Europe’s aging power plants to get digital makeover amid AI boom
As AI-driven data demand surges, major tech companies like Microsoft and Amazon are repurposing Europe’s old coal and gas power plants into data centers. Utilities such as France’s Engie, Germany’s RWE, and Italy’s Enel are partnering with these firms to convert aging power sites, leveraging existing grid connections and water cooling infrastructure—two critical bottlenecks in the data center industry.
This approach helps utilities offset closure costs of fossil fuel plants while securing long-term, high-margin power supply deals linked to renewable energy projects. Data center power needs range from hundreds of megawatts to gigawatts, with tech firms willing to pay premiums for low-carbon electricity, News.Az reports, citing Reuters.
With most of Europe’s 153 coal and lignite plants set to close by 2038 to meet climate goals, converting these sites offers a new revenue stream and supports a transition to greener energy. Experts highlight the advantage of “speed to power” as repurposed plants enable quicker grid access compared to new builds, critical in the fast-growing AI sector.
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