Data Centers, energy efficiency, and the importance of working together

Stijn Grove, Director, Dutch Data Center Association

Today, the demand for data center services is greater than ever, driven by digitalization, associated automation, and developments in AI. More and more data centers are being built, which are increasing in size. Primary and secondary processes, such as cooling, require significantly more electricity. What’s more, AI chipsets consume more energy than traditional chipsets, which brings several challenges. 

Ten years ago, requesting a connection to the power grid was not a problem. However, the situation has changed dramatically. I believe we need to adopt an integrated approach to solve grid congestion. The data center sector can propose effective solutions, but this requires close collaboration with the government and grid operators. As an industry association, we’re aiming to work with these parties in new ways to create solutions and breakthroughs. 

A traditional mindset regarding infrastructure is leading to stagnation. Spatial, economic, and energy planning are more or less separate silos and need to be integrated. That would allow us to think more holistically and unlock a vast amount of grid capacity through smart solutions. For example, when planning a data center build, a logical location within the energy network needs to be determined. Data centers are stable energy users with minimal extreme peaks and can be placed close to one another, near an energy source, or close to parties that can efficiently utilize excess heat. In this way, we can reduce energy consumption and CO₂ emissions. 

A proven effective solution is to connect data centers to one single transformer, instead of two. Because a data center has emergency power in place, potential outage is an acceptable risk. An approach of this type might instantly free up hundreds of megawatts. By consolidating and centralizing data center functionalities, energy consumption and cooling can be managed more efficiently, too. However, these solutions require an adapted energy infrastructure and a new mindset among stakeholders. It is crucial for all parties involved to have a clear understanding of their energy consumption and needs. This allows them to optimize operations and, by sharing this data—possibly anonymized—they can work together to manage energy use more intelligently. 

Flexibility is key 

Electricity distribution in the Netherlands is highly regulated to ensure supply under all circumstances. However, this strict regulation makes it difficult to keep up with changes in energy consumption and developments in the digital economy. Distribution networks, for example, should be able to expand cable and substation capacity much faster.

Grid operators are now warning that we should no longer take the availability of power for granted. But what is the point of strict regulation if power is not always available? In the coming years, the province of North Holland will not be able to get new grid connections. Developments like that are harmful to the European economy—we need to make sure that we don’t become a kind of open-air museum. Ninety percent of data centers affiliated with the DDA use sustainable energy, yet there is insufficient generation and distribution capacity in the Netherlands. Renewable energy sources must be integrated at a much faster pace. 

The government continues to emphasize innovation, and this is unlikely to change anytime soon. However, certain conditions need to be met for this to be successful. The data center sector is a frontrunner in innovation—both with regard to energy efficiency within data centers and in the use of sustainable electricity. We are currently in a very challenging period with many changes, which is quite exciting. However, this also means we have to think, collaborate, and act in new ways. The grid congestion agreement between water boards and grid operators in the Netherlands—which includes arrangements that enable both parties to continue their operations in spite of growing electricity demand—is a step in the right direction. 

“I worked in IT and the data center sector for several years. At a certain point, I thought it was strange that such a large, important, and capital-intensive sector didn’t have powerful professional representation. That’s why I founded the Dutch Data Center Association in 2015. In 2025, we’re celebrating our 10th anniversary. Today, our organization has ten employees. As Director, I proudly represent the Dutch data center sector. Additionally, we encourage foreign companies—from startups to multinationals—to establish themselves in the Netherlands and take advantage of our unique digital network.”

Scroll to Top