The energy appetite of Europe’s data centers could surge threefold by 2030, largely driven by the widespread integration of artificial intelligence technologies. According to a recent McKinsey report, the expansion of AI solutions is significantly impacting energy demands, with data center power consumption potentially reaching 150 terawatt-hours (TWh), up from the current 62TWh.

This growth raises the alarm on energy infrastructure demands, as data centers might consume up to 5% of Europe’s electricity. Experts argue facilities will need around 25GW of additional power, predominantly from renewable sources, to sustain this development.

Despite the challenge of achieving net-zero emissions by 2030, some believe AI could aid in tackling climate change. Former Google CEO Eric Schmidt suggests that the AI revolution offers one of the best chances to address greenhouse gas emissions.

However, renewable energy offsets currently have a limited long-term impact on reducing emissions, according to McKinsey. The consultancy highlights colocating data centers near renewable energy sources as one potential solution, especially as AI workloads shift towards inference, requiring reduced latency and proximity to population centers.

The push for sustainability is leading to discussions around innovative energy solutions, such as small modular reactors and other onsite power generation technologies. Although no commercial units have been deployed yet, they represent a more environmentally friendly energy option compared to traditional methods like diesel generators.

Amid these changes, McKinsey’s analysis also forecasts a potential slowdown in overall European energy demand growth, with efficiency gains and economic shifts playing a role in offsetting increased energy usage.