AI boom thrusts Europe between power-hungry data centers and environmental goals
A large hallway with supercomputers inside a server room data center.
Luza Studios | E+ | Getty Images
The boom in artificial intelligence is ushering in an environmentally conscious shift in how data centers operate, as European developers face pressure to lower the water temperatures of their energy-hungry facilities to accommodate the higher-powered chips of firms such as tech giant Nvidia.
AI is estimated to drive a 160% growth in demand for data centers by 2030, research from Goldman Sachs shows — an increase that could come at a cost to Europe’s decarbonization goals, as the specialized chips used by AI firms are expected to hike the energy use of the data centers that deploy them.
High-powered chips — also known as graphics processing units, or GPUs — are essential for training and deploying large language models, which are a type of AI. These GPUs need high density computing power and produce more heat, which ultimately requires colder water to support reliable cooling of the chips.
AI can consume 120 kilowatts of energy in just one square meter of a data center, which is equivalent to the power consumption and heat dissipation of around 15 to 25 houses, according to Andrey Korolenko, chief product and infrastructure officer at Nebius, who referred specifically to the deployment of Nvidia’s Blackwell GB200 chip.
“This is extremely dense, and from the cooling standpoint of view you need different solutions,” he said.
The problem we’ve got with the chipmakers, is AI is now a space race run by the American market where land rights, energy access and sustainability are relatively low on the pecking order, and where market domination is key,” Winterson told CNBC
Michael Winterson
chair of the EUDCA
Michael Winterson, chair of the European Data Center Association (EUDCA), warned that lowering water temperatures will eventually “fundamentally drive us back to an unsustainable situation that we were in 25 years ago.”
“The problem we’ve got with the chipmakers is [that] AI is now a space race run by the American market where land rights, energy access and sustainability are relatively low on the pecking order, and where market domination is key,” Winterson told CNBC.
Major equipment suppliers in Europe say that U.S. chip designers are calling on them to lower their water temperatures to accommodate the hotter AI chips, according to Herbert Radlinger, managing director at NDC-GARBE.
“This is shocking news, because originally everybody from the engineering side expected to go for liquid cooling to run higher temperatures,” he told CNBC, referring to the technology of liquid cooling, which is said to be more efficient than the more traditional method of air cooling.
‘Evolution discussion’
Energy efficiency is high on the European Commission’s agenda, as it seeks to reach its goal of reducing energy consumption by 11.7% by 2030. The EU predicted in 2018 that energy consumption of data centers could rise 28% by 2030, but the advent of AI is expected to boost that number two or threefold in some countries.
Winterson said that lowering water temperatures is “fundamentally incompatible” with the EU’s recently launched Energy Efficiency Directive, which established a dedicated data base for data centers of a certain size to publicly report on their power consumption. The EUDCA has has been lobbying Brussels to consider these sustainability concerns.
Energy management firm Schneider Electric engages often with the EU on the topic. Many of the recent discussions have focused on different ways to source “prime power” for AI data centers and for the potential for more collaboration with utilities, said Steven Carlini, chief advocate of AI and data centers and vice president at Schneider Electric.
European Commission energy officials have also had exchanges with Nvidia to discuss energy consumption and the use of data centers with regard to the effectiveness of power use and that of chipsets.
CNBC has approached Nvidia and the Commission for comment.
“Cooling is the second-largest consumer of energy in the data center after the IT load,” Carlini told CNBC in emailed comments. “The energy use will rise but the PUE (Power Usage Effectiveness) may not rise with lower water temperatures despite the chillers having to work harder.”
Schneider Electric’s customers that are deploying Nvidia’s Blackwell GB200 super chip are asking for water temperatures of 20-24 degrees Celsius or between 68 and 75 degrees Fahrenheit, Carlini said.
He added that this compares to temperatures of around 32 degrees Celsius with liquid cooling, or of around 30 degrees Celsius that Meta has suggested for the water it supplies to the hardware.
Ferhan Gunen, vice president of data center operations for the U.K. at Equinix, told CNBC that there are a number of concerns about AI that Equinix has been discussing with its customers.
“They want to increase the density of their servers, which is, they want to have higher-power-using chips, or they want to have more servers,” she said, adding that the shift is not “clear cut.”
“It’s really an evolution discussion more than anything,” Gunen said.
Nvidia, which declined to comment on the cooling requirements of its chips, announced a new platform for its Blackwell GPUs earlier this year. It said that the architecture would enable organizations to run real-time generative AI on large language models at up to 25 times less cost and energy consumption compared to earlier technology.
