Europe’s battle for power spurs evolution of a new ecosystem for energy-hungry firms
Electric grid is seen in Krakow Poland as Polish government lifts cup in electricity prices what is expected to rise inflation once more – January 18,2025. Poland has one of the highest inflations in Europe. (Photo by Dominika Zarzycka/NurPhoto via Getty Images)
Nurphoto | Nurphoto | Getty Images
The boom in artificial intelligence, a pressing need for more data centers and the energy transition story — particularly in transportation — are all spurring demand for electricity, and the existing power infrastructure is struggling to keep up.
Businesses are facing five to eight-year wait times to connect to Europe’s ageing and strained electricity grids, experts told CNBC, as the emergence of new areas of demand drives an unprecedented rise in permit requests for power. According to the IEA, at least 1,500 gigawatts of global clean energy projects have been stopped or delayed because of a lack of grid connections and about $700 billion of grid investment is needed for countries to meet their green goals.
Data centers, the large facilities that house servers for computing processes and often require huge amounts of power, are the “primary director” of that growing competition to connect to the grid, said Diego Hernandez Diaz, partner at McKinsey.
He told CNBC that clients have quoted wait times of up to eight years to connect to the grid.
“There are certain transmission system operators in Europe, that are already facing two, three or more folks all attempting to interconnect to the same node at the same time. … There is a literal queue within individual connection points to see who gets to connect first,” he explained.
Hernandez, whose work focuses on electro-intensive industries, said that over the last 18 months, nearly all of his work has focused on data centers, a sector that he expects to grow at an annual compound growth rate of 20% over the next six years. Demand for the facilities required to train large language models (LLMs) is expected to continue its exponential increase as tech giants race to dominate in AI.
Energy management firm Schneider Electric warned in a January report that Europe faces a looming power crunch, with three to five-year waiting lists for grid connections in energy-constrained regions.
We’re going from a situation where you have one application or two applications per year, in some countries to 1,000.
Steven Carlini
Chief advocate of AI and data center
“It’s kind of a race,” Steven Carlini, chief advocate of AI and data centers at Schneider Electric, told CNBC. “You have all these companies that are trying to deploy as much capacity as they can. But it’s constrained by the number of GPUs [graphics processing units] and the available power and the permitting.”
“We’re going from a situation where you have one application or two applications [to connect to the grid] per year, in some countries, to 1,000,” Carlini said.
It’s not just the amount of investment needed — but also the speed with which it can be deployed — which will be key to addressing the issue, McKinsey’s Diaz said. He also pointed to the growing complexity of the work of high-voltage grid operators and the example of Germany, which needs to go from building 400 kilometers of power lines a year to 2,000 kilometers.
Diaz sees the competition to connect to the grid “either maintaining or intensifying” in 2025.
Jerome Fournier, director of innovation at subsea cable manufacturer Nexans, said his firm has a “huge” order backlog in the range of seven-to-10 billion euros ($7.28 billion-$10.40 billion). Nexans’ cables are used to transmit electricity generated by wind and solar farms, and to supply power to homes and businesses.
“Everybody’s considering: do we still have some room in our plans to manufacture other projects?” he said.
Fournier told CNBC that firms like Nexans should also keep slots available for smaller projects such as interconnections for offshore wind turbines. “You’ve got to have the right balance between the load of the plans, the profitability and this type of electrification,” he said.
A new power ecosystem
Power constraints are leading data center operators to evolve their own “ecosystem of power backup,” according to Schneider Electric’s Carlini.
In the future, data centers are expected to be at the center of that grid ecosystem, particularly if they are able to generate their own power with small modular reactors — mini nuclear reactors that produce electricity.
Battery storage and strategic charging are also becoming increasingly important, Carlini said. These systems allow for the temporary storage of energy from the power grid to provide extra backup.
The CEO of power solutions provider AVK, Ben Pritchard, said some European countries are facing large, 100-megawatt grid connection requests of a size that they’ve never seen before.
