Europe and Artificial Intelligence: Energy Crisis or Sustainable Future?

08.01.2026 | Energetics

A report by Schneider Electric warns of an energy crisis in Europe if urgent measures are not taken for the sustainable development of AI. The analysis examines different energy consumption scenarios up to 2030, highlighting the need for coordinated action in infrastructure, regulations, and decarbonization.

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Europe needs a pan-European approach for the sustainable development of artificial intelligence, according to a report from a study by Schneider Electric, dedicated to the development of artificial intelligence (AI) and its impact on electricity demand in Europe, the company announced.

Without immediate and coordinated investments in infrastructure, intelligent energy management, and partnerships between different sectors, Europe risks facing a serious energy crisis that could slow down innovation and economic progress, the analysis noted. 

The report, "AI and Energy in Europe," examines four scenarios for the expansion of data center capacity and expected energy consumption depending on different regulatory regimes. The analysis shows that by 2030, electricity consumption related to artificial intelligence in Europe could take radically different paths - from 45 terawatt-hours (TWh) with limited development, through 90 terawatt-hours with coordinated and sustainable development, to 145 terawatt-hours with uncontrolled expansion, as well as an unstable trajectory, characterized by alternating periods of crisis and recovery.

At the same time, each European country manages the energy demand generated by AI from a different starting position. Countries with low-carbon electricity production and flexible resources, including storage systems, flexible energy capacities, and load redirection capabilities, manage to meet the growth of AI with a minimal increase in emissions. In contrast, energy systems dependent on fossil fuels record an increase in emissions as a result of digital demand, even with strict energy efficiency standards.

The study finds that in order to achieve sustainability in the development of artificial intelligence, countries need coordinated action in three main dimensions: building infrastructure in advance of demand through accelerated implementation of stable and flexible capacities and modern, adaptive electricity systems; introducing an adaptive regulatory framework with triggers that adequately take into account adequacy and dynamic management of grid connection; as well as accelerating the decarbonization of electricity grids by integrating AI loads into an appropriate system context that supports low-carbon operations with unified efficiency standards at the EU level. 

"Europe has the unique opportunity to take a leading position in the sustainable development of artificial intelligence. At the moment, it has less than 5 percent of the world's computing infrastructure - significantly below its share of global GDP," said Laurent Bataille, Executive Vice President "European Operations" at Schneider Electric, quoted in the announcement.

"This study clearly shows that in order to unleash the full potential of AI and at the same time achieve our climate goals, joint work is needed to accelerate processes, faster and simpler grid connection and additional investments in decarbonized energy capacities. Electricity is the backbone of Europe's digital future, and if managed in the right way, we can succeed simultaneously in the digital and energy transition," he added

"The energy trajectory of AI is not predetermined, it depends on the decisions we make today, in three key areas: technology, regulations and infrastructure," added Remy Pacaut, Director of "Sustainability Research," it is stated in the announcement.