SERVERFARM GROWING AMSTERDAM’S AI ECOSYSTEM DATA CENTER OPERATOR SERVERFARM ADDRESSES THE PLANS OF THEIR AMS1 DATA CENTER IN AMSTERDAM.

Vai Potnis, VP Development, Serverfarm, EMEA Q: Why is Serverfarm in Amsterdam?

Q: Describe Serverfarm as a business?

Vai Potnis (VP): “When Serverfarm acquired AMS1 in VP: “We’re highly customer focused. From hyperscale 2019, it was clear that Hyperscale, AI and SaaS customer core to sustainable edge, we add value by understanding demand would be underserved. AMS1 fills a significant each customer’s very specific capacity needs.” gap in available capacity in the core of the City for the Q: What happens inside the AMS1 data center?

hyper connected workloads.”

VP: “A culture of dedication to excellence by highly comQ: What are the benefits for customers

mitted engineering experts with many decades of expe-

locating in Amsterdam?

rience. Like many data centers, from the outside AMS1

VP: “Amsterdam is continental Europe’s fixed connectiv- may not be the world’s most beautiful building. But in ity hub and has incredible 5G. The city is a magnet for terms of location and what’s inside, the beauty of AMS1 tech. We modernized AMS1 to serve demand with suita- is in the M+E future proof design, the cooling solutions, ble, high density, and highly connected capacity.”

power topology, modern equipment, flexible operation and secured clean power. And the people of course.”

Q: Was AMS1 impacted when Amsterdam imposed a moratorium on DC development?

VP: “Sustainable development is core to Serverfarm. Extending AMS1 capacity using methods within the Amsterdam Government’s policy guard rails in response to sustainability, power security and environmental concerns of citizens was a natural progression.”

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“YOU MUST ACQUIRE THE BEST KNOWLEDGE FIRST, AND WITHOUT DELAY” - ERASMUS

Serverfarm AMS1 Data Center - Points of Difference • Centrally located in the city, inside the A10 and just 3km from Station Centraal.

• Ideal location for needs of model building and applied AI workloads. AMS1 provides low latency benefits to Serverfarm’s AI/SaaS customers (and their customers) through edge proximity with hyperscale capacity.

• M+E design is future proofed for emerging AI. • Liquid direct cooling/immersion cooling ready.

• Densification benefits for deployment at scale – greater cooling performance results in greater IT capacity.

• Suitable for large scale deployments (2MW).

• Capex benefit at start of engagement.

• Secure, stable + sustainable utility feeds. AMS1’s secured power means available megawatts can be quickly dedicated to customer IT workloads without additional strain on the power grid.

• 99.99 resilience as standard matches the pairing, uptime, and customer SLA requirements of SaaS and AI. • Secure routing over fast fiber connectivity north to Nordics – south to Paris – east and south to Frankfurt – West to London and trans-Atlantic.

• Permanent on-site highly experienced engineering expertise.

• Early engagement with design and deployment experts (access to technical expertise).

• The benefit of an NVIDIA DGX certified data center in the heart of Amsterdam.

What customers can expect from Serverfarm AMS1 Through its sustainable infrastructure, AMS1 is leading the way for environmentally responsible AI platform and SaaS deployments aligned with the Netherlands’ ambitious goals for green energy and carbon neutrality.

From multi-megawatts for large cloud to accommodating SaaS scale ups or AI unicorns, Serverfarm’s AMS1 data centers supports companies at every growth stage.

With AMS1’s flexible colocation options, SaaS companies can scale their deployments seamlessly. AI and SaaS platform providers can expect bespoke services, tailored sustainable power and cooling along with clear capacity expansion roadmaps to match specific workload needs.

Security 24/7/365 onsite security guards, CCTV monitoring and ISO 27001, PCI DSS and SOC 2 (Type 1 & 2) compliance.

Power Already secured power means available megawatts can be quickly dedicated to customer IT workloads.

