European Power Demand Returns to Growth on Data Centers and Electrification

European electricity demand has returned to growth despite weak industrial activity and high energy costs, driven by rising electrification and a data center boom, according to Ember and BloombergNEF data. EU power demand rose 0.5% in 2025, below the 1.9% gain in 2024, but Germany, Italy and Spain have posted monthly increases over the past year, with Portugal and the Nordic countries also showing steep consumption growth. BEV sales in Europe surged 52.2% year-over-year in August, and battery electric vehicles outsold gasoline cars for the first time over a full quarter in the second quarter of 2026, per Transport & Environment. BNEF expects European data center power capacity to double to more than 30 GW by 2032 and reach 39 GW by 2035, with the UK and Germany remaining the largest markets at 7.7 GW and 5.1 GW through 2035. The shift strains aging grids. The European Commission estimates 2 trillion to 2.3 trillion euros in grid investment is needed through 2050.