Europe told to cool its datacenter boom before water and power run short

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Europe told to cool its datacenter boom before water and power run short

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Europe told to cool its datacenter boom before water and power run short

Get the balance right, Grundfos says, and the region will be a shining example of how to do it without sacrificing the environment

Dan Robinson

Dan<br>Robinson

Published<br>thu 28 May 2026 // 16:45 UTC

Europe needs a policy framework that integrates water and<br>energy efficiency if it wants to keep growing datacenter capacity to support<br>its AI and cloud computing ambitions.<br>This is the argument in a report, "Scale and Secure: Powering<br>Europe's Digital Sovereignty," which asserts that progress will depend not so much on access to the right silicon as on water and energy constraints.<br>Grundfos, the Danish firm behind the report, describes itself as a provider of energy-efficient water solutions so has some skin in this game.

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Datacenters are becoming strategic infrastructure, it says, but their development intersects with energy security, water<br>resilience, industrial policy, urban planning, and technological sovereignty concerns.

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According to the report, the EU-wide server farm IT load is<br>about 10 GW today, and is expected to rise to 35 GW by 2030 – just four years<br>away. These facilities account for about 3 percent of all electricity consumption<br>now, but this is projected to hit 7-9 percent by the end of the decade.<br>Water and energy are intertwined<br>in cooling systems. Grundfos claims that cooling infrastructure accounts<br>for a substantial share of a datacenter's resource use, representing about 38<br>percent of total electricity consumption in an average facility, while water<br>demand in large hyperscale facilities can reach 11,356 to 18,927 cubic meters per day – enough for up to 155,000 EU households.<br>Rapid growth in bit barns is placing increased pressure on energy<br>systems, water resources and local infrastructure, the report notes. Without<br>careful coordination, inefficient or poorly sited facilities risk exacerbating these<br>problems and triggering public opposition.

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On the brighter side, the report posits that if Europe<br>can get the balance right, it will not only be able to support the advances<br>needed to drive competitiveness, but also position the EU as a global benchmark<br>for how digital infrastructure can coexist with the natural environment.<br>To achieve this, recommendations include integrating water and energy efficiency into datacenter<br>governance frameworks, and standardized reporting of environmental performance to<br>inform policy oversight and market accountability.<br>The EU may have a fight on its hands here, of course. Lobbying<br>groups such as the Climate Neutral Data Centre Pact (CNDCP or the Pact) have<br>already expressed displeasure at proposed standards for efficiency in datacenters,<br>while the Cloud Infrastructure Service Providers in Europe (CISPE) tried to pre-empt<br>the EU's Water Resilience Strategy with recommendations of its own.<br>Grundfos advises regulators to integrate water efficiency and cooling design requirements directly into<br>planning approvals for new facilities and any large-scale expansions to encourage<br>adoption of efficient cooling technologies.<br>It also advocates investment incentives from governments such<br>as tax credits, green financing mechanisms, and grant programs for technologies<br>that demonstrably reduce energy and water consumption.

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Integration between server<br>halls and district heating networks is another aspect worth consideration, the report adds. Realizing the potential of excess heat<br>reuse depends less on technical feasibility than on institutional and contractual alignment, with the main barrier being negotiations between datacenter operators, district heating utilities, and municipalities.<br>"Efficiency must be the default for datacenter growth," commented<br>Inge Delobelle, CEO of Grundfos' Industry division.<br>"Clear and predictable policy frameworks should guide<br>decisions and speed up investment in proven systems that reduce water and<br>energy consumption. That way, we support responsible growth that safeguards<br>local resources." ®

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Europe told to cool its datacenter boom before water and power run short

Get the balance right, Grundfos says, and the region will be a shining example of how to do it without sacrificing the environment

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