Denmark faces data center reckoning as power grid overwhelmed by surging demand

In this article GOOGL MSFT Follow your favorite stocks CREATE FREE ACCOUNT COPENHAGEN, Denmark — The Nordics, long seen as a magnet for data center investment thanks to their stable climate and abundance of renewable energy, are now weighing limits on the growth of the power-hungry facilities as surging energy demand forces a rethink. At the center of the debate is Denmark, the first of the Nordics to confront the question head-on, as the formation of a new government and a spike in grid access requests have meant a pause on new projects. Data centers around the world are increasingly facing pushback due to concerns about their energy use. In the U.S, Maine recently came close to a data center construction ban and in Pennsylvania, the backlash could harm incumbents ahead of elections. Other states, including Virginia and Oklahoma are considering moratoriums . Only two European countries have enforced full moratoriums on data centers, namely the Netherlands and Ireland. Both member states have since eased restrictions under certain conditions. But grid pressures are spreading across the continent, as the AI boom adds to an acceleration in electrification that was already being boosted by the energy transition and digitalization. The 'hunger games' of energy policy In March, Denmark's state-owned grid operator Energinet introduced a temporary pause on new grid connection agreements due to an "explosion" in capacity requests, a spokesperson told CNBC. Around 60 GW of projects are waiting for connections. That far exceeds Denmark's peak electricity demand of around 7 GW. Data centers account for nearly a quarter (14 GW) of the 60 GW potential new grid connection projects, the spokesperson said. "If you cannot get your AI workloads located in Denmark, you'll just move them somewhere else, and that is what we will see. Pernille Hoffmann Managing director of the Nordics at Digital Realty An extension of the moratorium can't be ruled out, Data Center Industry Association CE...