Europe’s old power plants become AI hub

Europe has been rapidly converting its coal and gas power plants for a high-tech future. Primarily, high-tech firms such as Amazon, Microsoft have been seeking to partner with European utilities, including Engie, RWE and Enel, to repurpose sites that already have access to electricity, infrastructure, and cooling systems.

The significant approach addresses the increasing demand from growing AI powered data centers by utilizing existing infrastructure, which ultimately support the expansion of renewable energy.

In this regard, tech companies view these sites as a major source for securing two critical resources for the AI industry: 

• Power grid connections 
• Water-cooling facilities

The vice president for energy at Microsoft, Bobby Hollois said, “You have all the pieces that comes together like water infrastructure and heat recovery...”

In addition, head of global partnerships and transactions at RWE, Simon Stanton said, “The deal offers much more than just the scale of unused land as they include opportunities for stable, high margin revenue."

He further declared, “It’s more about the long-term relationship that you get over time that enables you to de-risk and underwrite your infrastructure investments.”

From an economic perspective, these deals are more compelling for utilities because they can negotiate long-term power supply contracts to fund renewable energy projects. Tech companies in turn, are willing to pay a premium for this rapidly growing market.

Ultimately, the digital makeover of Europe’s old power plant is a strategically and economically driven response to the pressures of climate actions and technological advancements. 

This presents a major transformation that offers a new revenue stream for utilities while potentially accelerating Europe’s broader transition to clean energy.