Data centres are becoming a growing test for Denmark’s green transition, as rising electricity and water demand from AI infrastructure prompts calls for stronger EU rules from the Danish industrial group Grundfos.
The debate follows new projections showing that data centres could take up a much larger share of Denmark’s electricity consumption over the next two decades. According to figures reported by TV 2 and based on Danish energy authorities, around 4% of Denmark’s electricity use currently goes to data centres. That share is expected to rise to 8% by 2030 and almost 13% by 2040.
Grundfos wants EU standards before data centre growth accelerates
Grundfos, one of Denmark’s best-known industrial companies and a major producer of pumps and water technology, is not calling for a halt to data centre construction. Its argument is narrower: if Europe wants to expand AI and cloud infrastructure, data centres must be planned, built and operated with stricter rules on energy and water efficiency.
In a new policy paper, the company warns that Europe’s digital ambitions may be constrained not only by chips or computing capacity, but by water, cooling systems, electricity grids and climate targets. Grundfos argues that the EU should treat water and energy as linked resources in data centre policy, rather than regulating them separately.
The company’s recommendations include stronger public reporting on power and water use, clearer efficiency standards, faster permitting for facilities using best-in-class green technology, and support for retrofitting existing sites. For Grundfos, this is also an industrial question: efficient cooling, heat reuse and water management are areas where European companies can build a competitive advantage.
AI data centres put pressure on Denmark’s electricity system
The Danish debate reflects a broader European concern. AI infrastructure requires dense computing power, and that power needs constant cooling. TV 2 reported that AI-related data centres can use around 19,000 cubic metres of water per day for cooling — more than 100 families use in a year.
Electricity demand is the central concern for Denmark. The country is trying to electrify transport, heating and industry while expanding renewable energy. If data centres absorb a growing share of available green power, less electricity may be available for other parts of the transition unless new renewable capacity and grid infrastructure are built quickly enough.
Brit Ross Winthereik, professor of digital infrastructure at the Technical University of Denmark (DTU), warned that the rising demand could complicate the shift of businesses and industries from fossil fuels to renewable electricity. The challenge is not only the amount of energy, but the timing: new wind farms, grid upgrades and large energy projects can take years to approve and build.
Why Denmark is attractive to tech companies
Denmark has become attractive for large digital infrastructure projects because of its renewable energy profile, political stability and strong grid connections. But these same advantages are now part of the policy dilemma.
Using cheap green electricity to attract global tech companies can support investment and digital capacity. At the same time, it raises questions about whether Denmark’s renewable energy should be prioritised for domestic industry, households and the broader decarbonisation of the economy.
This is why the data centre debate touches a sensitive point in Danish energy policy. The country’s green transition depends on producing more clean electricity, but also on deciding how that electricity should be allocated. Data centres are not ordinary commercial buildings: they can become large, constant electricity consumers concentrated in specific locations.
The EU is already moving towards tougher data centre rules
The issue is not limited to Denmark. The European Commission says data centres are a fast-growing part of Europe’s infrastructure and have a significant environmental impact, especially because of their electricity needs, cooling water and emissions if power is not fully decarbonised.
Under the EU Energy Efficiency Directive, operators of large data centres already face reporting obligations. The EU executive has also prepared a European database and is working on a rating scheme to compare data centre performance, including indicators linked to energy use, water use, renewable energy and waste heat reuse.
This is the policy space Grundfos is trying to influence. The company’s message is that Europe should not wait until local opposition grows around power demand, water use or grid bottlenecks. Clear EU-wide rules could make the sector more predictable and reduce the risk that data centre expansion undermines climate targets.
Denmark’s data centre debate is becoming an EU question
For Denmark, the core issue is no longer whether data centres will grow. They will. AI, cloud computing and digital services are now central to the European economy.
The question is whether that growth can be made compatible with renewable energy expansion, grid capacity and water protection. Grundfos is framing the issue as a governance test: Europe can scale AI infrastructure, but only if it sets rules that make efficiency the default.
That makes Denmark an early example of a wider European challenge. Countries that want to be both digital leaders and climate frontrunners will need to decide how much green electricity should go to data processing — and under what conditions.
