How data center expansion risks derailing climate goals and what to do about it
Data centers are the backbone of the digital economy, and political momentum behind artificial intelligence is accelerating their growth. In her 10 September State of the Union speech, the president of the European Commission framed European AI as “essential for our future independence” and confirmed massive investments in AI “gigafactories”.
But if Europe continues expanding AI and data centers without a clear direction, we risk funneling public and private investment into infrastructure that not only fails to deliver digital sovereignty. This expansive growth will also drive up electricity demand, strain water resources, generate mounting e-waste, entrench dependence on fossil-heavy grids, and undermine energy security.
The report co-written by ECOS and Open Future calls for a different path forward. Beyond pursuing efficiency, Europe must address the structural drivers behind unchecked digital expansion. The EU needs to move past the AI hype cycle and align infrastructure investments—including data centers—with public interest and genuine societal needs, particularly climate objectives. This report lays out how that can be done.
In Part 1, we present the different kinds of data centers out there, and what impact AI has on them. In Part 2, we elaborate on what environmental impact looks like for this sector, and why we need to address it. In Part 3, we summarize the existing EU policy landscape — and the opportunities to course-correct — concluding in Part 4 with recommendations for action.
As Europe works to close the gap with global leaders in AI and digital infrastructure, and as new EU initiatives take shape, there is a unique opportunity to align technological development with environmental and social responsibility. Embedding sufficiency, circularity, and transparency into the design of digital infrastructure is essential to ensure that its development respects planetary boundaries and serves the public.
