How data centers actively support the energy transition

"We are at a turning point," Fuhrmann said in her speech. "Data centers are no longer just energy consumers. They are evolving into active energy hubs, and that changes everything."

An industry in transition

The German Datacenter Conference is considered one of the most important industry gatherings for data center operators, energy suppliers, technology providers and representatives from politics and administration. Discussions focus on topics such as grid connections, land availability, decarbonization and security of supply.

The electricity demand of data centers in Europe has risen by around 70 per cent over the past five years. While total electricity consumption in Europe has fallen slightly since 2019, data centers are already responsible for more than a quarter of the additional energy demand by 2029. By the end of the decade, their consumption could be between 1,000 and 1,500 terawatt hours. This corresponds to six to nine per cent of global electricity demand.

From consumer to energy hub

For a long time, data centers were considered purely electricity consumers. But this role is changing. Operators are increasingly investing in renewable energy generation, battery storage, flexible load management and heat recovery.

"We can no longer think of data centers as passive consumers," explained Fuhrmann. "They are becoming energy players that not only consume, but also produce, store and provide flexibility."

One example is the partnership with Prometheus Hyperscale in the USA, which combines battery storage and renewable energies with data center operations. And hyperscalers are driving the change:

Google has just extended its partnership with Engie in Germany in the area of "24/7 Carbon-Free Energy (CFE)" until 2030, and Amazon is sourcing energy from the Moray West offshore wind farm in Scotland. In Berlin, a new urban district with 10,000 apartments is to be heated with waste heat from an NTT data center.

24/7 carbon-free power as a new paradigm

At the heart of many strategies is the principle of "24/7 Carbon-Free Power". This is not about certificates, but about real-time allocation.

• Matching consumption with renewable generation hour by hour.
• Using battery energy storage systems (BESS) to smooth out intermittency.
• Deploying advanced forecasting and load management tools to optimize operations.
• And integrating district energy networks and waste heat reuse to support urban sustainability.

" This is a radical shift from consuming energy to contributing to the energy ecosystem.", said Fuhrmann.

Challenges: grids, prices, risks

The transition poses challenges. While a data center can be built in two to three years, grid expansion often takes a decade. Volatile energy prices and regulatory uncertainties add to the pressure.

In Dublin, there is a de facto connection moratorium until 2028: new projects must provide their own power generation or storage. Similar bottlenecks are also looming in Germany if expansion is not accelerated.

Partnerships as a factor for success

Despite these hurdles, solutions are emerging.

• Growth is increasingly shifting to secondary markets with better availability of space and renewables, such as Berlin, Hamburg and the Rhineland.
• Grid-ready sites are emerging in France.
• Demand flexibility: The power sector increasingly values datacenter flexibility, shifting AI workloads, using batteries, and responding to price signals.

"Strategic partnerships between utilities, local authorities and technology companies is crucial," emphasized Fuhrmann. "This is the only way to speed up approval processes and overcome grid bottlenecks."

Four trends until 2026

1. Growing energy demand due to AI applications and high-performance computing
2. Increasing regulatory pressure due to the Energy Efficiency Act and the Climate Neutral Data Center Pact
3. On-site generation with renewable energies and storage solutions as standard
4. Shift in growth to secondary markets with better infrastructure

Conclusion: Data centers as drivers of the energy transition

Data centers can evolve from electricity consumers to active drivers of the energy transition.

"If we design data centers as flexible, resilient and low-carbon energy centers, we can combine growth with climate protection, security of supply and price stability," Fuhrmann summarized.