Business · Companies · 15 hrs ago

Power grid capacity is holding back Germany’s AI data centre growth

Power grid capacity is holding back Germany’s AI data centre growth

Germany’s limited high-voltage grid capacity is slowing AI data centre growth despite strong demand and available investment.

A planned centre in Dummerstorf, Mecklenburg-Vorpommern, was chosen partly because a 380-kilovolt power line runs nearby.

A similar project in Demmin, about 60 kilometres away, fell through because it lacked a way to connect to the high-voltage network.

The grid connection can determine whether a major project goes ahead, as data centres need large amounts of electricity.

Germany’s IT connection capacity is projected to grow from just over 3.3 gigawatts now to about 9.7 gigawatts by 2035, while projections for China and the United States are much higher.

Data centre developers are competing for scarce connections with battery storage projects, electrolysers and other large electricity users.

In April, Germany’s four transmission network operators changed how they assess applications, using project-readiness and network-impact criteria instead of simply granting access in application order.

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What people are saying

BitkomDigital industry association
The availability of sufficient power connection capacity is currently seen as by far the greatest challenge for the expansion of data centres in Germany.
via n-tv
91 percent of respondents name access to electricity and grid capacity as one of the three biggest challenges.
via n-tv