Europe’s growing push to expand its artificial intelligence infrastructure is putting additional pressure on electricity networks, prompting startups to develop technologies aimed at reducing data centre energy use and making better use of existing power capacity.
Data centre electricity consumption across Europe is expected to rise from 96 terawatt-hours in 2024 to 236 TWh by 2035, according to UK-based energy think tank Ember. The expected increase is being driven partly by rising demand for AI computing, while strained electricity grids are making it more difficult to connect new facilities.
Several European startups are working on ways to reduce the amount of electricity used by data centres, particularly for cooling, while others are developing systems to manage electricity demand or reuse heat produced by servers.
UK startup EkkoSense uses wireless sensors to monitor temperature, airflow, power consumption and cooling capacity inside data centres. Its software creates a three-dimensional picture of conditions inside the facility, helping operators identify areas receiving excessive or insufficient cooling.
In 2024, EkkoSense deployed its technology across 20 data centre sites operated by Virgin Media O2. The telecommunications company said the system reduced cooling energy consumption by an average of 15%, saving more than £1 million annually and the equivalent of 760 tonnes of carbon dioxide under location-based accounting.
German startup etalytics uses simulation software to model data centre cooling systems. Its technology examines equipment such as chillers, pumps and heat exchangers under different operating conditions to identify ways of reducing electricity use while maintaining safe temperatures.
Japanese technology company NTT tested the system at its data centre in Bonn last year. Electricity consumption from chillers fell by 19.1% during the initial months of the trial, with NTT expecting savings of up to 25% over a full year.
Spanish startup Submer is taking a hardware-based approach by immersing servers in non-conductive liquid. The system transfers heat directly away from computing equipment, reducing reliance on fans and conventional air conditioning.
Telefónica said the technology could increase energy efficiency by up to 50%, while reducing refrigerant-related emissions and data centre space requirements.
Other companies are focusing on electricity management. Irish energy technology company GridBeyond has installed software at two Dublin data centres owned by Keppel DC REIT. The system controls when batteries charge and discharge according to conditions on the electricity network, providing a combined 8 MW of flexible capacity.
Meanwhile, UK startup Deep Green is seeking to reuse server heat by locating compact computing facilities near buildings that need heating. In a southwest England trial, the company said supplying heat to a swimming pool could cut gas consumption by 62%, save more than £20,000 a year and reduce annual carbon emissions by 25.8 tonnes.
Deep Green CEO Mark Bjornsgaard said the technology could eventually provide around 30% of industrial and commercial heat requirements.
The International Energy Agency estimates that new grid infrastructure can take between five and 15 years to plan, approve and complete. While efficiency measures cannot replace additional electricity generation and stronger grids, the technologies being developed by European startups could help reduce pressure on power networks as new infrastructure is built.
