McKinsey estimates that the electricity load demand for these infrastructures, especially due to AI, will increase from the current 10 GW to 35 GW by 2030. Additionally, electricity demand will rise from 62 to 150 TWh
A response requested from ChatGPT requires up to 10 times more electricity than a Google search. For this reason, the rapid spread of artificial intelligence (AI) and its increasingly extensive applications have become major drivers of energy consumption, frequently scrutinized by industry analysts in recent years. Currently, between AI applications and model training, this technology accounts for 10-20% of the energy demand of data centers.
The evolution of data center energy demand: +85 TWh in Europe by 2030
What about the future? What is the trajectory of data center electricity consumption? Globally, a recent study by Goldman Sachs estimated a 160% increase by 2030, thus raising data centers’ share of global electricity consumption from 1-2% to 3-4%. Meanwhile, a new McKinsey report, released on October 23, forecasts the growth curve of data center energy demand in Europe.
According to the consulting firm, demand in Europe is expected to grow much faster than the global average—potentially tripling. Data centers in Europe—defined as the European Union, Norway, Switzerland, and the United Kingdom—currently require around 10 GW, but the electricity load demand for these infrastructures is projected to reach up to 35 GW, representing an annual growth rate of 20%. Energy demand in European data centers will rise from 62 terawatt-hours (TWh) per year to 150 TWh.
To meet this new load demand, McKinsey suggests that investments exceeding $250-300 billion will be needed in data center infrastructure, excluding those required to enhance power generation capacity.
“This increase will be one of the primary short-term growth drivers for energy demand in Europe, with data centers projected to account for approximately 5% of total European energy consumption within the next six years (compared to around 2% today),” the report notes.
This factor has been somewhat sidelined compared to the rise in electricity demand tied to the growth of electric vehicles, heat pumps, and electrolyzers. However, it is no less impactful. Demand from data centers is “immediate and substantial,” McKinsey emphasizes, adding that “data center load could account for 15-25% of all new net demand added in Europe up to 2030.”
