Europe’s ageing coal and gas plants are nearing the end of their operational lives, but this challenge is opening up an exciting opportunity. As artificial intelligence ramps up energy demand, these sites are set to be transformed into high-tech data centres.
Major tech companies like Microsoft and Amazon are taking notice. With existing infrastructure in place, these power plants offer ready access to essential resources like power and water – a key edge in speeding up development. Microsoft’s representative points out that the blend of water systems and heat recovery capabilities makes these sites particularly attractive for quick conversion.
On the utility side, firms such as France’s Engie, Germany’s RWE, and Italy’s Enel are seizing the moment. Instead of a one-off land sale, they’re envisioning long-term partnerships with tech leaders. These alliances can secure lucrative power supply contracts while supporting the shift to renewable energy. As some experts, including a representative from OVH, note, tech companies are even willing to pay a green premium for low-carbon energy – deals that might be worth billions.
Engie, for example, plans to double its renewable capacity by 2030 and is actively promoting 40 global sites for data centre conversion. This move comes at a time when Europe’s data centre capacity lags behind that of the U.S. and parts of Asia. By repurposing old power plants, the continent is aiming to quickly meet the soaring needs of the AI industry.
If you’ve ever struggled with lengthy grid connection delays or cumbersome permitting processes, this strategy offers a refreshing change. Repurposing these industrial sites not only revitalises old assets but also creates a more stable, future-proof energy landscape for both utilities and tech giants.
