Data Centers Are Outgrowing Europe’s Clean Power Deals
Kazakhstan Won’t Enforce $1.4B Gazprom Asset Seizure Rystad Energy is an independent energy consulting services and business intelligence provider offering global databases, strategic advisory and research products for energy companies and suppliers,… European data center power purchase agreement (PPA) volumes fell from 4.2 gigawatts (GW) in 2024 to 2.6 GW in 2025, even as capacity buildout accelerated sharply.
The drop reflects offshore wind delays and increased challenges in agreeing on PPA price points due to falling capture rates and rising frequency of negative wholesale power price hours, particularly for solar PV.
In addition, the race to secure power has led some major hyperscalers to reassess their clean energy ambitions, moderating one of the key demand signals that had supported European renewable PPA activity.
The gap between surging capacity and declining PPA activity raises urgent questions about how new data center load will be powered.
European data center capacity is forecast to grow from 16 GW in 2024 to 36 GW by 2030, with about 12 GW added in the final two years alone, matching total European capacity as recently as 2022.
The primary driver is surging demand for artificial intelligence (AI) compute, which is pushing hyperscalers and co-location operators to scale aggressively across the continent.
The UK, Germany, France, and the Netherlands attract the largest new capacity volumes, but growth is increasingly distributed.
Ireland, Spain, Sweden, Norway, Italy, and Finland are all gaining share as operators move beyond congested primary hubs where grid and permitting constraints are extending timelines.
The Nordic countries are particularly competitive, offering abundant low-carbon hydropower and lower ambient temperatures that reduce cooling costs.
Annual PPA volumes have trended downward over the past two years.
Offshore wind – previously the largest-volume segment – has been hit hardest: signed volumes fell from 1.35 GW in 2024 to 0.5 GW in 2025 and reached just 100 megawatts (MW) in the first quarter of 2026, representing a single Google offtake from EnBW's He Dreiht farm in Germany.
Solar PV deals have also contracted, weighed down by falling capture rates and a rising frequency of negative wholesale price hours across key European markets.
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