Europe: European data center operators raise concern around energy supply
Apr 24, 2023 | Posted by MadalineDunn
Across Europe, data center operators are raising concerns around energy supply availability, a new study by Agrreko has found. The company gathered responses from 700 data center professionals across seven European countries, including the UK, France, and parts of Scandinavia, and found that operators are struggling to source reliable, cost-effective energy, with grid infrastructure leading to increasing uncertainty. Thirty percent of respondents, for example, expressed that their current local grid and energy infrastructure is unable to meet current demand, and projected demand across the next five years.
That said, there was, as to be expected, variability regarding operators' specific concerns. In the UK, energy pricing was more of a concern, whereas elsewhere, in Germany and the Netherlands, for example, the main concerns were access to the grid and the cost of land.
A common theme in the report was that operators are increasingly looking for ways to improve energy efficiency, as well as bolster ESG strategies. Norway was the only country that didn't align with this, a place with already abundant renewable energy sources.
Elsewhere, it was found that companies are increasingly looking at demand-side response (DSR) schemes, which involve customers shifting their consumption based on signal response, to balance the electricity system. Those in France, Germany and the UK were most invested in the use of DSR as a response to rising energy costs.
Speaking about the insufficient grid power, Guido Neijmeijer, European leader of datacenters at Aggreko, said: "Grid limitations are a growing problem for the industry, but particularly in the UK." Neijmeijer pointed to analysts highlighting the national grid's 'fragility' amid the sector's recent growth and said that it's not difficult to imagine a ban similar to the one proposed by Dublin authorities coming into force around the Greater London area where demand for electricity is highest. He said that while this will put a cap on new builds, it will also make things harder for existing data centres to plan effectively.
He added that research shows grid shortcomings are common throughout Europe, and they "lack a clear or immediate fix."
That said, there was, as to be expected, variability regarding operators' specific concerns. In the UK, energy pricing was more of a concern, whereas elsewhere, in Germany and the Netherlands, for example, the main concerns were access to the grid and the cost of land.
A common theme in the report was that operators are increasingly looking for ways to improve energy efficiency, as well as bolster ESG strategies. Norway was the only country that didn't align with this, a place with already abundant renewable energy sources.
Elsewhere, it was found that companies are increasingly looking at demand-side response (DSR) schemes, which involve customers shifting their consumption based on signal response, to balance the electricity system. Those in France, Germany and the UK were most invested in the use of DSR as a response to rising energy costs.
Speaking about the insufficient grid power, Guido Neijmeijer, European leader of datacenters at Aggreko, said: "Grid limitations are a growing problem for the industry, but particularly in the UK." Neijmeijer pointed to analysts highlighting the national grid's 'fragility' amid the sector's recent growth and said that it's not difficult to imagine a ban similar to the one proposed by Dublin authorities coming into force around the Greater London area where demand for electricity is highest. He said that while this will put a cap on new builds, it will also make things harder for existing data centres to plan effectively.
He added that research shows grid shortcomings are common throughout Europe, and they "lack a clear or immediate fix."
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