He advocates for transition-linked energy solutions such as the use of microgrids, which are a separate islanded power system.
In Norway, they’re trialing flexible connection agreements where customers limit their connection to the grid based on certain conditions, Beatrice Petrovich, senior energy and climate analyst at think tank Ember, highlighted. This allows them to adjust their energy usage depending on how the grid is faring at certain times.
Ember also called for the implementation of rules on what it calls “anticipatory” grid investments. These would allow electricity grid operators to plan in a forward-looking way, taking into account the market trends of key technologies, such as growth in renewables and battery storage, Petrovich explained.
Countries that move forward with improving legislation on enabling firms to have a fully decarbonized energy stack will be the “winner of the race,” putting forward a more “friendly ecosystem” around data centers, AVK’s Pritchard said.
Ultimately, a bottleneck in the grid “encourages people to think differently, and when people are encouraged to think differently, they’re more open to different solutions. That, I think, is teeing up for the market to shift quite significantly,” said Pritchard.
Modest EU growth
Despite a growing need for power from some new and developing industries, Europe is still lagging behind the rest of the world when it comes to growth in power demand. High electricity prices and operational costs are hampering overall demand in the region, leading to a more fragmented market.
The International Energy Agency (IEA) this month hailed the rise of a “new Age of electricity,” as it upped its forecasts for global demand, predicting growth of 3.9% for 2025-2027 — the fastest pace of growth in recent years.
The forecasts for Europe are more modest, however. Following two years of sharp declines in power demand, the region saw an increase of just 1% in 2024, according to a January report from energy think tank Ember.
“2024 marks a turning point for electricity demand,” said Ember’s Petrovich, one of the authors of their report. “What we saw is the first rebound — even if it was a small rebound after many years of decline — it was widespread across the block.”
McKinsey’s Diaz explained that since the energy crisis sparked by Russia’s invasion of Ukraine and the subsequent sanctions, electricity prices have settled around 60 to 80 euros per megawatt hour. This is still 50-100% more expensive than prices seen in the previous two decades, however.
As a result, costs for consumers have soared, leading to signs of a deceleration in demand for heat pumps and electric vehicles, he said.
Diaz added that for manufacturers in Europe, the energy requirements “tower above those of any other geography in the world, it’s not only potentially more expensive, but even potentially more challenging,” Hernandez said.
The “unprecedented” growth in data centers is “helping the overall curve ever so slightly, but everything else is fighting against it,” Hernandez said.
Toyota’s new electric SUV is a surprise hit in China. Starting at just $15,000, the Toyota bZ3X is already the top-selling joint venture brand EV.
The $15,000 Toyota bZ3X is the top-selling foreign EV
After launching the bZ3X in March, Toyota’s joint venture, GAC Toyota, claimed that orders were “so popular that the server crashed.” It apparently secured over 10,000 orders in the first hour.
In its second month on the market, the bZ3X was the top-selling foreign-owned vehicle in China, beating out the Volkswagen ID.3 and ID.4 Crozz, Nissan N7, and BMW i3.
According to the latest update, the electric SUV retained the title once again in June. Peng Baolin, General Manager of Sales at GAC-Toyota, revealed on social media that the “delivery volume of Bozhi 3X in June reached 6,030 units.”
GAC Toyota announced on Weibo that cumulative deliveries have now exceeded 20,000 units, setting a new record for the fastest joint venture electric SUV sales to achieve the feat.
The company also claimed that the bZ3X “has the highest sales of new energy vehicles” among joint venture brands right now.
The bZ3X is Toyota’s “first 100,000 yuan-level pure electric SUV.” It’s available in seven different trims, starting at 109,800 yuan, or about $15,000.
Two variants have an added LiDAR, making Toyota the first joint venture brand to offer it in China. The smart driving version starts at 149,800 yuan ($20,500). For 159,800 yuan ($22,000), you can upgrade to the range-topping “610 Max” trim.
