Data centre electricity demand could nearly triple by 2030, but the report says EU’s overlooked water challenge is the key to scaling AI while protecting grids, communities and climate goals.

BRUSSELS, Belgium – May 27, 2026 – EU’s ambition to lead in artificial intelligence and cloud computing may be less affected by a shortage of chips than by water and energy constraints, according to a new policy paper released today by Grundfos – one of the world’s leading companies in energy-efficient water solutions. The report says data centre expansion is putting growing pressure on EU’s water resources, energy grids and climate goals, and argues that smarter water and cooling policies could turn those constraints into a competitive advantage.

The report, "Scale and Secure: Powering Europe's Digital Sovereignty," warns that electricity demand from EU data centres is likely to grow from 3% of total consumption today to as much as 9% by 2030. Integrated planning and increased speed on supporting policies are urgently needed, the paper states. With contributions from technology leader Alfa Laval and Swedish research Institute RISE, the paper also highlights that this explosive growth is already causing gridlock in major European hubs and adding pressure to decarbonisation efforts.

Inge Delobelle, EVP and CEO for Grundfos’ Industry division: “Efficiency must be the default for data centre growth. Clear and predictable policy frameworks should guide decisions and speed up investment in proven systems that reduce water and energy consumption. That way we support responsible growth that safeguards local resources.”

The Roadmap: Turning Constraints into a Competitive Advantage Instead of treating energy and water constraints as barriers, the paper argues that EU can leverage its position as a global regulatory leader to turn efficiency into a decisive competitive advantage.

The key policy recommendations to achieve this are:

● Integrate Water & Energy Governance: Maintain and further strengthen water use alongside energy efficiency in all performance standards and governance to ensure holistic, system-level efficiency.

● Enforce Transparent Reporting: Mandate public reporting of both power (PUE) and water (WUE) usage to drive market accountability and reward the most efficient operators.

● Align Permitting with Green Technology: Streamline the permitting process for data centres that commit to using best-in-class efficient technologies.

● Support Critical Infrastructure Upgrades: Create targeted financial incentives to support data centre retrofits and the development of reclaimed water and heat reuse infrastructure.

The coming decade will be crucial, and EU must act decisively to stay globally competitive in AI and cloud computing.

Bent Jensen, EVP and divisional CEO for Grundfos Commercial Business Services: “The European challenge is not whether data centres should be built but how they are built and how to operate them efficiently. With clear standards, coordinated planning, and the political will to act, Europe can continue to attract digital investment while reducing pressure on scarce resources and securing its digital sovereignty for the future. This is essential for EU to gain a competitive advantage.”

Sources used in the policy paper

The analysis and conclusions are based on publicly available data and studies, including the International Energy Agency Energy and AI reports, European Commission assessments of data centre energy performance, European Parliament Research Service analysis, McKinsey research on European grid constraints, and UK Government and UNEP studies on water stress, all cited in the paper.

Grundfos

Grundfos pioneers solutions to the world’s water and climate challenges and improves the quality of life for people. As a leading global pump and water solutions company, we promise to respect, protect, and advance the flow of water by providing energy and water efficient solutions and systems for a wide range of applications for water utilities, industries and buildings. For more information, please visit: Grundfos.com