AI and the Future of Energy: Schneider Electric's EU Outlook

The growth of artificial intelligence is reshaping Europe's energy landscape, creating a major transformation for industries and policymakers alike.

A 2025 report from Schneider Electric's Sustainability Research Institute (SRI) titled AI & Energy in Europe provides a scenario-based analysis of the opportunities and challenges where digital intelligence meets energy sustainability.

According to Laurent Bataille, Executive Vice President of European Operations at Schneider Electric, Europe has a unique position.

"Europe has a unique opportunity to lead in sustainable AI development. Currently, it has less than 5% of the world's computing infrastructure, well below its share of global GDP,” says Laurent.

He adds: “But to unlock the full potential of AI while meeting our climate goals, it is clear from this research that we must work together to accelerate permitting processes, facilitate a faster and simpler connection to the grid, and continue to invest in decarbonised electricity capacity. Electricity is the backbone of Europe’s digital future, so if we manage it in the right way, we have the chance to succeed in the digital and energy transitions together."

AI growth and electricity demand

The expansion of AI is dependent on the consistent availability of electricity. Data centres have shifted from storage facilities to becoming the foundation of the digital economy, supporting the growth of cloud computing and generative AI.

The International Energy Agency (IEA) projects that global electricity demand for data centres could double by 2030, presenting challenges for power grids across Europe.

“Our analysis shows that AI-driven electricity demand is rising at a rapid pace, and the trajectory is institutionally mediated,” says Thomas Le Goff, Assistant Professor of Law & Technology at Télécom Paris. “It will be shaped as much by regulation and governance as by algorithms, chips or servers.”

The SRI report suggests that Europe’s digital ambitions are tied to the resilience and sustainability of its energy infrastructure.

While AI could enhance decision-making and reduce emissions, its widespread adoption is hindered by uneven deployment and energy constraints. Fragmented regulation and grid congestion could slow progress as Europe aims to establish itself as a global AI leader.

Future European energy scenarios

Using a system dynamics model, Schneider Electric identified four potential pathways for AI electricity demand in Europe through to 2030.

• Sustainable AI: This pathway sees consumption grow to 90TWh by 2030 in line with grid and climate objectives, supported by adaptive regulation.
• Limits to growth: In this scenario, expansion is tightly limited by regulatory friction and infrastructure delays, with demand reaching just 45TWh by 2030.
• Abundance without boundaries: An industry-led expansion leads to exponential growth to 145TWh by 2030, which could risk infrastructure strain.
• Energy crisis: Rapid expansion outpaces the grid’s capacity, leading to crisis-management measures and forced reductions in digital demand.

National policies and infrastructure

The report analyses three national case studies to show how policy and infrastructure influence outcomes. Ireland, a major data centre hub, faces considerable pressure, with data centres accounting for 21% of electricity use, a figure that may hit 31% by 2030.

A moratorium on new connections in Dublin until 2028 highlights these supply constraints. In Germany, efficiency mandates are reducing the carbon intensity of AI electricity, but grid adequacy remains a challenge.

France, with its robust nuclear fleet, appears well-positioned for sustainable AI – yet administrative bottlenecks are slowing growth.

The analysis points to three principles for a sustainable AI future: developing infrastructure and flexibility, implementing adaptive regulation and focusing on grid decarbonisation.

The report cautions that regulation alone may stall growth, while focusing only on efficiency could lead to rebound demand. This "green efficiency paradox" suggests that even large improvements in carbon intensity can be negated by increasing digital demand.

Therefore, ensuring supply can match future demand is a key policy constraint. “The resilience, sustainability, and efficiency of Europe’s energy systems directly determine the pace at which its digital ambitions can flourish,” says Laura Cozzi, Director of Sustainability, Technology, and Outlooks at the IEA.

The SRI report from Schneider Electric positions Europe at a critical juncture. The decisions made by policymakers and businesses now will determine whether the continent can secure a resilient, low-carbon digital infrastructure.