European Data Centers' Rush for Land and Energy

A data center is a large group of networked computers typically used by organizations for the remote storage, processing, or distribution of vast amounts of data. They are energy guzzlers: in 2022, the European Union’s 1,240 data centers consumed just under 100 TWh, equal to 4% of the continent’s power demand. According to the think tank Ember, their electricity demand is projected to grow from 96 TWh in 2024 to 168 TWh by 2030 and 236 TWh by 2035—an increase of nearly 150% over the next decade. In Italy, requests for connection to the high-voltage energy grid topped 55 GW, roughly 40% of the country’s total electrical output. Concern over the sustainability of local grids is rising.

However, our investigation reveals that this exponential growth does not only pose a threat to European grids, but is instead fuelling speculation in the land market, with land prices skyrocketing in the Milan area.

In 2023, the European Commission introduced a directive requiring all data centers with a power capacity above 500 kW to disclose their energy consumption. But civil society organisations criticise the secrecy surrounding such data, which makes it difficult to measure the impact of the industry. They point to the significant additional energy demands at a time when the continent must decarbonise its power grids, as fast as possible, to deliver on key climate commitments.

Public authorities urgently need to draft comprehensive regulations for the sector. Germany offers one of the most advanced examples when it comes to enacting regulation. In Frankfurt, grid connection slots have become scarce. Due to their purchasing power in terms of land use, data center operators have already driven other businesses out of the city. To curb this, the Frankfurt city government recently began allowing the establishment of new data centers only on specially designated plots of land.

Image: Studio Figure, Cornaredo (Milan) 2025