- Microgrids may unlock faster data centre growth in Europe by easing grid constraints and cutting emissions.
- Study finds AI-driven demand for electricity could rise 250% by 2030, making flexible power sources essential.
What happened: Research from Wärtsilä and AVK highlights microgrids’ potential amid Europe’s power and grid delays
A joint paper by Wärtsilä and AVK, titled Data centre dispatchable capacity: a major opportunity for Europe’s energy transition, assesses how microgrids—systems combining renewables, energy storage, and grid-balancing engines—can reduce emissions, wasted energy, and the need for costly grid infrastructure. The research calculates that powering data centres with a microgrid design yields lower levelised costs of electricity, particularly comparing scenarios for 80 MW data centres, according to Capacity Media.
The analysts note an urgent driver: demand from AI and related cloud computing is putting pressure on grid-connection timelines, which in some cases extend up to a decade. Anders Lindberg, president of Wärtsilä Energy, warns that grid operators are “struggling with rising costs and up to a 10-year waiting time for a grid connection.”
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Why it is important
The market for data centres in Europe has to deal with two major obstacles: a slow development of infrastructure and an explosive increase in power demand. In an absence of adjustable and decentralised power solutions, delays and outages might spike if AI-driven usage evolves as predicted. Operators might minimise those risks with assistance of microgrids, especially around areas with prohibitive or delayed grid connections.
EU energy and climate policies involve a higher priority on minimising carbon emissions while encouraging energy flexibility from a sustainability and regulatory viewpoint. Policymakers, equipment suppliers, and investors may gain information about useful alternatives for conventional grid reliance from real-world modelling such as that produced by AVK/Wärtsilä. Microgrid adoption could aid with accomplishing goals under agreements like the EU Green Deal. Aligning permitting requirements, acquiring loans, and guaranteeing the dependability of renewable components and storage are all crucial for success. While laggards may face difficulty from shifting energy supplies and growing expenditures, operators who adopt microgrid strategies may gain a competitive edge.
