Grundfos Report Warns EU Data Centre Energy Demand Could Triple to 9% of Electricity Use by 2030

A new report by Grundfos, produced alongside Alfa Laval and RISE Research Institutes of Sweden, warns that electricity demand from EU data centres is likely to rise from around 3 percent today to as much as 9 percent by 2030, intensifying pressure on existing energy infrastructure and water supply at a moment when Europe is simultaneously pursuing digital sovereignty and decarbonisation ambitions. The report, titled Scale and Secure: Powering Europe's Digital Sovereignty, argues that the explosive growth of AI is adding pressure to EU decarbonisation efforts while creating an opportunity for Europe to leverage its regulatory leadership to build a more resilient and sustainable AI ecosystem. The publication draws on research from the International Energy Agency, the European Commission, the European Parliament Research Service, McKinsey and Company and the United Nations Environment Programme.

 

The Water and Energy Constraint Challenge

 

The tripling of data centre electricity demand as a share of EU consumption by 2030 would represent one of the most significant structural shifts in European power system planning, requiring substantial investment in new generation, transmission and distribution infrastructure to serve facilities that typically require continuous, highly reliable power supply. Water constraints add a further dimension to the challenge, as data centre cooling systems consume significant volumes of water in regions already facing supply stress from climate-driven drought and agricultural competition. The combination of energy and water pressure on local systems means that the pace and location of data centre development has consequences extending well beyond the immediate infrastructure investment.

Inge Delobelle, Executive Vice President and Chief Executive Officer of Grundfos' Industry division, said efficiency must be the default for data centre growth, and that clear and predictable policy frameworks should guide decisions and speed up investment in proven systems that reduce water and energy consumption. She framed this as supporting responsible growth that safeguards local resources rather than treating data centre development as unconditionally positive for host communities. The emphasis on efficiency as the baseline expectation rather than an optional aspiration reflects a growing policy consensus that the digital infrastructure buildout must be governed rather than simply enabled.

 

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Europe's Regulatory Opportunity

 

The report argues that Europe is positioned to leverage its global regulatory leadership to shape a more sustainable AI ecosystem, building on its established track record in setting technology standards that influence global practice beyond EU borders. The European challenge, according to Bent Jensen, Executive Vice President and Divisional Chief Executive Officer for Grundfos Commercial Business Services, is not whether data centres should be built but how they are built and operated efficiently. He said that with clear standards, coordinated planning and political will, Europe can continue to attract digital investment while reducing pressure on scarce resources and securing its digital sovereignty for the future.

The framing of efficiency and resource governance as prerequisites for competitive advantage rather than constraints on digital investment reflects a strategic argument that responsible AI infrastructure development and economic competitiveness are complementary rather than conflicting objectives. Europe's regulatory credibility, demonstrated through frameworks such as the EU AI Act and the EU Green Deal, gives it leverage to set data centre sustainability standards that other jurisdictions may adopt or align with. This influence is particularly valuable in a sector where global technology companies are making long-term infrastructure commitments that will shape resource consumption patterns for decades.

 

Policy Recommendations and Technical Solutions

 

The report's recommendations address both the regulatory framework and the technical infrastructure needed to support sustainable data centre growth. Integrating water and energy governance into all data centre performance standards would establish a comprehensive accountability framework covering both resource types rather than focusing solely on power usage effectiveness. Mandating public reporting of both power usage effectiveness and water usage effectiveness would create the transparency needed for regulators, investors and communities to assess the full environmental footprint of data centre operations.

Streamlining permitting for facilities using best-in-class efficiency technologies would provide a commercial incentive for developers to adopt superior cooling, power management and water recycling solutions rather than defaulting to conventional approaches. Targeted incentives for retrofitting older facilities address the existing stock of less efficient infrastructure, while investment in reclaimed water systems and heat reuse infrastructure creates the enabling environment for circular resource management at data centre scale. Heat reuse in particular represents a significant opportunity, as the waste heat generated by data centres can supply district heating systems, reducing both the environmental cost of data centre operations and the energy demand of adjacent communities.

 

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Outlook for Sustainable AI Infrastructure in Europe

 

The Grundfos report contributes to a growing body of analysis examining whether Europe's digital sovereignty ambitions can be achieved within its climate and resource sustainability commitments. The tension between accelerating AI infrastructure development and maintaining decarbonisation trajectories is becoming a defining policy challenge for EU member states, particularly those hosting or planning significant data centre capacity. Resolving this tension requires governance frameworks that treat digital infrastructure as a managed resource-intensive sector rather than as a default economic good that should simply be facilitated at maximum speed.

Whether the EU can develop and implement the regulatory frameworks recommended in the report quickly enough to shape the current wave of data centre development will depend on the pace of political consensus-building across member states with different digital infrastructure ambitions and resource endowments. Sustained progress would demonstrate that Europe can achieve digital sovereignty without compromising the environmental commitments that distinguish its approach to economic development. The next few years will be critical in determining whether EU data centre growth follows a sustainable trajectory or creates resource and infrastructure pressures that undermine both climate goals and community wellbeing.