Big Tech is repurposing Europe’s aging coal and gas power plants into data centers to meet the soaring energy and cooling demands of AI operations, reported by Reuters. Companies like Microsoft and Amazon are partnering with utilities such as Engie, RWE, and Enel to convert these sites, already equipped with grid access and water infrastructure, into high-tech hubs. This strategy offers utilities new revenue streams and helps offset the costs of closing fossil fuel plants, while speeding up deployment timelines for tech firms. With grid connection delays plaguing Europe, these retrofits provide a faster, greener path forward for both industries. They write:
Some of Europe’s ageing coal and gas fired power plants can look forward to a more high-tech future as big tech players, such as Microsoft and Amazon, seek to repurpose them as data centres, with ready-made access to power and water.
Companies such as France’s Engie, Germany’s RWE, and Italy’s Enel are looking to benefit from a surge in AI-driven energy demand by converting old power sites into data centres and securing lucrative long-term power supply deals with their operators. […]
Tech companies see these sites as a quick way to secure power grid connections and water cooling facilities, two big bottlenecks in the AI industry. […]
Tech companies are willing to pay more for projects that can start up sooner as they vie for market share in a rapidly growing industry, said Sam Huntington, director of research at S&P Global Commodity Insights.
“Speed to power is just the phrase we keep hearing over and over again,” he said.
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