Gold prices hit 2-mth low as fresh US-Iran hostilities boost oil, dollar
Investing.com -- Europe’s datacenter industry could be entering a major expansion phase as artificial intelligence drives higher electricity demand across the region.
Goldman Sachs said the UK’s National Grid is preparing for up to 10 GW of datacenter demand to be connected to the power grid by 2031, a scenario that could increase UK electricity consumption by as much as 25%.
The brokerage also estimated Europe could reach 60-75 GW of datacenter capacity by 2035 depending on AI adoption rates. Goldman Sachs identified SSE plc, RWE, and Ørsted as the stocks most exposed to the theme.
SSE plc
Goldman Sachs said SSE remains one of the UK stocks “most exposed” to the datacenter theme as the country prepares for a significant increase in electricity demand linked to AI and datacenter growth. The report highlighted expectations that datacenter rollouts could materially boost power consumption in the UK and Europe over the coming decade.
RWE
Among the companies mentioned in the report, Goldman Sachs gave the strongest endorsement to RWE, stating that “RWE is by far the most positively exposed” stock in Europe to the datacenter and electrification trend. The report connected this opportunity to broader European trends including AI adoption, rising power demand, and increased investment in electricity generation and grids.
Ørsted
Goldman Sachs also identified Ørsted as one of the UK market stocks “most exposed” to datacenter-driven electricity demand growth. The report said Europe’s energy policy is increasingly shifting toward electrification and energy security following repeated energy crises, trends that Goldman Sachs believes will support higher long-term power consumption across the region.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.