Datacenters' energy use grows rapidly

Datacenters could consume up to 17% of the Netherlands' and 30% of Ireland's electricity by 2035, according to a Moody's study cited by The Register. In 2025, these facilities accounted for about 2.5% of electricity use in most major European countries.

Ireland’s datacenter growth is especially fast

Ireland’s datacenters already consumed 21% of the country’s electricity in 2023, surpassing urban households, which used 18%. This share had risen sharply from 5% in 2015 to 23% in 2025, highlighting the rapid expansion of the sector.

EU plans to expand datacenter capacity

The European Union aims to more than triple its datacenter capacity within five to seven years, with new sites planned in the Nordic countries and southern Europe. This expansion will require more electricity and the expansion of power networks to support the increased demand.

Network operators face financial strain

Transmission network operators—responsible for high-voltage electricity lines—will face short-term financial pressure due to the need for infrastructure upgrades. This pressure is greater than for distribution networks, as datacenter operators typically fund their own connections to the grid.

Energy costs may rise for consumers

Electric companies are building datacenters on former fossil fuel sites and partnering with developers to create new facilities. These costs, combined with supply and demand imbalances, could raise energy prices. Some governments are exploring tax cuts or subsidies to ease the burden on consumers.

Regulators and governments act to control growth

In Ireland, the CRU has replaced its moratorium on new datacenter connections with rules requiring projects of 10 MVA or more to provide on-site or nearby renewable energy or storage. In the United States, the Ratepayer Protection Pledge aims to prevent electricity costs from rising for citizens. Moody's expects similar measures to spread across Europe if current trends continue.