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A report warns that poor grid planning could cause data centres to be located in different parts of Europe.

A report by the energy think tank Ember on Thursday showed that Europe's top data centres are facing a major change as developers will move to wherever connection times can be shortened.

The data centre construction boom has been a phenomenon in recent years, as tech companies compete to offer the best artificial intelligence (AI), which relies on a newer generation of power-hungry servers.

The report stated that this could lead to a geographic shift in investments in Europe, as developers search for places with better power access and shorter lead-times.

The report stated that by 2035, half the data centres in Europe could be located outside of the main hubs Frankfurt am Main, London, Amsterdam Paris and Dublin.

It said that this could lead to the loss of billions in investment from congested countries as data centres in Germany contributed 10,4 billion euros ($12billion) in GDP by 2024, which should double by 2029.

The report stated that only France is expected to continue data centre investments as grid constraints remain relatively low.

The report stated that it can take 7-10 years to connect a new data center to the grid at legacy hubs, and some projects could face delays as long as 13 years.

It said that the wait time in Italy is only three years.

"Grids ultimately decide where investments go... they are now effectively an instrument to attract investment," Elisabeth Cremona Senior Energy Analyst, Ember.

She said that in order to make other projects a reality, Europe must now take grids into consideration and invest in this infrastructure.

She said that the process is similar for any industry looking to electrify or is new.

By 2030, the electricity consumption of data centres is expected to triple in Sweden, Norway, and Denmark. Austria, Greece Finland, Hungary Italy Portugal Slovakia, Portugal, Slovakia, and Slovakia are all expected to see a three- to fivefold increase in data centre consumption by 2035, compared to the year 2024. ($1 = 0.8692 euros)

(source: Reuters)