Data centres that process large amounts of digital information are fundamental to the vast array of online activities that define modern life, from streaming television shows to managing critical business operations. As our reliance on digital services grows, so does the need for data centres.
Global usage of these centres is doubling nearly every five years. This surge presents challenges, because data centres consume a lot of electricity. The European Commission projects that energy use in data centres in the European Union will rise from 2.7% of total energy demand in 2018 to 3.2% by 2030. This could have a big environmental impact.
Other issues are data rights and the protection of personal information, especially given that the technology is largely dominated by companies outside Europe. It is important to develop data centres in Europe and align with the broader EU Digital Strategy.
EIB Advisory, with funding from the InvestEU Advisory Hub, has made it a priority to study this sector and explore the financial structures and macroeconomic impacts of data centres across the European Union. This research studies data centres’ capacities, identifies areas that need more investment and outlines regulatory issues in different regions. This information is valuable for the European Investment Bank’s decision-making in this expanding sector.
The research explores several important areas of the digital economy. It identifies where infrastructure is lacking and what investments are needed across Europe, with the goal of supporting economic growth and control over data. It examines the key factors influencing the location of data centres, such as their proximity to major markets and access to reliable telecommunications and power networks.
It is also important to understand the parties involved in the development of centres, including landowners, contractors, energy suppliers and IT operators. The project studies how collaboration can lead to better outcomes.
The research outlines how long it takes to develop data centres, highlighting the various phases, from finding land and obtaining permits to connecting to the power grid. Each phase has unique challenges and requires special planning.
To complement this research, two web seminars were held on the economic and financial dynamics of data centres. The first focused on financing structures through case studies on debt financing, outlining how this funding helps critical infrastructure. The second explored policy, environmental considerations and technical trends, discussing how to align data centre development with sustainability goals. The proper development of data centres is essential for Europe’s successful digital future.
