Due to the growing demand for electricity fueled by the rise of artificial intelligence, some old coal- and gas-fired power plants in Europe could soon be repurposed into data centers. This transition would provide tech giants with quick access to electricity and water for cooling, while allowing power plant operators to avoid the high costs associated with decommissioning these facilities, Reuters reports.
Energy companies such as France’s Engie, Germany’s RWE, Italy’s Enel, and others are planning to take advantage of this opportunity by converting aging power plants into data centers, thus securing long-term and lucrative power supply contracts with data center operators.
The power capacities required for data centers range from several hundred megawatts to over one gigawatt, according to Reuters.
For energy companies, this strategy provides a way to alleviate the high costs of shutting down old plants, while also potentially supporting investments in renewable energy sources. On the other hand, tech companies like Amazon and Microsoft view these sites as a quick solution to connect to the power grid and access water-based cooling systems, both of which have become key bottlenecks in the artificial intelligence sector.
Energy companies may choose to lease land or even build and operate data centers themselves, ensuring long-term power supply agreements with tech firms.
There is also consideration being given to connecting data centers to new renewable energy plants.
Another potential option is to develop renewable power generation capacities at these sites, which would supply energy directly to the data centers, with the public grid serving only as a backup in emergencies.
Engie, which plans to double its renewable energy capacity by 2030 at the latest, is offering data center operators access to 40 locations worldwide, including coal and gas plants that could be converted. Other companies offering their old coal and gas plants for this purpose include Portugal’s EDP and France’s EDF, according to Reuters.
Source: Balkan Green Energy News