Europe Does Not Need to Copy the United States: The Data Centers of the Future Will Be Built in Europe
This week, the European Commission launched a package of measures aimed at reducing Europe’s dependence on Chinese and, in particular, American technology. Europe rightly recognises that cloud computing, artificial intelligence and digital sovereignty are impossible without sufficient data center capacity. Data centers are far more than supporting infrastructure; they are a fundamental building block of tomorrow’s digital economy. It is essential that this development goes hand in hand with sustainable energy supply, adequate grid capacity and a strong focus on European digital autonomy. Data Centre Acceleration Zones, specifically designed for European data center operators, could help accelerate investment and provide greater predictability for future projects.
Over the coming years, Europe’s data center capacity is expected to triple. Yet this ambition faces several significant challenges. Data centers require electricity. The International Energy Agency (IEA) predicts that electricity consumption by data centers will double by 2030, reaching approximately 945 terawatt-hours per year. To put that into perspective, this exceeds the total annual electricity consumption of Japan. Beyond electricity generation itself, the transmission and distribution of power present an equally formidable challenge. In Flanders, for example, the electricity grid is already struggling to connect all businesses seeking access to the network.
There is also the persistent misconception that data centers require vast quantities of water to cool their servers. In reality, that is far from universally true. Europe certainly does not have an abundance of water resources, and Flanders even less so. Then there is the issue of increasingly scarce space.
If we continue to work in the same way we do today, Europe will struggle to achieve its ambitions.
Data centers are still often perceived as energy-intensive facilities. That perception is becoming increasingly outdated. Modern data centers are rapidly becoming more sustainable and energy-efficient. If Europe genuinely wishes to achieve digital independence, it will need more data centers, not fewer. However, these must be a new generation of facilities capable of producing their own renewable energy and operating with significantly greater efficiency.
At LCL, we have already demonstrated that closed-loop water systems can cool and reuse heated water efficiently. Through the Climate Neutral Data Centre Pact, European data center operators have proposed the introduction of a WUEmax (Water Usage Effectiveness) threshold, establishing a cap on water consumption per kilowatt-hour of electricity used. In addition, the European Union’s Data Centre Labeling Scheme, which sets highly ambitious targets for water efficiency, will further encourage operators to address this issue proactively.
Data centers enable artificial intelligence systems to operate, but AI can also help data centers operate more efficiently. By training AI models on energy-sector data, it becomes possible to develop algorithms that optimise electricity grids and help alleviate grid congestion.
At the same time, governments must play their part in accelerating the energy transition. In Flanders specifically, adequate funding for grid operators such as Elia and Fluvius is essential. They must have the financial resources required to deliver the infrastructure upgrades that this transition demands. Why should permitting procedures for critical utility infrastructure not be streamlined? Without such measures, how can Europe hope to match the pace of development seen elsewhere in the world?
Europe has already missed several major technological transformations. Too often, European investment in technology has flowed directly towards large American technology companies.
Today, however, Europe has an opportunity to strengthen its position in the global digital race. Rather than competing through sheer scale and resource consumption, Europe can lead through innovation and efficiency. Against the backdrop of the energy- and water-intensive computing power often associated with American hyperscale facilities, Europe has a unique opportunity to pioneer a new generation of sustainable, energy-efficient data centers. The real strategic challenge is not whether demand for capacity will increase — it almost certainly will — but whether Europe can secure access to sufficient energy and establish a strong position alongside hyperscalers in an AI-driven market. Those are the two issues that will define success between now and 2035.
Across the Atlantic, the debate surrounding the impact of data centers on climate change and energy systems is becoming increasingly intense. If Europe succeeds in developing a new generation of innovative, energy-efficient data centers, who is to say that these solutions and services could not ultimately become an export opportunity in their own right?
In doing so, Europe would achieve far more than digital sovereignty. It would reverse the current dynamic. We would no longer be the followers; we would become the leaders. Instead of paying for American or Chinese technology, we would create value through European technology.
Laurens Van Reijen is the founder and CEO of LCL with five specialized data centers located in Diegem, Aalst, Antwerp, Gembloux and Huizingen.He actively advocates for green technology in the IT sector. Under his leadership, LCL invests in independent renewable energy infrastructure, such as multi-million euro wind turbine projects and community-focused agricultural rooftop solar farms.
