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Nachrichten, Termine, Experten
Europe aims to compete in the global AI race, but rising electricity demand from data centers threatens to outpace current planning, putting climate goals, economic growth, and AI competitiveness at risk. Without aligning energy supply with digital infrastructure expansion, Europe could face a costly trilemma that undermines its strategic ambitions.
A new Kiel Policy Brief (https://www.kielinstitut.de/publications/running-into-a-debacle-the-mismatch-bet...) by Matilde Ciani (https://www.kielinstitut.de/experts/matilde-ciani/), researcher in the macrofinance research group at the Kiel Institute, analyzes the EU’s “AI Continent Action Plan,” which aims to double data center capacity by 2030, and its implications for electricity demand. Notably, even if the plan is fully implemented, Europe is likely to fall further behind its main competitors, the United States and China.
The analysis projects that the data centers associated with this expansion could consume between 98.5 and 168 TWh of electricity by 2030—roughly equivalent to Poland’s total electricity demand in 2024 and up to 5 percent of overall EU consumption. “AI policy cannot be separated from energy policy,” notes Ciani. “Europe is planning ambitious digital infrastructure without ensuring that the electricity system can support it.”
The Kiel Policy Brief warns that meeting this demand would require other sectors to remain largely static—unlikely given growth in electrification of housing and transport. Without action, the EU risks a trilemma: relying on fossil energy, limiting economic growth, or falling behind in AI.
Ciani recommends systematically linking data center expansion to additional low-carbon electricity supply, strengthening coordination between energy and digital planning, and leveraging public-private partnerships to secure renewable generation alongside new AI infrastructure.
“Europe’s ambition must be matched by realistic planning,” Ciani concludes. “Aligning AI development with energy supply is the decisive condition for remaining competitive while achieving net-zero goals.”
Read Kiel Policy Brief now: Running into a debacle: The mismatch between the EU’s AI ambition and its energy planning/https://www.kielinstitut.de/publications/running-into-a-debacle-the-mismatch-bet...
Media Contact:
Elisabeth Radke
Head of Outreach
T +49 431 8814-598
elisabeth.radke@kielinstitut.de
Kiel Institute for the World Economy
Kiel Office
Kiellinie 66
24105 Kiel
Germany
Berlin Office
Chausseestraße 111
10115 Berlin
Germany
Contact
+49 431 8814-1
www.kielinstitut.de
Matilde Ciani
Kiel Institute Researcher
matilde.ciani@kielinstitut.de
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