TL;DR

  • AI-driven growth is reshaping Europe’s data center industry, placing greater demands on power availability, infrastructure design and operational flexibility.
  • Battery energy storage is expanding beyond traditional backup applications to support grid stability, energy management and increasingly dynamic workloads.
  • Rising compute densities are accelerating innovation in cooling technologies while challenging conventional approaches to data center design and efficiency.
  • Europe’s digital infrastructure expansion increasingly depends on coordinated energy planning, connectivity investment and stronger community engagement.

# # #

As artificial intelligence (AI) accelerates demand for digital infrastructure, Europe’s data center industry faces mounting pressure to expand capacity while addressing power constraints, sustainability requirements, and increasingly complex workloads. These challenges were central to discussions at DCD Connect London 2026, held September 15-17, where industry leaders explored the technologies, strategies, and partnerships shaping the next phase of data center development.

Bringing together operators, technology providers, investors, and infrastructure experts, the event highlighted how the industry is adapting to a changing energy landscape. Discussions examined everything from battery storage and advanced cooling to AI-ready facility design, grid modernization, and the growing importance of community acceptance.

Rethinking Power Infrastructure and Energy Storage

Power availability and reliability emerged as major considerations as operators seek to support increasingly energy-intensive AI workloads. With grid connection delays and electricity costs affecting development strategies, the industry is exploring new approaches to energy storage, onsite generation, and grid participation.

The evolving role of battery storage was a key area of discussion with Liz Wallace, Senior Product Manager at ZincFive, among the industry experts examining how Battery Energy Storage Systems (BESS) are moving beyond traditional backup applications. Topics included power quality, peak shaving, load shifting, and demand response, along with opportunities to better manage fluctuating energy requirements.

As data centers become more active participants in the energy ecosystem, storage technologies may offer opportunities to improve operational flexibility and support renewable energy integration. These capabilities are becoming increasingly relevant as operators balance uptime requirements with energy costs and sustainability objectives.

Adapting Infrastructure Design for AI Workloads

The rapid evolution of AI hardware is challenging traditional data center design assumptions. Higher rack densities, changing workload profiles and closer integration between IT and operational technology are creating demand for facilities that can adapt without requiring extensive redesign.

Among the industry leaders addressing these challenges was Ivy Tavershima, Senior Technical Program Manager – AI Delivery at Microsoft, who participated in discussions examining whether standardized facility designs can remain effective as computing requirements continue to change. Topics included modular infrastructure, adaptable power, cooling systems, and the challenge of balancing repeatable designs with workload-specific requirements.

Cooling innovation was another important focus. As operators prepare for higher-density deployments, discussions explored liquid cooling, hybrid thermal architectures, and opportunities to improve efficiency without compromising reliability. The growing complexity of AI infrastructure is reinforcing the need to consider flexibility and long-term operational requirements during the earliest stages of facility planning.

Addressing Europe’s Energy and Connectivity Constraints

Europe’s digital infrastructure expansion is increasingly influenced by where sufficient power and network connectivity can be secured. Traditional data center markets face growing grid and permitting challenges, prompting developers to evaluate emerging regions with more favorable energy conditions.

The evolving relationship between data centers and energy providers was examined by industry experts including Goran Arya, Director, Energy Origination & Structuring, EMEA at Equinix. Discussions addressed grid capacity allocation, demand-response opportunities, and new models for integrating large-scale digital infrastructure into Europe’s electricity systems.

Connectivity investment must also evolve alongside changing development patterns. Joshua Seawell, Director of Product Management at Sumitomo Electric Lightwave, joined discussions exploring how fiber infrastructure, long-haul routes, and metropolitan networks must adapt as data center development expands into new geographic markets. Coordinated planning between energy providers, network operators, and developers will be essential to supporting reliable, high-capacity digital infrastructure.

Building Community Support for Sustainable Growth

Beyond technical and operational challenges, the industry is confronting increased scrutiny surrounding the environmental and economic impacts of data center development. Community concerns about energy consumption, infrastructure demands, and local benefits are influencing project planning and approval processes.

The importance of establishing a social license to operate was explored by industry representatives including Michael Blake, EMEA Community and Workforce Development, Regional Manager – Global Data Centers at Google. Discussions focused on incorporating community value into development strategies, improving public understanding, and engaging local stakeholders before opposition becomes a barrier to progress.

These considerations reinforce the importance of treating community engagement as an integral part of infrastructure development rather than a final step in the approval process. As Europe’s data center footprint expands, transparent communication and measurable community benefits will play an increasingly important role in supporting responsible growth.

Preparing for the Next Phase of Digital Infrastructure

DCD Connect London 2026 highlighted the interconnected challenges facing Europe’s data center industry. AI-driven demand is accelerating infrastructure investment, but the ability to deliver new capacity depends on more than computing technology alone. Energy availability, storage innovation, cooling efficiency, connectivity, and community acceptance are all influencing how and where facilities are developed.

The discussions underscored the need for greater collaboration across the digital infrastructure ecosystem. As operators and technology providers work to meet growing demand, flexible infrastructure strategies, and coordinated planning will remain essential to building resilient, efficient, and sustainable data centers. The industry will have another opportunity to reconnect and continue these important conversations at DCD Connect London 2027, taking place September 14-15, 2027.