Liquid cooling will require a “reconfiguration,” Gunen explained, adding that new data centers are already coming ready with this technology. “Yes, higher density will mean more power use, and will also mean more cooling requirement. But then the technology is changing, so you’re doing it differently. That’s why there is a balance in all of this,” she said.
Race for efficiency
Nebius, which has around $2 billion in cash on its balance sheet after splitting from Russia’s Yandex, has said it will be one of the first to bring Nvidia’s Blackwell platform to customers in 2025. The firm has also announced plans to invest more than $1 billion on AI infrastructure in Europe by the middle of next year.
Nebius’ Korolenko said liquid cooling is a “first step,” where cost of ownership will initially be worse before improving over time.
“There’s a big push to deliver, but at the same time, when you go to scale, you will want to have the ability to choose, to be economical and not sacrifice too much. Power efficiency is important for the running costs. It’s always a high priority,” Korolenko said.
Even before a boom in demand for AI applications hit the market, the data center industry in Europe was struggling to keep pace with the growing digital sector.
Sicco Boomsma, managing director of ING’s TMT team, said those involved in the market are “very sensitive to power” and that while Europe’s focus is on infrastructure, the U.S. has focused more on expanding assets in Europe where power is available.
“There’s a tremendous amount of data center operators also coming from the U.S. that are aligning in order to ensure that their data center infrastructure is in line with the various goals that the EU has as well, such as being carbon neutral, such as being efficient, on water utilization, maintaining biodiversity.”
“It is a sort of a race where they want to demonstrate that their knowledge is leading to super efficient infrastructure,” he said.
Dodge is calling it the “world’s only” four-door muscle car. The four-door Dodge Charger Daytona EV will join the lineup for the 2026 model year, but that’s not the only change.
Dodge Charger Daytona EV adds four-door trim for 2026
Last week, we learned Dodge would not offer the entry-level Charger Daytona R/T in 2026. CEO Matt McAlear told Motor1, “Production of the Dodge Charger Daytona R/T is postponed for the 2026 model year as we continue to assess the effects of US tariff policies.”
It looks like Dodge has another idea. The four-door electric Charger officially debuted Wednesday during a first drive event in Elkhart Lake, Wisconsin.
According to McAlear, the new sedan “embodies the same look and feel as the coupe, with the same widebody exterior, driver-centric interior, muscle car performance and standard all-wheel-drive capability, combined with four-door practicality.
The two and four-door models share a similar coupe-like design and a wide body (the widest of any car in the industry). Dodge said the four-door design only further accentuates the Charger’s powerful presence.
Like the two-door version, the four-door model arrives with a spacious “hidden hatch” interior, boasting best-in-class rear cargo and passenger space. With up to 38.5 cu ft of rear cargo space, the four-door variant offers 133% more than the outgoing Charger.
Meet the world’s only four-door muscle car
The interior features a 16″ infotainment system at the center with a 12.3″ driver display, featuring wireless Android Auto and Apple CarPlay capabilities.
Both two and four-door 2026 Charger Daytona Scat Pack models come with different drive modes (sport, track, drag, custom, etc.), Dodge’s Fratzonic Chambered Exhaust system, and Powershot (delivering an extra 40 hp for 10 seconds at the push of a button).
The available Track Package is the largest brake package offered for any Dodge vehicle. It adds 16″ Brembo vented rotors and red six-piston front/four-piston rear fixed calipers, which increase swept area by more than 30% compared to the outgoing SRT model.
With a level 3 charger, the 2026 Dodge Charger Daytona EV can recharge from 20% to 80% in as little as 24 minutes.
New “Fratzog dual stripes” and gloss paint hood options will be available on two and four-door 2026 Dodge Charger EV models.
For every 2026 Charger model (two- and four-door), Dodge is offering the chance to visit Radford Racing School for a day, the official high-performance driving school of Dodge and SRT.
Both variants offer “Hellcat Redeye levels of performance,” with 670 hp and 627 lb-ft of torque, capable of a 0 to 60 mph sprint in just 3.3 seconds.
Orders are now open for the four-door and two-door 2026 Dodge Charger Daytona EV and will begin arriving at dealerships later this year.
To make room for the 2026 models, Dodge is offering massive discounts, with up to $13,500 off on the outgoing Charger Daytona EV. If you’re interested, you can use our link to view 2025 Dodge Charger Daytona models near you today.
