Twin Transition initiative targets data centre planning

Leading energy entities across Europe have committed to working together to ensure effective system integration of data centres, given that these facilities are expected to account for nearly a third in the increase in electricity demand on the continent by 2030.

Eurelectric, one of the signatories to the Twin Transition Commitments signed at the association's Power Summit in Helsinki, said artificial intelligence is set to become a major driver of Europe's competitiveness.

“Yet its growth will depend on access to reliable, affordable and sustainable electricity. Data centres alone are expected to account for around 28% of the increase in European electricity demand by 2030," said secretary-general Kristian Ruby.

“The initiative will assess future data centre demand and flexibility needs, explore how the power system can support sustainable growth, and identify the policy and market conditions needed to accelerate investment.”

Commitment signed

The Twin Transition Commitments notes that data centre deployment sits at the intersection of the digital and energy transitions, with demand rising fast enough to make power-system readiness a critical enabler.

“Over the coming year, we will work together across the digital and energy sectors to identify practical pathways for timely, efficient, and sustainable scaling, to ensure effective system integration of data centres in Europe.

“The work will culminate in a flagship report launched in 2027 exploring possible strategic trends and strategies as well as policy pathways and market enablers.”

Signatories to the agreement include: Eurelectric, Fortum, EDP, Aelec, A2A, PPC, Engie, Enedis, ESB, Google, Schneider Electric, Sepia infrastructure, GE Vernova, Iron Mountain data centers, CTC Global, Kaluza, CGI, EPRI, Siemens Smart Infrastructure, Enline, Hyosung Heavy Industries, Landys+Gyr.

Signatories are members of Eurelectric’s AI Flagship Steering Committee and Advisory Group.

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Focus on 3 key areas

The Group intends to explore sector developments, trends, collaboration and organisation strategies, regarding the following:

1. Data centre development

• Assess data centre demand, also identifying priority locations and deployment configurations, aimed at integrating data centres into power system planning, for an efficient system integration.
• Explore the potential of flexibility and digitalisation to unlock data centres development at scale, via investments in digital, physical and AI-enabled technologies to coordinate flexible loads while adhering to operational constraints.
• Investigate cost-effective pathways to deploy data centres, while mitigating overall system energy costs and prices to consumers.

2. Power system readiness

• Model how European electricity stakeholders can meet the rapidly growing AI-driven data centre demand, including through grid physical expansion, grid enhancing solutions and advanced energy technologies.
• Improve data centre demand forecasting by promoting greater consistency across national planning cycles, informed by a pan‑European perspective.

3. Sustainable & secure strategies

Explore how the transition can be delivered in a secure, sustainable and cost-efficient manner, including: 

• Utility–data centre collaborations, new contractual models, and the application of AI‑for‑energy initiatives based on real, standardised system data.
• Strengthening cyber resilience across the ecosystem, in response to growing AI related threats. 
• Advancing decarbonisation through sustainable data centre deployment and circularity, with energy efficiency, clean energy sourcing and through waste heat recovery.

Policy & market enablers

The signatories are also expected to delve into three areas where innovative market products, policies and contracts can support.

1. Connections & stability

• Accelerate grid connections for large loads through voluntary, predictable flexible connection frameworks as well as through structural queue management reforms, such as maturity-based prioritisation, among other solutions.
• Ensure data centres contribute to system stability and reliability by leveraging non-fossil flexibility in response to market signals as well as by complying with evolving demand connection requirements.
• Maximise the use of existing grid capacity through improved grid data transparency and the use of advanced operational, digital, and grid‑enhancing technologies to exploit all potential of existing infrastructure.
• Provide clear pathways for connections ensuring long-term investment certainty for grid operators and connected digital infrastructure, supporting timely planning and reinforcement decisions.

2. Market incentives & affordability

• Advance carbon-free power procurement, to support a sustainable and system-efficient integration of growing digital loads.
• Safeguard and promote Corporate PPAs.
• Ensure system efficient cost allocation, also through measures facilitating the integration of data centres in the energy systems.

3. Coordination & planning strategies

• Streamline permitting for new generation, grid infrastructure, and enabling technologies, while also supporting innovative public-private financing models, and preserving security of supply, environmental safeguards, and planning integrity.
• Strengthen long-term siting and planning coordination with data centres, hybrid grid connection and cooperation among system operators.
• Leverage coordinated and consistent regulatory approaches across Europe to support sustainable data centre growth.