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    Home » Can Europe’s Start-ups Address the Energy Challenges of the AI Boom?

    Can Europe’s Start-ups Address the Energy Challenges of the AI Boom?

    TundeBy TundeSeptember 23, 2026 World News No Comments3 Mins Read
    Can Europe’s Start-ups Address the Energy Challenges of the AI Boom?
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    Europe is grappling with a rising demand for electricity as it pushes to develop its own artificial intelligence (AI) infrastructure. According to UK energy think tank Ember, data-centre electricity consumption across the continent is set to increase from 96 terawatt-hours (TWh) in 2024 to 236 TWh by 2035. This demand for more data centres is straining already burdened electricity grids, complicating the connection of new facilities.

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    Some European startups are working on solutions to alleviate the power crunch. Euronews Next examined these initiatives focused on improving energy efficiency, managing electricity demand, and making use of waste heat.

    Innovative Cooling Solutions

    Data servers produce considerable heat, necessitating efficient cooling systems. UK-based EkkoSense is enhancing cooling efficiency by installing wireless sensors in data centres to monitor temperature, airflow, and cooling capacities. Their software provides a three-dimensional view that helps identify over- or under-cooled equipment. In 2024, EkkoSense’s system was deployed at 20 Virgin Media O2 data centres, leading to an average cooling energy reduction of 15% and savings of over £1 million annually.

    Meanwhile, German startup etalytics simulates cooling systems to improve their efficiency. Their software, tested by Japanese firm NTT in Bonn, helped reduce chiller electricity use by 19.1%, with an anticipated annual savings of up to 25%. Additionally, Spanish startup Submer is changing the hardware by immersing servers in a non-conductive liquid, which can increase energy efficiency by up to 50%.

    Managing Battery Use

    Irish company GridBeyond is developing software to optimise battery usage in data centres. This allows facilities to charge batteries when electricity is plentiful and use them to meet demand during peak periods, decreasing reliance on the grid. Their technology has been installed at two data centres in Dublin, providing 8 megawatts of flexible capacity.

    Harnessing Waste Heat

    Other startups are utilising the heat generated by servers. UK firm Deep Green places compact computing facilities next to organisations needing heat, such as swimming pools. In a trial in Devon, Deep Green’s technology is expected to reduce a pool’s gas consumption by 62%, saving over £20,000 and cutting carbon emissions by 25.8 tonnes annually. CEO Mark Bjornsgaard commented that this approach could eventually supply around 30% of industrial heating needs.

    Despite these innovative strategies, the growing demand for AI will require more electricity generation and enhancements to Europe’s grid infrastructure, which can take 5 to 15 years to develop. Nevertheless, the contributions of these startups could help ease the current pressure on Europe’s power systems while these vital improvements are underway.



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