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#Cross-sector, Energy & Sustainability

From Gridlock to Grid Asset: Data Centres for Digital Sovereignty, Energy Resilience, and Competitiveness

  • September 30, 2025
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Read the Report "From Gridlock to Grid Asset: Data Centres for Digital Sovereignty, Energy Resilience, and Competitiveness"
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Why Data Centres Matter 

Data centres (DCs) have become emblematic of the next policy frontier where climate ambition, digital acceleration, economic resilience and energy security intersect. For Europe’s competitiveness to be strengthened, it needs to develop its Artificial Intelligence (AI) capabilities and the necessary infrastructure to support them. Yet, the European energy grid currently risks becoming a major bottleneck to Europe’s future digital and AI capabilities. 

Summary and Key Findings 

This multidisciplinary study examines the EU legislation applicable to data centres, as well as the technical and regulatory challenges at stake. It draws on case studies from both within and outside Europe, including France, Germany, Iceland, Ireland, the Netherlands, Norway, and the United States.  

The report calls for a more flexible and layered regulatory approach – one that is adaptive, proportionate, and responsive to evolving developments in the sector. It concludes with the following policy recommendations: 

  1. Streamline Permitting for Socially Valuable Infrastructure Projects – National authorities should further harmonise and simplify permitting processes and efficiency standards. Fast-track permitting should be granted to projects with high positive social impacts, including qualifying DCs, and use-it-or-lose-it provisions should be applied to reduce connection queues.
  2. Enable Incentives for Grid Flexibility and Clean Energy Use – CERRE estimates that the EU could unlock 50–60 GW of demand-side flexibility by 2035 through strategic grid user integration. Policy makers should encourage DC operators and other users to deploy battery storage, provide demand-response mechanisms, and integrate renewable energy sources. Incentives could include tailored network tariffs, electricity prices, co-investment models, and long-term pricing agreements (PPAs).
  3. Integrate DCs into Spatial and Electricity System Planning – Regulators and system operators should integrate digital infrastructure projections into spatial planning and designate ‘ready-to-connect’ zones in areas with low-carbon generation and uncongested grids, supported by participatory and inclusive planning mechanisms.
  4. Improve Transparency and Market-Based Signals – Update metrics measures such as Power Usage Effectiveness (PUE) and promote transparency on energy use, carbon emissions, and contributions to grid flexibility. Standardised tools like data-sharing platforms and flexible connection agreements can support demand-side response, while greater voluntary participation in ancillary service markets is essential.
  5. Strengthen Cross-Sector and Cross-Border Coordination – Support structured dialogue between transmission and distribution system operators (TSOs and DSOs) and industry, including across national borders, to resolve technical and regulatory issues and ensure a more coherent EU-wide strategy.

The report was presented and discussed at the Data Centres and the Grid event on 30 September 2025.

Author(s)
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Thomas Le Goff (1)
Thomas Le Goff
Assistant Professor of Law & Technology
Télécom Paris – Institut Polytechnique de Paris

Dr Thomas Le Goff is Assistant Professor of Law & Technology at Télécom Paris – Institut Polytechnique de Paris, where he teaches and writes about the regulation of digital technologies, data, cybersecurity and AI. His research focuses on the links between AI and sustainability, from a legal and public policy perspective. Prior to becoming an academic, he worked as an in-house legal counsel at Electricité de France (EDF), within the IP, digital and data legal department, where he was in charge of data protection and digital regulation expertise.

Dr Thomas Le Goff graduated from University Paris Cité (PhD in law and Master’s), University of Exeter (LLM) and University of Rennes 1 (LLB and Master’s). He wrote his PhD thesis on AI regulation in the energy sector, including an in-depth analysis of the AI Act and first proposals to incorporate environmental sustainability in AI regulation.

Dr Thomas Le Goff is Assistant Professor of Law & Technology at Télécom Paris – Institut Polytechnique de Paris, where he teaches and writes about the regulation of digital technologies, data, cybersecurity and AI. His research focuses on the links between AI and sustainability, from a legal and public policy perspective. Prior to becoming an academic, he worked as an in-house legal counsel at Electricité de France (EDF), within the IP, digital and data legal department, where he was in charge of data protection and digital regulation expertise.

Dr Thomas Le Goff graduated from University Paris Cité (PhD in law and Master’s), University of Exeter (LLM) and University of Rennes 1 (LLB and Master’s). He wrote his PhD thesis on AI regulation in the energy sector, including an in-depth analysis of the AI Act and first proposals to incorporate environmental sustainability in AI regulation.

Oliver Inderwildi
Oliver Inderwildi
University of Cambridge

Dr Oliver Inderwildi is a senior researcher, policy advisor, and technology strategist with more than 20 years experience in energy, sustainability and advanced digital technologies. He has authored more than 60 academic publications, consulting reports and White Papers in his areas of expertise and is Managing Editor for SpingerNature. Oliver holds advanced degrees in science, engineering, economics and business administration, was elected a Fellow of the Royal Society of Chemistry in 2014 and a By-Fellow of Churchill College, Cambridge University in 2012.

Dr Oliver Inderwildi is a senior researcher, policy advisor, and technology strategist with more than 20 years experience in energy, sustainability and advanced digital technologies. He has authored more than 60 academic publications, consulting reports and White Papers in his areas of expertise and is Managing Editor for SpingerNature. Oliver holds advanced degrees in science, engineering, economics and business administration, was elected a Fellow of the Royal Society of Chemistry in 2014 and a By-Fellow of Churchill College, Cambridge University in 2012.

Friðrik Már Baldursson
Friðrik Már Baldursson
Research Fellow
and Reykjavik University

Friðrik Már Baldursson is a CERRE Research Fellow and Professor of Economics at the Reykjavik University Business School where he formerly served as the Dean.

He has extensive experience of economic analysis from a decade of service as Head of Economic Research and Managing Director at the National Economic Institute of Iceland as well as from various consultancy projects.

He has been active in public service in various roles, including the Supervisory Board of the Central Bank of Iceland. In October 2008, he led negotiations with the IMF on Iceland’s behalf.

Prof. Baldursson holds a PhD in Applied Statistics and Probability from Columbia University as well as an MSc in Economics.

Friðrik Már Baldursson is a CERRE Research Fellow and Professor of Economics at the Reykjavik University Business School where he formerly served as the Dean.

He has extensive experience of economic analysis from a decade of service as Head of Economic Research and Managing Director at the National Economic Institute of Iceland as well as from various consultancy projects.

He has been active in public service in various roles, including the Supervisory Board of the Central Bank of Iceland. In October 2008, he led negotiations with the IMF on Iceland’s behalf.

Prof. Baldursson holds a PhD in Applied Statistics and Probability from Columbia University as well as an MSc in Economics.

Nils Henrik Von Der Fehr (2)
Nils-Henrik von der Fehr
Research Fellow
and University of Oslo

Professor Nils-Henrik M. von der Fehr is Professor of Economics at the University of Oslo. In addition to numerous academic positions, Nils-Henrik has chaired or served as a member of government committees both in his native Norway and internationally; he continues to provide expert advice to private companies and government institutions around the world on energy, as well as other issues. His research interests include microeconomics, industrial economics, regulation and competition policy.

Professor Nils-Henrik M. von der Fehr is Professor of Economics at the University of Oslo. In addition to numerous academic positions, Nils-Henrik has chaired or served as a member of government committees both in his native Norway and internationally; he continues to provide expert advice to private companies and government institutions around the world on energy, as well as other issues. His research interests include microeconomics, industrial economics, regulation and competition policy.

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