Amazon Web Services (AWS) is facing significant challenges in advancing its European expansion due to outdated grid infrastructure and protracted interconnection delays. Pamela MacDougall, the head of energy markets and regulation for AWS EMEA, indicated that while establishing a new data center might take two years, securing the necessary power can stretch to seven years.
Impact of Aging Infrastructure on AWS Expansion
According to the International Energy Agency (IEA), major European cities like Frankfurt, London, Amsterdam, Paris, and Dublin experience wait times for power connections that can extend up to ten years. This trend is not unique to Europe; even in the U.S., particularly in Northern Virginia—known for its data center activity—connection lead times can reach similar durations.
Delays Affecting AWS Buildout Strategy
These considerable delays have prompted AWS to reevaluate its expansion strategy within Europe. An AWS representative reassured that the company continues to invest in infrastructure across more than 20 European countries, enhancing edge locations and data center regions. In their recent Q3 2025 earnings report, AWS announced the addition of over 3.8 gigawatts of power in the previous year, exceeding the capacity increases of other cloud providers. AWS aims to double this capacity by 2027 to keep up with rising customer demand.
Rise in Data Center Power Consumption
The demand for power is intensifying, especially with the ongoing AI boom. Following the launch of ChatGPT in 2022, data center power consumption has surged dramatically. Rack densities have escalated from 6-12 kW to around 140 kW, with 600 kW systems expected to debut next year. Additionally, AI workloads introduce variable energy demands, making it challenging for grid operators to accommodate sudden spikes quickly.
Regulatory Challenges and Solutions
Compounding these issues, the permitting process for grid improvements in Europe has been slow. The European Commission has proposed regulations to limit this process to no longer than two years. However, energy infrastructure remains scarce, as turbine manufacturers struggle to meet demand.
Alternative Energy Sources in Response to Challenges
In light of these energy constraints, Amazon and other cloud providers are exploring alternative energy sources to power their facilities. Last year, Amazon acquired the Talen Energy Cumulus data center campus situated near a nuclear power plant. Other major tech companies, including Microsoft and Meta, are also investing in projects to extend the operational life of aging nuclear reactors.
Furthermore, there is increasing interest in startups developing small modular reactors (SMRs), which could potentially be integrated with data centers if proven commercially viable. Given that optimistic timelines for mass production of SMRs are pushed to the 2030s, securing a seven-year connection timeline may be the more feasible option for the time being.
