Europe’s AI Power Challenge and How Startups Are Responding

Europe’s initiative to develop its own artificial intelligence (AI) infrastructure is intensifying discussions about whether its electrical grid can keep up with the escalating demand.

According to UK-based energy think tank Ember, data-centre electricity consumption in Europe is projected to rise from 96 terawatt-hours (TWh) in 2024 to 236 TWh by 2035. Expanding AI capacity requires more data centres, which further stress an already overburdened grid, complicating the connection and construction of new facilities.

Some European startups are proposing innovative solutions to tackle the region’s power challenges. Euronews Next explores their strategies to optimize cooling energy, manage grid demand through batteries, and repurpose waste heat.

Startups Rethink Cooling with Sensors, Simulations, and Advanced Liquid Systems

Data centres require robust cooling systems to prevent server overheating. UK-based startup EkkoSense deploys wireless sensors to monitor temperature, airflow, power, and cooling capacity, providing a 3D environment view that identifies cooling inefficiencies. In 2024, EkkoSense’s system reduced cooling energy by 15% across 20 Virgin Media O2 data centres, saving over £1 million annually and cutting CO2 emissions by 760 tonnes.

German startup etalytics takes a simulation-based approach, modeling chiller and pump performance to optimize energy use. NTT’s trial at its Bonn facility reduced chiller electricity consumption by 19.1% in the first months, with projected annual savings reaching 25%.

Spanish company Submer addresses hardware inefficiencies through liquid immersion cooling, where non-conductive fluids directly transfer heat from servers. This method reportedly boosts energy efficiency by up to 50%, reduces refrigerant emissions, and lowers total cost of ownership, as highlighted in Telefónica’s blog post.

Software Gives Data-Centre Batteries a Second Job

Data centres traditionally use batteries for backup power, but Irish startup GridBeyond’s software now optimizes charging and discharging cycles to align with grid conditions. Installed at two Dublin facilities operated by Keppel DC REIT, the system provides 8 MW of flexible capacity, reducing grid reliance during peak demand.

Turning Server Heat into Heating Solutions

UK startup Deep Green partners with businesses to repurpose server-generated heat. By situating compact data centres near heating-demanding locations like swimming pools, the company channels warm liquid into local heating systems. In a southwest England trial, this approach reduced a pool’s gas consumption by 62% and cut annual carbon emissions by 25.8 tonnes, with CEO Mark Bjornsgaard noting that 30% of industrial and commercial heat needs could be met through this technology.

While these innovations alleviate grid pressure, expanding AI infrastructure demands increased energy production and grid upgrades. The International Energy Agency warns that grid developments can take 5 to 15 years, underscoring the urgency of startup-driven solutions to bridge the gap.

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