Cooling AMS1 includes liquid cooling options that reduce energy consumption while increasing efficiency for AI-driven and compute-heavy environments.

Connectivity AMS1 is connected to both AMS-IX and NL-IX internet exchanges.

Operations Management Serverfarm’s InCommand DMaaS cloud platform provides trusted data to manage day to day operations and inform strategic planning challenges.

Monitoring and management of every physical asset within the data center with complete visibility across shell infrastructure, power topologies, all electrical / mechanical equipment and components including server placement, CPU/GPU configuration, connection, capacity planning, hybrid, air and liquid cooling.

Sustainable Growth The recent AMS1 expansion was specifically designed to meet the demands of modern AI applications and high-performance computing (HPC). AI and SaaS companies expanding in Europe require the secure, sustainable, and scalable data center capacity that Serverfarm’s AMS1 data center provides for pairing and EU data sovereignty.

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NATASCHA EVERSHEDS SUTHERLAND

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GREEN DATA CENTER CONFERENCE Kudos already go to government officials in the field, also present during the conference. Seated in a mini-stand with great visibility, representatives of the environmental authorities (ODNZKG) were answering questions from the industry and were fully transparent on what is required to meet sustainability and efficiency goals.

One of the most interesting yearly events I like to attend is the Green Datacenter Conference organized by the DDA. For several reasons this has become one of my favourite events to join throughout the busy calendar year.

The latest conference took place on 6 November 2024, and despite the venue being the Jaarbeurs in Utrecht which is known for being a large-scale conference center in the Netherlands, the set up for this year’s conference felt remarkably intimate. Perhaps already the most attractive reason to attend, as it allows you to both networking and attending thoughtful insight discussions.

It is clear there is still much to gain on implementation of sustainable practices in design, construction and operation of newly developed data center sites. Strategies for energy efficiency, sustainable cooling, renewable energy integration, waste reduction, residual heat re-use and overall environmental impact reduction were all discussed during the day. One interesting comment that personally struck me was made in the last panel of the day: “How can we reduce the need of data?” Once again the Green Datacenter Conference inspired as never before. I am already looking forward to next year.

With the focus of the conference being sustainability and efficiency within the data center industry, the DDA has once again done a remarkable job in making this day useful and effective for its visitors. Amongst the speakers were not only industry representatives from Microsoft, Kevlinx, Digital Realty, Schneider Electric, Iron Mountain and Switch Datacenters but also representatives from governmental authorities.

In a heavily regulated market like the Netherlands with businesses and functions constantly competing with each other, it is the presence and insights of these government representatives that provides useful context on any future growth and development of the sector.

Biography Natascha Geraedts is a Senior Office Partner at Eversheds Sutherland and heads the Real Estate practice in the Netherlands. Natascha started her career at the Council of State and has over 20 years’ experience. Natascha is seen as the “go to expert” in the Dutch market for her knowledge in the data center sector and data center developments.

Natascha frequently speaks and publishes on environmental and regulatory aspects of data centers and she has been a yearly speaker at the Kickstart Europe Conference since 2021.

Alderman Van den Berg from the Municipality of Diemen shared their thoughts and experience on a project regarding use of residual heat, and kindly offered pro-active support to the audience on these aspects.

Esther Rommel, Representative from the Provincial Executive of North Holland, shared her view at the important regional level on shared solutions to achieving sustainable growth of the digital sector in light of the huge demands and constraints. Bringing policy makers from different government levels together on stage who are willing to publicly share their views, is firstly a great achievement.

In recent years we have often seen policy makers – sometimes for valid reasons also related to political sensitivity - shying away from important data center related topics. This has caused the sector all kinds of undesirable delays. It is hopeful to see that within the different governmental levels there seems to be a new morale on more openness and pro-activeness also on the higher policy level.

