• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

How tech giants are transforming old European power plants into data centers

by August 5, 2025
by August 5, 2025

Ageing coal and gas-fired power plants across Europe are being eyed by major tech companies like Microsoft and Amazon for a high-tech transformation. 

These companies plan to repurpose the plants as data centers, leveraging their existing infrastructure for power and water access, Reuters said in a report.

European energy companies, including France’s Engie, Germany’s RWE, and Italy’s Enel, are capitalising on the increasing energy demands of AI. 

They are achieving this by transforming former power generation sites into data centers and establishing profitable, long-term power supply agreements with data center operators.

Opportunities for both sides

Data centers present an opportunity for utility companies to recoup the significant expenses associated with decommissioning older power plants, and also to potentially finance future renewable energy projects.

These locations are attractive to tech companies because they offer rapid access to power grid connections and water cooling, both critical and scarce resources in the AI sector.

“You have all the pieces that come together like…water infrastructure and heat recovery,” Bobby Hollis, vice president for energy at Microsoft was quoted in the report.

Lindsay McQuade, Amazon’s EMEA energy director, anticipates quicker permitting for data centers on existing sites, where a significant portion of the necessary infrastructure is already established.

According to him, utilities have two options: lease the land for these centers or construct and operate them directly, entering into long-term power agreements with technology companies.

Simon Stanton, RWE’s head of Global Partnerships and Transactions, stated that the deals provide more than just the sale of unused land, as they also present opportunities for stable, high-margin revenue.

Stanton was quoted in the report as saying:

It’s more about the long-term relationship, the business relationship that you get over time that enables you to de-risk and underwrite your infrastructure investments.

Driven by climate targets, the majority of the 153 hard coal and lignite plants in the EU and Britain are slated for closure by 2038. 

This follows the closure of 190 plants since 2005, according to data from Beyond Fossil Fuels, an NGO dedicated to accelerating the shutdown of coal-fired power stations.

New revenue streams

For utilities, data center agreements offer compelling economic benefits. They can secure long-term power supply contracts that support future renewable energy projects.

Tech firms are currently paying significant premiums, up to 20 euros per megawatt-hour, for low-carbon power, as noted by Gregory LeBourg, environmental program director at French data center operator OVH.

Given that data center power demands can range from a few hundred megawatts to over a gigawatt, this “green premium”—the additional cost for low-carbon electricity on top of the base market price—could result in long-term contracts potentially worth hundreds of millions or even billions of euros annually, according to Reuters’ calculations.

A relatively new approach to securing long-term power is the development of “energy parks” that directly connect to new renewable energy sources, with the grid serving as a backup for emergencies, according to the report.

France’s Engie aims to double its installed renewable energy capacity to 92 GW by 2030 from its current 46 GW. 

Sebastien Arbola, who leads Engie’s data center business, stated that the company is marketing 40 global sites to data center developers, including existing coal and gas plants suitable for conversion.

In addition, utilities such as Portugal’s EDP, EDF, and Enel are actively promoting their former gas and coal sites for the construction of new data centers.

Speed

Tech companies are drawn to the rapid access to power and water offered by repurposed plants, a stark contrast to the decade-long grid connection delays often experienced in Europe.

According to Synergy Research Group, Europe’s data center capacity significantly lags behind the US and Asia. This disparity is attributed to extended grid connection durations and a slower permitting process.

Data centre operators have two main options for procuring renewable power: direct long-term contracts with utilities or purchases from the power market.

Real estate firm JLL is facilitating several conversions, including a 2.5 GW data center at a former German coal plant. 

They are also working on four sites in Britain for a major tech client, as stated by Tom Glover, who handles data center transactions at JLL.

In Britain, Drax is actively seeking a partner to develop unused sections of an old coal site in Yorkshire, which has been partially converted to biomass. 

Richard Gwilliam, Drax’s carbon program director, noted that this site offers access to existing water cooling equipment. 

Drax proposes a “behind-the-meter” arrangement, where the power plant would directly supply power to the data center, with grid access available as a backup.

Similarly, EDF has selected developers for two sites located at gas power plants in central and eastern France.

According to Sam Huntington, director of research at S&P Global Commodity Insights, tech companies are competing for market share in a fast-expanding industry and are therefore prepared to pay more for projects with quicker start-up times.

Speed to power is just the phrase we keep hearing over and over again.

The post How tech giants are transforming old European power plants into data centers appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Here’s why the Rheinmetall share price will pop after earnings
next post
Asian markets: Nikkei up 0.54%; Sensex to open muted as Trump threatens new tariffs

Related Posts

Banijay to acquire majority stake in Tipico creating...

October 28, 2025

Cathie Wood warns investors to brace for correction,...

October 28, 2025

European markets open mixed on Tuesday: FTSE opens...

October 28, 2025

Entry and Midnight Foundation launch integration to unite...

October 28, 2025

Elon Musk challenges Wikipedia with Grokipedia, his AI-driven...

October 28, 2025

Novartis shares fall as profit lags estimates; downside...

October 28, 2025

Nio stock price forecast: is it safe to...

October 28, 2025

IBEX 35 Index has soared: top Spanish stocks...

October 27, 2025

Australia commits A$83.5 million to boost cyber resilience...

October 27, 2025

Honda joins India’s clean energy drive with OMC...

October 27, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Trumponomics Is Pushing Young Voters Into Socialism

    October 28, 2025
  • Banijay to acquire majority stake in Tipico creating a European gaming powerhouse

    October 28, 2025
  • Cathie Wood warns investors to brace for correction, backs this unlikely winner

    October 28, 2025
  • European markets open mixed on Tuesday: FTSE opens flat, DAX drops 0.4%

    October 28, 2025
  • Entry and Midnight Foundation launch integration to unite privacy and compliance in institutional DeFi

    October 28, 2025
  • Elon Musk challenges Wikipedia with Grokipedia, his AI-driven ‘truth platform’

    October 28, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 5

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 6

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 7

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025

Categories

  • Economy (3,031)
  • Editor's Pick (296)
  • Investing (185)
  • Stock (2,064)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Court blocks Trump tariffs: markets get a...

May 29, 2025

Asian markets open: Nikkei flat, Sensex to...

July 15, 2025

The biggest US VC-funded companies of 2025:...

April 1, 2025