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Data center consumption is expected to increase almost double by 2030 – from 485 Terawatt-hours (TWh) in 2025 to 950 TWh in 2030, equivalent to three percent of global demand, according to the intergovernmental International Energy Agency (IEA).
In contrast, investment in data center infrastructure worldwide is expected to double by 2050 – from about $800 billion per year in 2026 to $1.8 trillion per year in 2050.
The Geneva-based Commission (UNECE) warned that in many regions, data centers and other energy-intensive facilities are experiencing energy shortages. is being built much faster than the power grid needs to supply it.
A large facility can often be built and connected within two to five years, but expansion of transmission lines and other network infrastructure can take more than 10 years due to the lengthy planning, approval and construction process.
Overloading the electrical system
One concern is that an overloaded electrical system can cause voltage oscillations, unintentional disconnections, and cascading failures.
This is already happening in some extreme cases, in systems that depend on renewable energy sources. Electricity demand from AI data centers is volatile and can spike unexpectedly: power grids that rely on renewable energy cannot adjust in real-time, according to UNECE.
This mismatch between demand and supply has caused some countries to take energy saving measures to prevent overloading their national grids.
Ireland, which has one of the highest concentrations of data centers in the world, has introduced this connection restrictions in Dublinand it The Netherlands has implemented restrictions on where data centers can be built.
Split the bill
An important unresolved issue is who should finance electricity grid upgrades.
Connecting large data centers requires large infrastructure investments, but there is no consistent framework that dictates how these costs should be shared between data center developers, power companies, and consumers.
Without clear rules, UNECE warned that necessary investments may be delayed.
Regulatory gaps
Regulatory gaps also remain regarding data center location. Electricity-intensive facilities continue to congregate in areas that offer good connectivity and regulatory conditionsconcentrating demand in places where the local power grid may not have the capacity to support it.
Environmental regulations are also starting to expand, not just regarding electricity consumption, but also covering the wider impact of data centers on water use, emissions and local resources, but UNECE warns that these regulations are still too fragmented.
Regulators also lack information on how much electricity these facilities use in real time, making it more difficult to anticipate the impact on the power grid.
Overall, UNECE calls for greater regulation and coordination to ensure the long-term reliability and resilience of increasingly important energy systems.
