European data center growth: Power, sustainability, and regulation

Data center projects in Europe are larger than ever and need to be delivered faster than ever, while governments and communities focus more on sustainability. Nicolas Walker and Tallat Hussain explain why power, sustainability, and regulation are no longer separate questions.

Access to power determines where you can build, and sustainability requirements determine how you design and operate. There is no single European data center sustainability law, but a layered framework of European and national rules, moving from transparency to performance. The Energy Efficiency Directive now requires data centers above one megawatt to put heat recovery in place, and in France, planning permission can be refused where access to resources such as water is at risk.

Sustainability can pull projects toward places with low-carbon power, grid headroom, and customers for heat, and district heating networks can use server heat to warm homes and businesses. Tallat’s lesson for investors is that land acquired is not the same as power secured, and neither is the same as bankable. Nicolas recommends designing in compliance from day one and choosing the site where electricity, fiber, water, heat reuse, and community benefits can all be delivered at roughly the same time.