Datacloud Energy & ESG 2025: Industry leaders call for urgent grid reform

Datacloud Energy & ESG 2025: Industry leaders call for urgent grid reform

Data centre power crunch

At Datacloud Energy & ESG 2025, industry leaders tackled one of the most pressing challenges facing Europe's digital infrastructure: how data centres and grid operators can work together more effectively.

The discussion in Brussels featured executives from data centre operators, industry associations, and grid operators, who underscored a growing urgency for regulatory clarity, transparency in power allocation, and a systemic shift towards collaborative energy planning.

Dame Dawn Childs, CEO of Pure Data Centres Group, highlighted the critical misalignment between the rapid growth of digital infrastructure and the sluggish pace of grid reforms.

Childs said: “There are examples of good efforts, but I haven't seen any complete success yet. The speed challenge is undeniable: grid sector reform, regulatory updates, and data centre growth are all happening at different rates.

“We need an approach that synchronises these elements, ensuring the digital economy continues to thrive.”

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Michael Winterson, managing director of the European Data Centre Association (EUDCA), emphasised the need for a fundamental shift in mindset.

“For the past century, we've operated in a simple buyer-seller relationship. But circular economic thinking demands a new way of working, one where regulators, grid operators, and data centres function as a team,” Winterson said.

Michael Winterson, managing director of the European Data Centre Association (EUDCA) speaking at Datacloud Energy & ESG 2025 in Brussels

“Encouragingly, we've seen more proactive engagement this year, but the real test will be whether all sides can sustain this shift in approach.”

A major theme that emerged from the discussion was the lack of transparency in power allocation.

Max Schulze, executive chair of the Sustainable Digital Infrastructure Alliance, pointed to instances where large allocations were made without public scrutiny.

“We’ve seen cases where vast amounts of grid capacity – hundreds of megawatts, are given to single operators without a democratic process. That not only impacts other industries but also the broader energy transition.”

Max Schulze, executive chair of the Sustainable Digital Infrastructure Alliance (SDIA) speaking at Datacloud Energy & ESG 2025 in Brussels

He pointed to German chemical firms like BASF as an example of how society can weigh the environmental costs against economic benefits, noting that while the chemical industry has high environmental costs, it also creates 50,000 jobs in Germany and pays significant taxes.

“Grid investments should yield clear benefits to society, and that means greater transparency in how power is distributed,” Schulze added.

Dame Childs also called for a more strategic approach to grid planning, noting that the current system often prioritises immediate access over long-term sustainability.

Dame Dawn Childs, CEO of Pure Data Centres Group (centre) speaking at Datacloud Energy & ESG 2025 in Brussels

“Rather than focusing solely on green electrons, we need to look at the full spectrum of green molecules. A well-planned transition, involving batteries, gas generation, and renewables, could position data centres as enablers of grid stability rather than burdens on capacity.”

She said that the UK's move to an integrated Energy System Operator is a step in the right direction, but more needs to be done at the European level.

The challenge of regulatory adaptation was another key issue raised by Winterson.

“Grid operators are bound by outdated frameworks that dictate how they allocate access,” the EUDCA managing director said. What was considered fair 30 years ago may no longer be equitable today.

“Regulators need to rethink allocation methods so that new entrants aren’t locked out while incumbents hoard capacity. A phased approach to demand planning could help balance this, ensuring power is used efficiently while maintaining competitiveness.”

Bart van der Laan, programme manager at Alliander, underscored the importance of long-term planning.

“Our infrastructure has to last at least 40 years. That means we need to take these challenges head-on, working together to find solutions that allow data centres to contribute to the energy system rather than simply consuming from it.”

Bart van der Laan, programme manager at Alliander speaking at Datacloud Energy & ESG 2025 in Brussels

Ultimately, the panellists agreed that stronger collaboration between the digital and energy sectors is non-negotiable.

“It takes three to tango,” Winterson remarked, referencing earlier panels that used the same line.

“If we align expectations, offer grid services in return, and regulators step up to modernise policies, we can build a system that works for everyone.”

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