EU and Portugal Tackle Speculative Data Center Connection Requests
The EU is addressing speculative grid connection applications amid rising data center demand, with Portugal leading by example. The initiative aims to prioritize genuine projects and reduce ghost capacity in the grid system.
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The European Union is developing measures to combat speculative grid connection applications, which have surged due to increased demand for data centers and AI. Portugal's model requires substantial deposits for connection requests, significantly decreasing speculative applications.
In Italy, connection requests have exceeded 80 Gigawatts, yet only one project is expected to materialize by 2028. Turner & Townsend suggests that Italy needs a system to vet serious operators. Current Italian projects amount to approximately 500 Megawatts, with an additional 800 Megawatts in the pipeline. The recent Energy Decree introduces expedited permit processes, but operational certainty remains a key concern for investors.
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