Powered by a 67.92 kWh battery, the long-range model is rated with a CLTC range of up to 610 km (379 miles). The base “Air” trim features a 50.03 kWh battery, good for a 430 km (267 miles) range.
The bZ3X measures 4,645 mm in length, 1,885 mm in width, and 1,625 mm in height, or about the size of BYD’s popular Yuan Plus (sold overseas as the Atto 3).
Inside is a significant upgrade from most Toyota models we are used to seeing. It features a tech-focused interior with a 12.3″ infotainment screen and an 8.8″ driver display.
Toyota markets it as an affordable family SUV with “a mobile space that is as comfortable as home.” With all the seats folded, the interior offers nearly 10 feet (3 meters) of space.
It’s also powered by Momenta’s 5.0 smart driving system, offering advanced smart driving features such as Level 2 assisted driving, remote parking, and more.
Electrek’s Take
Although it may not seem like much with Chinese EV makers like Xiaomi securing nearly 300,000 orders for the YU7 SUV in an hour, the bZ3X is selling surprisingly well for a foreign brand vehicle.
Global automakers are struggling to keep pace in China with an influx of new low-cost domestic EVs and an intensifying price war. However, Japanese automakers, including Toyota, have been some of the hardest hit.
During GAC Toyota’s Tech Day event last month, the company announced partnerships with China’s leading tech companies, including Huawei, Xiaomi, and Momenta, as it seeks to regain market share.
Ahead of the event, the company posted on Weibo that “god-level allies are coming to help,” adding “car industry bigwigs are coming.
Through May, Toyota’s sales in China are up 7.7% from the same period last year, with 530,000 vehicles sold. Will Toyota continue gaining traction in the world’s largest EV market? With the bZ5 now rolling out and several new models on the way, Toyota is looking for a comeback.
Source: Sohu, GAC-Toyota
FTC: We use income earning auto affiliate links. More.
If you’re planning a summer camping trip or backyard cookout, or just want to be prepared for future blackouts, BLUETTI has you covered this Prime Day with up to 65% off portable power stations. And two standout models are turning heads: the all-new Elite 100 V2 and the powerhouse Elite 200 V2.
Electrek readers get an exclusive extra 5% off sitewide with the promo code ELECTREK5OFF, but act fast! These fantastic Prime Day deals only run until July 11.
Compact powerhouse: Elite 100 V2 (now in pre-order!)
Meet the newly launched Elite 100 V2 – BLUETTI’s latest iteration of the AC180 portable power station that packs serious performance in a smaller frame. It’s about 30% smaller than the AC180 yet still delivers a mighty 1,800W output and 3,600W surge capacity. That’s more than enough to handle your coffee maker, induction cooktop, and even a portable AC unit.
With 11 versatile outlets and 1,000W solar input, this little powerhouse is perfect for camping trips, picnics, tailgates, or short-term home backup. It recharges in as little as 70 minutes, making it ideal for quick outdoor stops or unexpected power cuts.
The Elite 100 V2 is available now for pre-order at the early-bird price of $399 plus an extra 5% off on Amazon and at Bluetti’s official store.
The backyard hero: Elite 200 V2 for just $699 (52% off!)
This one’s a total game-changer. With a massive 2,048Wh capacity and 2,400W output (3,900W surge), the BLUETTI Elite 200 V2 powers everything from electric grills and coffee makers to portable fridges and full camping kitchens. It’s great for family cookouts, rooftop movie nights, or camping with serious gear.
The best part? It runs at just 16dB, which is whisper quiet. And inside is a true EV-grade battery with a whopping 17-year lifespan. That’s power you can count on for the long haul.
The Elite 200 V2 is down to just $699 for Prime Day – that’s 59% off and the lowest price ever(!) on Amazon and at BLUETTI’s official store.
