Who owns Europe’s AI future? The battle over data centres

World artificial intelligenceEuropean UniontechnologyTop News Who owns Europe’s AI future? The battle over data centres An Ai (artificial Intelligence) Sign Is Seen At The World Artificial Intelligence Conference (waic) In Shanghai Relevant News Who owns Europe’s AI future? The battle over data centres 14 September 2026 Kremlin defends drone strike near Poland border 14 September 2026 Sweden’s centre-left set for narrow election win 14 September 2026 Theodosis Pipis 14 September 2026 FacebookXWhatsAppEmailPrintViber Europe wants more artificial intelligence. It wants more cloud computing, more digital services and a stronger technology industry capable of competing with the United States and China. However, there is a problem hiding underneath that ambition: all of this technology needs somewhere to run. Across Europe, technology companies are building increasingly large data centres to provide the computing power behind AI and cloud services. The European Commission wants the EU’s data-centre capacity to triple by 2035. At the same time, Brussels is trying to strengthen Europe’s technological sovereignty and reduce its dependence on companies and infrastructure controlled from outside the bloc, such as from the United States and China. Europe’s AI ambitions need more computing power If the continent is going to spend enormous amounts of electricity, land and public resources building the infrastructure of the AI age, who should benefit from it? The debate is already visible in Austria. Near the small town of Kronstorf, Google is building what is expected to become Austria’s first hyperscale data centre. Local activists have objected to the project’s enormous energy requirements and its potential environmental impact according to Politico. The concerns are familiar: how much electricity will it consume? What will happen to water resources? And will local communities receive enough economic benefit in return? Those questions are not unique to Austria. Across Europe, communities are beginning to question whether the rapid construction of data centres is compatible with national energy and environmental goals. Europe’s data-centre boom comes with a cost The concern is understandable. The European Commission estimates that data centres already account for about 2.5% of the EU’s electricity consumption, while demand is expected to grow sharply as computing infrastructure expands. The Commission estimates that installed data-centre capacity could rise from roughly 12 gigawatts in 2025 to around 28 gigawatts by 2030. That does not mean Europe should stop building data centres. Quite the opposite. Europe probably needs many more of them if it wants genuine technological independence. The reason is simple: Europe cannot have technological sovereignty without computing sovereignty. A European company developing an AI model needs computing power. European governments running critical digital services need secure cloud infrastructure. European researchers need access to advanced machines. European manufacturers increasingly depend on AI and cloud services. If that infrastructure is overwhelmingly owned or controlled by companies headquartered elsewhere, Europe’s dependence does not disappear simply because the servers happen to sit inside the EU. The more important question is what Europe builds, where it builds it and who it builds it for. Building European alternatives The EU is already trying to answer that question. Its AI Factories are designed to give European researchers, start-ups and smaller companies access to high-performance computing. The bloc is also pursuing AI Gigafactories, with plans for facilities containing more than 100,000 advanced AI processors. The European Commission says the programme could involve up to €10bn in public funding and unlock at least €20bn in private investment. The significance is not only the amount of money involved. It is the attempt to build computing capacity that is designed around European needs, rather than leaving Europe’s access to advanced computing almost entirely in the hands of foreign technology companies. Brussels is therefore trying to build independence. Its June 2026 technology-sovereignty package links chips, cloud computing, AI, open-source software and energy infrastructure into a broader strategy for reducing Europe’s dependence on external suppliers. Data centres are at the centre of that strategy because they sit between the digital and physical economies. They need enormous quantities of electricity. They require land, water, fibre connections and grid capacity. They can influence local energy markets. And increasingly, they determine who has access to the computing power necessary to develop advanced AI. The backlash however is easy to understand. Data centres consume huge amounts of electricity and water, take up land and can put pressure on local power grids. For many communities, the question is simple: if residents bear the environmental and financial costs, who gets the benefits? Another key concern is if a project receives access to scarce European electricity, land or public incentives, Europe could require stronger commitments in return, such as: investment in additional renewable generation, greater energy efficiency, transparent reporting of water and electricity use, participation in local grid infrastructure and meaningful access for European businesses and researchers. The EU is already beginning to respond. In June, the Commission announced measures to integrate data centres more closely into Europe’s energy system, while increasing attention to energy efficiency and environmental transparency. Its energy strategy calls for data centres to be integrated more closely into the European energy system, while new measures are being developed around energy efficiency and environmental transparency. Europe needs the infrastructure, but it needs to benefit from it Europe needs huge amounts of computing power to compete in AI, but it also needs to make sure that this infrastructure benefits Europeans. By investing in its own data centres, AI factories and energy infrastructure, the EU has an opportunity to build a stronger and more independent digital economy. The challenge now is to make sure that the cost of this expansion, in electricity, water, land and public money, is matched by clear benefits for European businesses, communities and citizens. 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