Surging demand for electricity around the world, caused by a growing number of AI data centres and electric cars, is stressing networks and affecting the economies of countries that can’t keep up.
Decades of research shows that reliable electricity supplies support economic growth, which is now under threat in wealthy countries as they race to build the infrastructure needed to support the demands of cutting edge technology.
For example, if the Netherlands’ grid is not rapidly strengthened, it could cost the country between €8 billion and €30 billion in lost economic activity.
Earlier this year, Google canceled the construction of a new data centre near Berlin because German utilities couldn’t provide sufficient power until 2033.
Similarly, Microsoft moved its data centre investments away from the UK and Ireland towards Scandinavia because of electricity shortages.
Countries that fail to meet rising electricity demands risk missing out on financial investments that could shape their prospects for decades to come.