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GREEN DATA CENTER CONFERENCE 2024: COLLABORATION CRUCIAL FOR A SUSTAINABLE FUTURE DURING THE 8TH EDITION OF THE GREEN DATA CENTER CONFERENCE, THE PRACTICAL IMPLEMENTATION OF DATA THERMAL WAS ONE OF THE MAJOR TOPICS DURING THE EVENT OF THE DUTCH DATA CENTER ASSOCIATION (DDA) TEXT: Pim Kokke For years, the Green Data Center Conference has been one of the well-attended events on sustainability within the data center world. This year, the event attracted more than 500 visitors who learned more about the latest developments within the sector. For example, several data thermal projects were presented. Furthermore, the potential and challenges of liquid cooling and how to optimize data center energy efficiency through AI were examined.

Data center crucial for the future of the Netherlands After the opening remarks by Stijn Grove, managing director of the Dutch Data Center Association, it was time for the political panel on data center governance at the national, provincial and municipal levels. Led by former politician Kees Verhoeven, Gerard Schouw (Slim met Stroom), Esther Rommel (member of the Provincial Executive of North Holland) and Matthijs van den Berg (Alderman for Sustainability, Municipality of Diemen) discussed the importance of direction for data centers.

Especially given the challenges such as grid congestion, which many companies, including data centers, are facing.

One of the main outcomes of the conversation was that cooperation between governments and data centers offers perspective on new opportunities to better balance energy supply and demand, through smart solutions and heat networks. In addition, Esther Rommel gave a sneak peek into the revision of the North Holland data center strategy. North Holland is considering offering data centers space outside the currently designated clusters, but only if they add social value for the environment.

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Data thermal remains a hot topic One of the highlights of the event was the large announcement of Switch Datacenters and the municipality of Diemen. On September 3, it was announced that the Diemen Municipal Executive and Switch Datacenters had reached an agreement on residual heat from the data center. During the conference, Edgar van Essen (Managing Director, Switch Datacenters and Matthijs van den Berg (Alderman for Sustainability) discussed the plans regarding the new data heat project in Diemen.

The municipality of Diemen and Switch Datacenters are going to investigate whether the residual heat from the data center on the Treubweg can be put to good use in the near future as an alternative for heating the homes in Diemen and businesses.

From AI to Liquid cooling The afternoon program of the Green Data Center Conference was reserved for panel discussions with many industry experts focusing on the latest innovations within the sector. For example, in the session about liquid cooling, the panel members discussed what type of data center infrastructure is needed to ensure that this sustainable cooling method can be widely adopted. There was also an interesting discussion about the future of water as an energy source within data centers. Furthermore, a presentation that attracted a lot of interest was devoted to how data centers can use Artificial Intelligence (AI) to gain insights into their consumption and at the same time - through AI - immediately take practical measures to increase energy efficiency.

The Eindhoven region is also increasingly looking at the use of 'data thermal' (residual heat from the data center).

This was announced during the presentation by Rob Stevens (CEO, Interconnect) and Ronald Zwart (Project Lead Energy Systems, Municipality of Eindhoven). During this presentation, they elaborated on how Interconnect is going to phase out a bio-energy power plant in the Meerhoven neighborhood by using data thermal. According to the plans, Interconnect's data center in Eindhoven can be connected to Meerhoven's existing heat network as an alternative source. Interconnect will then be able to transfer its residual heat to the grid via a heat exchanger.

The company will receive cold in return via the heat exchanger. As a result, the company has to use less cooling, which saves energy.

In sum, the data center industry continues to adapt itself at a rapid pace to operate as sustainably as possible.

Engagement of policymakers and provinces The event attracted a large number of policymakers from different government levels. Traditionally, the province of North Holland had dedicated time slots with their own sessions. In one of these sessions, Dialogic explained their recent report on energy flexibility, and the municipality of Amsterdam talked about the bottlenecks of data thermal in their region. Furthermore, the province of Zuid-Holland also organized a session in which they focused on a data center strategy in their region.

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