Belgium mulls energy limits for power-hungry data centres as AI demand surges

Belgium's electricity grid operator is contemplating the introduction of electricity allocation limits for data centers to ensure that other industrial sectors are not sidelined. This decision comes in response to a significant spike in demand from the energy-intensive data centers that support artificial intelligence operations. According to Elia, the grid operator, a proposed reform would categorize data centers separately, allowing for dedicated grid capacity to be allocated to them, but within defined limits. This would safeguard access for other industries, ensuring they remain competitive in connecting to the electricity network. As global tech giants invest heavily in AI technologies, the surge in energy requirements for data centers has prompted various nations to adapt their energy strategies. In Belgium, requests for data center capacity have surged nine times since 2022. The reserved capacity for 2034 has already exceeded double the anticipated 8 terawatt-hours outlined in the national grid development plans. Elia noted that the scale of this demand was unforeseen in previous development scenarios for the country's electricity grid. They emphasized the importance of preventing speculative projects from consuming valuable grid capacity. Belgium's energy minister, Mathieu Bihet, stated that the evolving energy needs of data centers will be a primary focus in the impending 2028–2038 federal grid development plan. During a recent parliamentary session, he assured lawmakers that he would prioritize this issue during the plan's approval process. Meanwhile, Google has announced plans to invest 5 billion euros (approximately $5.80 billion) in Belgium as part of its strategy to enhance its data center operations in support of its AI initiatives.