Data Centres and the Power System Trends and Challenges

This report examines the evolving role of data centres within the European power system, highlighting their increasing significance as electricity loads. It details the expected growth of data centre electricity demand in Europe, projected to rise by over 50% from 2025 to 2030, primarily driven by colocation and hyperscale expansions in metropolitan areas. The report outlines the challenges posed by this growth to electricity transmission system operators (TSOs), including stability risks associated with software-driven load profiles and the potential for large-scale disconnections during grid disturbances. Additionally, it discusses the implications for grid planning, including the strain on transmission capacity and generation adequacy. The report also identifies opportunities for leveraging data centres as active grid resources through advanced power electronics and flexible connection agreements. By addressing these challenges and harnessing the inherent flexibility of data centres, the report suggests pathways for improving grid security and facilitating market participation.