In a bold strategic maneuver underscoring its commitment to the European market, Microsoft has announced plans to establish over 200 new data centers across Europe by 2027, despite prevailing geopolitical uncertainties.
This initiative, unveiled by Microsoft President Brad Smith in Brussels, signifies a substantial investment in the continent’s digital infrastructure and a reaffirmation of the company’s dedication to supporting Europe’s technological advancement.
“We understand that European laws apply to our business practices in Europe, just as local laws apply to local practices in the United States,” Smith stated, emphasizing Microsoft’s respect for regional regulations and its role as a “voice of reason” in transatlantic tech relations.
The expansion aligns with the European Union’s ambition to triple its data center capacity within the next five to seven years, a move aimed at bolstering the continent’s position in the global artificial intelligence race. Microsoft’s plan to increase its European data center capacity by 40% over the next two years, with operations expanding in 16 countries, directly supports this objective.
However, this rapid growth in data infrastructure raises concerns about energy consumption and environmental impact. A report by Beyond Fossil Fuels warns that Europe’s electricity demands could rise by up to 160% by 2030 due to the AI-driven data center boom, potentially increasing greenhouse gas emissions significantly if fossil fuels are used to meet these energy needs.
Microsoft acknowledges these challenges and has outlined measures to mitigate environmental impacts. The company aims to source 100% of its electricity from carbon-free sources by 2030 and has invested in renewable energy projects, including a deal with Brookfield to contract 10.5 gigawatts of renewable energy worldwide.
Additionally, Microsoft is exploring innovative solutions to improve energy efficiency in its data centers. In Finland, the company plans to build a new data center region in collaboration with Fortum Corporation, which will operate with 100% emission-free energy and convert waste heat to district heating, serving multiple municipalities.
Despite these efforts, Microsoft’s total carbon emissions have risen by nearly 30% since 2020, primarily due to the construction of more data centers to meet growing demand for cloud services. The company emphasizes the need for industry-wide collaboration to develop greener building materials and hardware components to achieve its goal of becoming carbon negative by 2030.
As Europe navigates the complexities of digital transformation and energy sustainability, Microsoft’s substantial investment in data center expansion represents both an opportunity and a challenge. The company’s commitment to aligning with European regulations and investing in renewable energy sources will be critical in ensuring that this growth supports the continent’s environmental and technological goals.
For further details, please refer to the original article on Euronews: Microsoft pledges more than 200 datacentres in Europe by 2027 despite geopolitical uncertainty.