From sensors that fine-tune cooling systems to batteries that stabilize local grids, European startups are racing to solve a problem no one saw coming: the continent’s AI ambitions now threaten to overwhelm its electricity infrastructure.
Power demand from data centres across Europe could climb from 96 terawatt-hours in 2024 to 236 terawatt-hours by 2035, according to UK energy think tank Ember. Meanwhile, grid upgrades that might relieve that pressure typically require five to 15 years to plan, permit, and build. That gap has created an opening for technology companies offering efficiency gains that operators can deploy within months rather than decades.
EkkoSense, a UK startup, installs wireless sensors throughout data-centre halls to track temperature, airflow, and cooling capacity in real time. Its software renders a three-dimensional picture of facility conditions, showing managers exactly where cooling falls short or goes to waste. Virgin Media O2 deployed the system across 20 sites in 2024, cutting cooling energy use by an average of 15 percent. The savings topped £1 million annually and avoided roughly 760 tonnes of carbon dioxide emissions.
German firm etalytics takes a different route, building a digital twin of an entire cooling system before testing how chillers, pumps, and heat exchangers respond under varying loads and weather. NTT trialled the software at its Bonn facility, where chiller electricity consumption dropped 19.1 percent in the first months. The company projects savings could hit 25 percent over a full year.
Spanish startup Submer goes further still by rethinking the hardware itself. Its systems submerge servers in non-conductive liquid that whisks heat away directly, eliminating the need for power-hungry fans and conventional air conditioning. Telefónica reported efficiency improvements of up to 50 percent along with lower refrigerant emissions and a smaller physical footprint.
Beyond cooling, Dublin-based GridBeyond repurposes backup batteries as grid buffers. Software controls when those batteries charge and discharge, drawing power when renewable supply is abundant and feeding it back during peak demand. Two Keppel DC REIT facilities in Dublin now provide 8 megawatts of flexible capacity, easing local congestion and potentially earning revenue through demand-response programmes.
UK startup Deep Green tackles the problem from a different angle entirely: waste heat. The company places compact computing units next to buildings that need constant warmth, such as leisure centres. In southwest England, donated server heat reduced a swimming pool’s gas consumption by 62 percent, saving over £20,000 per year and cutting carbon emissions by 25.8 tonnes.
Efficiency alone cannot replace physical expansion. But with grid infrastructure moving slowly, these startups buy European operators something invaluable: time.
