Barely any EU data centers are actually ready for AI - and upgrading could be a costly challenge

• European data center supply doesn't meet rising demand for AI, report finds
• Unsuitable power density and cooling systems are the problem
• Some countries are better suited to new campuses than others

Only one in five European and Middle East data centers are ready for AI, and even though AI-readiness is expected to reach 70% by 2030, up from 20% today, demand still looks to outpace supply, new research has claimed.

Data from BCS found many existing sites were built for traditional cloud workloads, therefore they're not ready to handle high-density GPU racks, rendering previous-generation data centers unsuitable for future workloads unless they're upgraded.

The report blamed insufficient power density and cooling systems that aren't designed for sustained AI-induced heat loads. And while upgrades are off the cards for many, and other new sites are being stalled, 93% of the surveyed industry experts expect demand to rise in the next 12 months (78% blame AI).

European data centers need major upgrades to handle AI

Some of Europe's key challenges slowing down the built-out of new data centers include land shortages, connection delays to the grid, material shortages and a shortage of skilled labor.

And it's not set to change, with 86% agreeing that supply chain volatility is now structural, not temporary.

"The assumption that capacity can continue scaling simply by adding more sites and more power won’t hold in 2026," company CGO Alexandra Thorer wrote.

BCS also noted an increased focus on sustainability, with 89% of the respondents expecting most (90%) of data center energy to come from renewables by 2035. Power availability has now become one of the top factors when choosing a site.

BCS noted that, while countries like Germany, Austria, Switzerland and France plan strong growth, it's actually other regions that could hold the key. The report highlighted favorable climate conditions in the Nordics for reducing cooling requirements, and higher land availability in the Middle East.

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