AI demand is leading to major data center expansions - but do they have the power to fully operate?

Date:
Tue, 11 Nov 2025 10:58:00 +0000

Description:
Two in five data centers could face power constraints by 2027 if they even
get built in the first place.

FULL STORY

Ongoing and evolving AI use has created a surge in demand for data centers, creating worrying sustainability impacts, but new research has revealed we might not even have enough energy to power them in the first place.

New research from Savills notes only 850MW of power has been delivered across the EMEA region in 2025 to date, 11% less than last year.

This is particularly concerning, as IDC research projects AI spending could increase to $144.6 billion by 2030 a four-year compound annual growth rate
of over 30%.

Data centers are facing power supply concerns

Savills notes a 12% rise in live capacity over the past year across
established hubs, like France, Germany, the UK, Ireland and the Netherlands.

EMEA Data Center Advisory Director Cameron Bell projected further upward pressure on pricing throughout the remainder of 2025: The persistent
imbalance between surging demand and restricted supply continues to underpin rental values.

New take-up now stands at 845MW, with around a quarter of take-up now pre-let compared with less than one-fifth three years ago. Occupancy rates also rose
to 91% in Q3 2025, up four percentage points in three years.

Looking ahead, two in five data centers could face power constraints by 2027 per Gartner forecasts, with AI-optimized server power needs expected to hit 500TWh a 2.5x increase compared with 2023.

Companies are also being forced to balance these power concerns with rising construction costs, currently averaging $7.3-13.3 million per megawatt. Labor shortages, land scarcity and supply chain issues were blamed for 17-28% rises in Copenhagen, Stockholm, Warsaw and Vienna.

This could be why non-traditional locations like Portugal (60%), Saudi Arabia (49%), Spain (25%), the UAW (20%) and Sweden (17%) saw the biggest increases
in live capacity compared with the 12% rise saw across established hubs.

Looking ahead, developers have been forging stronger supplier relationships
and exploring markets with more accessible power and land to respond to
ongoing demand.

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Link to news story: https://www.techradar.com/pro/ai-demand-is-leading-to-major-data-center-expans ions-but-do-they-have-the-power-to-fully-operate

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