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All-electric, autonomous aircraft developer Wisk Aero announced a fresh five-year research partnership with NASA to establish advanced air mobility standards to eventually introduce autonomous aircraft into the National Airspace System (NAS).
Wisk Aero is a wholly owned subsidiary of Boeing based in California. The company’s flagship model, the Cora, is an all-electric aircraft that predates the Wisk Aero brand and has seen several generational variants over the seven years or so.
In 2020, Wisk Aero joined NASA’s Advanced Air Mobility Project, part of the space administration’s Aeronautics Research Mission Directorate, to address key AAM industry challenges and lay the framework for future autonomous passenger flights.
Since then, Wisk and NASA have continued collaborating to develop key guidance for the safe integration of autonomous aircraft systems for urban air mobility (UAM) operations under that initial Space Act Agreement.
This week, Wisk Aero and NASA committed another five years to their research partnership. They hope to bring regulated and autonomous aerial flight to the public by the end of the decade.
Wisk and NASA extend partnership another five years
Wisk Aero shared details of its refreshed partnership with NASA this week. The autonomous aviation specialist has signed a new five-year Non-Reimbursable Space Act Agreement (NRSAA) with the renowned space administration.
Per Wisk, this new agreement focuses on critical research led by NASA’s Air Traffic Management Exploration (ATM-X) project, which is centered around the advancement of commercialized autonomous aircraft travel under Instrument Flight Rules (IFR) in the National Airspace System (NAS).
As a specialist in autonomous, zero-emission aircraft, Wisk intends to continue its research alongside NASA to help regulators determine future eVTOL flight procedures and capabilities in the US. Regulatory developments on the to-do list for the latest NRSAA include optimizing airspace and route designs for highly automated UAM operations, establishing critical aircraft and ground-based safety system requirements for autonomous flight in urban environments, and establishing Air Traffic Control (ATC) communication protocols and procedures for seamless integration of future UAM aircraft.
To achieve these goals, Wisk said its research with NASA will more specifically focus on utilizing advanced simulation and Live Virtual Constructive (LVC) flight environments, which combine live flights with a simulated airspace to enable researchers to assess future operations. Erick Corona, Director of Airspace Operational Integration at Wisk, elaborated:
This new, long-term agreement with NASA is a significant step forward for Wisk and the broader UAM industry. With NASA’s simulation and LVC capabilities, we can accelerate the development of our Gen 6 autonomous systems to safely and efficiently integrate into the US NAS before the end of the decade.
The teams from Wisk and NASA already met last month, continuing their research while beginning to determine how instrument flight procedures and advanced technologies can work together to enable safe autonomous passenger flights by 2030.
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Fluence Energy has officially started production at its new factory in Goodyear, Arizona, where it’s now cranking out steel enclosures and battery management system (BMS) hardware for its grid-scale energy storage systems.
This plant is part of the Washington, DC-headquartered global battery storage company’s larger push to build and source every major part of its battery energy storage systems in the US. The company’s domestic supply chain spans Arizona, Texas, Tennessee, and Utah, covering everything from battery cells and thermal systems to Fluence’s inverter supplier in South Carolina.
The partnerships represent around $700 million in investment and more than 1,200 manufacturing jobs in 2025 alone. Add another 450 construction jobs and growing, a significant economic spark.
John Zahurancik, president of Fluence Americas, says the rapidly expanded domestic supply chain helps customers steer clear of global supply chain snarls while ensuring the company’s systems stay safe, reliable, and cybersecure. “Enclosure and BMS production at the Goodyear facility is another strong step forward in this commitment,” he said.
The American Clean Power Association (ACP) recently unveiled the US energy storage industry’s bold plan to invest $100 billion into American-made grid batteries by 2030. The goal is to meet 100% of domestic energy storage demand using US-based supply chains and create 350,000 jobs in the process.
“Fluence is leading the way,” said ACP CEO Jason Grumet. “Their investment in Arizona – a national leader in energy storage – underscores the momentum behind expanding US manufacturing, strengthening energy security, creating high-quality jobs, and supporting key suppliers, including American steel.”
Fluence’s products will also be critical in helping to keep the grid stable as the demand for power rapidly increases. The company already has more than 20,000 megawatt-hours of battery storage deployed or in the pipeline across 80+ projects in the US.
“Our goal is to fully onshore production, as quickly as possible,” said Peter Williams, Fluence’s chief product and supply chain officer. “This facility brings us closer to that goal.”
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