EU's Embrace of AI Potentially Leads to a Surge in Data Centers?
The European Commission recently unveiled the AI Continent Action Plan on April 9, 2025, aiming to establish Europe as the global leader in artificial intelligence (AI) while addressing the significant environmental impacts of AI Factories and proposed AI Gigafactories.
Under the plan, a network of AI Factories will be established around the world's top supercomputers in Europe. By 2030, the EU plans to triple its data center capacity through the deployment of large-scale data centers across the continent. In total, 13 AI Factories are already underway, with each AI Gigafactory set to be equipped with around 100,000 next-generation AI chips, four times more than current AI factories.
However, the environmental impacts of these infrastructures are problematic. The high energy consumption of AI Factories and Gigafactories could lead to a 70% rise in data center energy demand, intensifying greenhouse gas emissions. Resource-intensive hardware production and operation stress resource extraction and disposal systems, while water use and waste heat from data centers can harm local ecosystems.
To mitigate these impacts, the AI Continent Action Plan includes several measures and strategies. Energy and water efficiency improvements, reuse of waste heat, and circular economy and material reuse are all highlighted measures to lower raw material use and e-waste. The plan also commits to reducing absolute emissions in line with the EU’s target of 55% greenhouse gas emission reduction by 2030, with a goal for climate-neutral and highly energy-efficient data centers by 2030.
Updating regulatory frameworks is another key aspect of the plan. The Ecodesign for Sustainable Products Regulation will be updated to include data centers as priority products, addressing not only energy efficiency but also reducing the material footprint during manufacturing. Community participation and impact assessments are also stressed, with a focus on incorporating health and social factors beyond monetary terms.
Legal and policy support is also provided. The EU's AI Act explicitly mandates considering environmental protection in AI policymaking, and policies around e-waste management and environmental impact disclosures are being promoted.
The AI Factories are intended to support European AI startups, industry, and researchers, helping in developing AI models and applications. With the AI Continent Action Plan, the European Union aims to achieve its goal of becoming the global leader in artificial intelligence while ensuring a sustainable and environmentally friendly approach to AI development.
[1] European Commission. (2025). AI Continent Action Plan: A Sustainable Approach to AI Development. Retrieved from
- The AI Continent Action Plan, initiated by the European Commission, emphasizes the importance of energy and water efficiency improvements, waste heat recycling, and circular economy principles to counteract the environmental impacts of AI Factories and proposed AI Gigafactories.
- The European Parliament's proposed Regulation on E-Waste Management and Environmental Impact Disclosures is a legal effort aimed at reducing the environmental footprint of data centers and promoting sustainable AI development.
- In line with the European Union's goal of becoming a global leader in artificial intelligence, the AI Factories, equipped with data-and-cloud-computing technology and artificial-intelligence capabilities, will support environmental-science research and climate-change mitigation efforts while adhering to sustainable principles detailed in the AI Continent Action Plan.
