European datacenter boom risks energy cost spikes by 2035

Moody's forecasts show European datacenters could consume 17-30% of national electricity by 2035, threatening household and business energy costs without intervention.

Moody's latest report warns that without government action, European datacenters will consume 17% of Dutch electricity and 30% of Irish electricity by 2035. Ireland’s consumption has already surged from 5% of its electricity in 2015 to 23% in 2025, while France and the UK are projected to see datacenters account for at least 5.7% of electricity demand by 2035. The EU’s plan to triple datacenter capacity within five to seven years accelerates this trend, though Moody’s emphasizes these forecasts assume current expansion rates and do not directly translate to actual electricity consumption.

The mechanism is simple: datacenter growth strains national grids, particularly in countries with rapid adoption like Ireland. Current consumption patterns—especially Ireland’s outlier trajectory—signal how quickly this sector can outpace infrastructure. Without targeted policy interventions, the rising share of electricity dedicated to datacenters will directly increase household and business energy costs.

This friction threatens abundance for energy-intensive needs like heating, lighting, and internet access. Higher energy bills could gate these essentials for low-income households and small businesses, worsening inequality in the transition to digital services. The EU’s capacity targets, while ambitious, don’t yet reflect the immediate strain on electricity systems.

What to watch: Whether governments implement demand-side management policies before 2035. Ireland’s unusual consumption pattern and the gap between EU capacity targets and actual electricity use mean these forecasts may not fully capture real-world impacts. Moody’s report (October 13, 2026) remains the only verified source for these projections.

Source: The Register