Power shortages hinder data center expansion in UK and Europe

Power shortages are delaying the construction of new data centers in the U.K. and Europe. Companies like Segro are struggling to secure electricity supply, which is essential for their expansion plans. Utility companies are working to upgrade infrastructure to meet demand. The U.K. government has classified data centers as critical national infrastructure, aiming to streamline their development despite environmental concerns. This change allows the government to override local opposition, facilitating new projects to support the growing tech sector. In Europe, demand for data centers is expected to triple by 2030, raising concerns about meeting energy needs while achieving climate goals. Challenges include limited power sources, infrastructure issues, and a shortage of skilled workers, complicating efforts to balance growth and sustainability.