Europe Converts Coal, Gas Plants Into AI Data Centers

Europe is repurposing aging coal and gas-fired power plants into AI-driven data centers, with tech giants like Microsoft and Amazon partnering with utilities such as Engie, RWE, and Enel to utilize existing electrical and water infrastructure. This transformation addresses the surging energy demands of AI while providing utilities with new revenue streams and long-term power contracts that can help fund renewable energy projects and offset decommissioning costs. Tech companies value these sites for their ready access to power grid connections and cooling systems, which are critical bottlenecks for large-scale data centers. While this shift offers economic and strategic benefits, concerns remain about environmental impacts, particularly if data centers rely on fossil fuels, potentially undermining Europe's climate goals and stressing power grids. Regulatory frameworks like the EU’s Energy Efficiency Directive play a crucial role in managing emissions and energy efficiency as this transition progresses. Overall, this digital makeover represents a significant step in Europe’s broader clean energy transition while supporting the growth of the AI industry.