Electricity demand in the European Union, despite reduced industrial activity and high energy costs, has increased by 0.5 percent in 2025. This growth occurs at a time when electricity demand had increased by 1.9 percent in 2024. According to analysts, rising electricity rates and the boom in data centers are among the key factors driving this new trend in electricity demand in Europe.
Impact of Climate Change on Electricity Demand
In the past year, major European countries such as Germany, Italy, and Spain witnessed growth in electricity demand in most months. Additionally, countries like Portugal and the Nordic countries have also experienced significant growth in electricity consumption this year. These changes are particularly influenced by severe heatwaves last summer, which led a higher percentage of households to adopt air conditioning systems. According to data from the International Energy Agency, last year, 23 percent of European households had air conditioning systems.
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Upward Trend in the Electric Vehicle Market
Sales of electric vehicles (BEVs) have also taken an upward trend under these conditions. According to recent reports, electric vehicle sales in Europe, including the UK, Switzerland, and Norway, increased by 52.2 percent in August compared to last year. This sales increase is attributed to high fuel prices and buyers' inclination towards electric and hybrid vehicles. Currently, the maintenance costs of electric vehicles are on average 50 percent lower than those of gasoline and diesel vehicles.
On the other hand, the capacity of data centers in Europe is also increasing. It is expected that the markets in the UK and Germany will remain the largest data center markets in Europe by 2035, with 7.7 gigawatts and 5.1 gigawatts, respectively. Overall, the electricity capacity of data centers in Europe is expected to exceed 30 gigawatts by 2032 and reach 39 gigawatts by 2035.
With the increasing demand for electricity, electricity supply is increasingly shifting towards renewable energy sources. In the European Union, electricity generation from solar energy surpassed that from coal in 2024. This increase in renewable energy production puts more pressure on Europe's electricity grids, necessitating significant investments to upgrade infrastructure. According to estimates, between $2.25 trillion and $2.6 trillion in investments will be needed to meet grid demands by 2050.
