Note: Single-source report; awaiting corroboration.
The International Energy Agency projects electricity consumption by data centres will rise from 485 terawatt-hours (TWh) in 2025 to 950 TWh by 2030, about three percent of global demand. In contrast, investment in data centre infrastructure is forecasted to reach $1.8 trillion per year by 2050, doubling from $800 billion in 2026, indicating slower growth compared to electricity consumption.
The United Nations Economic Commission for Europe (UNECE) warns that data centres and other energy-intensive facilities are expanding faster than the power grids needed to support them. While data centres may be built and connected within two to five years, upgrading transmission and grid infrastructure can take more than ten years due to planning and approval delays. This mismatch may strain electricity systems, resulting in voltage fluctuations and possible cascading failures, especially for grids reliant on renewables that cannot quickly adjust to demand spikes.
Some countries have started mitigating risks. Ireland has restricted data centre connections in Dublin, and the Netherlands has limited new data centre locations to prevent overloading their electricity networks.
A key unresolved issue is the allocation of costs for grid upgrades needed to support large data centres. UNECE notes the lack of a consistent framework for sharing expenses among data centre developers, electricity providers, and consumers, potentially delaying vital investments.
Regulatory gaps remain regarding optimal data centre locations. Clusters of power-intensive facilities often form in areas with advantageous connectivity and regulations, which can overload local grids. While environmental regulations are expanding to cover water use, emissions, and local resource impacts, these remain fragmented. Additionally, regulators frequently lack detailed, real-time information on data centre electricity use, complicating management of their impact on power systems.