Why the EU Loves Data Centers and is Pushing for Many More
By Paul Steidler: U.S. progressives often speak longingly of the European Union’s tough regulatory regime for tech and other companies and its emphasis on addressing climate change.
What they probably have a much harder time with is that the European Commission, the governing body of the European Union, is aggressively pushing for AI deployment, including the massive and prompt construction of data centers.
This process was initiated by a September 2024 report by former European Central Bank President Mario Draghi for the European Commission. He sternly warned of Europe’s decline in competitiveness, its need to place far greater emphasis on technological development, and the many benefits of AI, especially in energy and health care.
Today, the European Commission is struggling to turn Draghi’s recommendations into reality.
“The EU aims to triple its data centre capacity by 2035,” (bold in original) says the European Commission on its website. And the EU has a substantial number of data centers, with approximately 3,000 already up and running.
AI is viewed as extremely positive and important by the European Commission. Again, from its website, “AI is a disruptive technology that determines productivity growth, and future prosperity. However, Europe currently faces a critical deficit in large-scale computing infrastructure … Addressing this shortage is a central pillar of the AI Continent Action Plan, which positions the massive scale-up of computing capacity as a strategic prerequisite.”
This is good news for the 27 member countries of the European Union and the United States. The U.S. has the technological expertise and products that it will gladly sell to the EU, including through joint ventures with European companies, to deploy AI and data centers there.
It is important the European Commission address major issues, and core policy issues, if it is truly intent on a massive expansion of data centers and widespread AI adoption. Electricity is more expensive in the EU and major investments will be needed in its grid. The EU has adopted a hostile business approach to U.S. tech industry leaders, which may understandably make them reticent to make the major investments Europe wants and needs.
The European Commission knows that AI is a disruptive and positive technology. What it may soon have to come to terms with is that, in order for Europeans to realize the full and immense benefits of AI, fundamental regulatory and energy policies will likely have to change.