Electricity. Water. Gas. For decades, these have been the essential utilities so fundamental that no government leaves them entirely to market forces. Today, data infrastructure is arguably the fourth. And yet, while governments have long-standing strategies for managing and maximising the other three, most are still approaching data centre development reactively, responding to applications rather than shaping outcomes. That needs to change.
Data centres are not a future consideration. European data centres consumed an estimated 96 TWh of electricity in 2024. By 2035, that figure is projected to reach 236 TWh, a rise of nearly 150% in a single decade, becoming one of the biggest new sources of power demand on the continent. Countries that are passive to this growth will find themselves reacting to decisions already made by others, on terms they had no hand in shaping.
The substantial economic potential
The European data centre market was valued at $47 billion in 2024 and is projected to reach $97 billion by 2030. In Germany, the sector contributed an estimated €10.4 billion to GDP in 2024 yet is expected to more than double to €23 billion by 2029. In the Netherlands, data centres already account for 20% of all foreign direct investment, the largest single sector for FDI in the country.
Done well, a strategy can direct this economic activity to the regions that need it most, not just the cities with the most obvious land and power availability.
Beyond investment figures, data centres can be one of the most powerful levers for accelerating renewable energy deployment a country has. They are large, long-term, creditworthy off takers, exactly the kind of customer that can make large renewable energy projects financially viable. A government that understands this can use its data centre strategy to actively drive clean energy investment, co-locating demand with renewable generation and using data centre demand and investment to support grid reinforcement that benefits entire regions.
The challenge of grid constraints
Across Europe's traditional FLAP-D data centre markets (Frankfurt, London, Amsterdam, Paris and Dublin) grid congestion has become the defining constraint. In 2023, data centres consumed between 33% and 42% of all electricity in Amsterdam, London and Frankfurt, and nearly 80% in Dublin. Ireland imposed a moratorium on new connections. Amsterdam followed. Investment is now moving to countries with better grid availability, which are projected to grow at nearly double the rate of the traditional hubs between now and 2030. Countries that can halve connection times are set to attract around 20% more data centre growth.
A strategy that confronts the challenge of grid constraints, and creates a framework that aligns planning, grid access, zoning, and fiscal frameworks into a single coherent position, can turn this potential constraint into a genuine competitive advantage.
Benefits for communities.
One aspect of data centre development that doesn't get enough honest attention is community pushback. When a large development arrives with significant impacts on local infrastructure but offers little in return by way of local jobs, tax revenue, or services, opposition is a rational response. In the US last year, 25 data centre projects were cancelled or withdrawn in the face of community opposition. That's a significant loss for developers, investors, and governments.
A national strategy that requires developments to demonstrate genuine local benefit, that directs facilities to appropriate zones rather than wherever planning resistance is weakest, and that builds community engagement into the process from the start, reduces that risk substantially. This is better for communities, better for developers who need planning certainty, and better for governments that want the economic benefits without the political fallout.
The cross-government collaboration requirement
A strategy that sits in one department will ultimately fail. Data centre development touches energy policy, planning, economic development, digital infrastructure, skills, and environmental regulation. Without genuine coordination across those areas, you end up with a document that has teeth on paper, but no bite in practice.
The people shaping that strategy also matter enormously. They need to understand the full lifecycle of a data centre; from site selection and planning, through grid connection and construction, to long-term operations and community impact. This is far more complex than the financials on a spreadsheet suggest, and advisors who only understand part of that picture will produce a strategy with blind spots. The most effective strategies are built by people who understand the sector deeply but owe nothing to any single player in it.
Ultimately, uncertainty is the enemy of capital.
• Developers need to know where they can build, how quickly they can connect to the grid, and what will be expected of them when they get there.
• Communities need to know that development will bring genuine, lasting benefit, not just construction noise and higher electricity bills.
• Governments need to know that the infrastructure landing in their country is aligned with their economic, environmental, and social objectives.
A well-constructed national data centre strategy answers all three of those questions before they become problems.
