Europe faces mounting energy challenge from AI growth
5 November 2025
Europe could face increasing pressure on its electricity networks as artificial intelligence expands across the continent, according to new research by Schneider Electric.
The study, AI & Energy in Europe, warns that without swift, coordinated investment in grid infrastructure, smarter energy management and closer cooperation between sectors, rising AI-related demand could lead to an energy shortfall that risks slowing innovation and economic growth.
The report models four scenarios looking at the expansion of data center capacity and expected energy demand, based on different regulatory regimes. It shows that by 2030, European AI electricity consumption could follow dramatically different paths:
• 45 TWh under constrained development
• 90 TWh through coordinated sustainable development
• 145 TWh under unchecked expansion
• a volatile trajectory oscillating between crisis and recovery.
Researchers found that achieving a sustainable energy trajectory for AI depends on joint action across three areas: strengthening electricity systems ahead of rising demand, implementing adaptive regulations that can respond to real-time needs, and accelerating decarbonisation through cleaner, more flexible grids.
Rémi Paccou, Director of Sustainability Research at Schneider Electric and lead author of the study, says:
“AI’s energy trajectory is not inevitable – it depends on the choices we make today on three pillars: technology, regulation, and infrastructure. This research shows the importance of coupling AI technology development with electricity infrastructure expansion and adaptive regulation that responds to real-world conditions. Sustainable AI in Europe is achievable, but only through deliberate design – and the window to reach it is narrowing without conscious action across the continent.”
The report highlights striking regional differences in the carbon intensity of electricity generation—about 20 grams of CO₂ per kilowatt-hour in France compared with roughly 300 grams in Ireland and the Netherlands. It also notes that while new data centres can be constructed in as little as two to three years, grid reinforcements may take five to ten, underscoring the urgency of early action.
In Ireland, data centres accounted for approximately 21% of national electricity use in 2023, a share projected to rise to 31% by 2030—the highest in Europe. Schneider Electric says the next two years will be critical for policymakers to adapt regulations and maintain Europe’s competitiveness in the global AI landscape.
