Data center boom across Europe could well lead to higher electricity prices, report warns
Data centers are set to account for a growing proportion of Europe's energy consumption, so who will foot the bill?
A new report warns that Europe's expanding data center industry could lead to increased electricity prices across the continent. As of 2025, data centers accounted for approximately 2.5% of Europe's total electricity consumption, but by 2035, this could surge to 5.7%. The most affected regions include the Northlands, where prices may rise by 17%, and Ireland, where prices could climb as much as 30%.
Moor's report explains that while data centers directly pay for upgrades to their connections, grid operators typically cover the expenses for enhancing the broader network. These additional costs, coupled with supply-demand imbalances, could force end-users to bear the burden of higher energy prices.
Moor's analysis also suggests that the ongoing AI boom could potentially offset some of the price hikes by creating new growth opportunities for utility companies. These companies may invest in clean energy generation and transmission infrastructure, generating extra revenue and profits. However, Moody's anticipates that government intervention may be necessary to prevent consumers from bearing the brunt of the most severe price increases.
Possible solutions include tax cuts, price caps, and stricter rules governing data center connections. With the U.S. recently launching a Ratepayer Protection Pledge, it remains to be seen whether Europe will adopt similar measures and how its nations will protect their citizens from rising energy costs.
Written by urgent.news from TechRadar's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
