- European data center supply fails to meet growing demand for AI, report says
- The problem is power density and inadequate cooling systems
- Some countries adapt better to new campuses than others
Only one in five data centers in Europe and the Middle East is AI-ready, and although AI readiness is expected to reach 70% by 2030, up from 20% today, demand still appears to outstrip supply, new research claims.
BCS data found that many existing sites were built for traditional cloud workloads, therefore are not ready to handle high-density GPU racks, making previous generation data centers unsuitable for future workloads unless they are upgraded.
The report blamed insufficient power density and cooling systems that are not designed for sustained AI-induced heat loads. And while upgrades are off the table for many and other new sites are stagnant, 93% of industry experts surveyed expect demand to increase in the next 12 months (78% blame AI).
European data centers need major upgrades to handle AI
Some of Europe’s main challenges holding back the construction of new data centers include land shortages, grid connection delays, materials shortages, and skilled labor shortages.
And it’s not going to change: 86% agree that supply chain volatility is now structural, not temporary.
“The assumption that capacity can continue to increase simply by adding more sites and more power will not hold in 2026,” wrote the company’s CGO, Alexandra Thorer.
BCS also noted an increased focus on sustainability: 89% of respondents expect the majority (90%) of data center energy to come from renewables by 2035. Energy availability has now become one of the main factors when choosing a site.
BCS noted that while countries such as Germany, Austria, Switzerland and France are planning strong growth, it is actually other regions that could hold the key. The report highlighted favorable climate conditions in the Nordic countries for reduced cooling needs and increased land availability in the Middle East.
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