More Prime Day BLUETTI power deals until July 11
BLUETTI is going big this year with deep discounts across the board. Here are some more hot picks:
- AC70: Ultra-portable 768Wh station ideal for weekend outings, charging phones, laptops, and drones. $299 (50% off) on Amazon and on BLUETTI’s official store
- AC2A: Lightweight 204.8Wh unit under 8 lbs, perfect for on-the-go charging essentials. $139 (37% off) on Amazon and on BLUETTI’s official store
- AC200L: 2,048Wh unit built for rooftop movie nights or long backyard parties, expandable to 7.6kWh. $899 (44% off) on Amazon and on BLUETTI’s official store
- AC300 + B300K: Modular home battery backup with 3,000W output and expandable capacity up to 22kWh $1,299 (48% off) on Amazon and on BLUETTI’s official store
- AC500 + B300K: High-capacity 5,000W home backup system designed for larger families and serious outage prep. $1,699 (43% off) on Amazon and on BLUETTI’s official store
Whether you need portable power for camping (Elite 100 V2) or a versatile 2kWh powerhouse for multiple uses (Elite 200 V2), or serious home battery backup (AC300 or AC500), there’s a perfect BLUETTI deal for you.
Price protection and bonus savings
Worried about buying early? Don’t be. BLUETTI is offering price protection through Prime Day. If prices drop further, they’ll refund the difference. And don’t forget to use promo code ELECTREK5OFF for an extra 5% off sitewide.
Summer adventures, blackouts, or weekend tailgates – whatever power solution you need, BLUETTI has a product to match. But act fast: these Prime Day deals end July 11.
About BLUETTI
BLUETTI is a committed advocate for sustainability, embedding ESG principles into product design and corporate initiatives. Through programs like LAAF (Light An African Family), it delivers affordable, sustainable energy to African communities. Partnering with Leave No Trace and the Footprint Project (a 501(c)(3) nonprofit), BLUETTI supports responsible outdoor recreation and disaster relief with clean energy solutions that minimize environmental impact. This blend of quality, reliability, and practical focus has earned trust in over 110 countries and regions.
Follow BLUETTI on Twitter/X here and on Facebook here.
FTC: We use income earning auto affiliate links. More.
Elon Musk told Tesla’s biggest cheerleader on Wall Street, Wedbush analyst Dan Ives, to ‘shut up’ and the reason why is absolutely ridiculous.
Dan Ives is one of the biggest pushers of Tesla’s stock on Wall Street. The Wedbush analyst can often bee seen on CNBC praising Tesla and its CEO, Elon Musk.
He has one of the highest price targets on Tesla on Wall Street with $500 price per share.
After Tesla’s deliveries came way under his expectations and down 13% year-over-year in the first quarter, he reiterated his price target, which would value Tesla at over $1.5 trillion.
That’s even though Tesla’s net earnings have steadily declined over the last 2 years, and it is on track to start losing money within the next year.
Ives’ faith in Tesla stock is solely based on Musk and his promises of self-driving vehicles and robots. Just last month, he said that “Musk is the best asset of Tesla. We see him as CEO until 2030.”
You would think that Musk would like this guy, but no.
Ives took to X today to suggest that Tesla’s board should give Musk a new pay package giving him 25% control over the company.
If that were to be given through more stock options, it would virtually double his stake in Tesla and represent a $200 billion payday for Musk. In exchange, Ives is only suggesting that Musk, who runs several other companies and projects, should commit to spending a certain amount of time at Tesla and that the board has oversight on his involvement in politics.
In response to the analyst, who is one of Musk’s biggest fans and is suggesting Tesla gives him $200 billion, Musk told him to “shut up”:
Musk is seen as having complete control over Tesla’s board, which led to the rescinding of his 2018 CEO compensation package. One of the points that the judge brought up was that Tesla never even negotiated with Musk about committing his time at Tesla as part of the compensation package despite knowing the CEO already had roles at several other companies.
Now, Musk is also launching his own political party, in addition to his roles at SpaceX, X, xAI, The Boring Company, and Neuralink.
Electrek’s Take
Even Dan, who is a complete Musk sycophant, is not a big enough sycophant for Musk.
How do you tell a guy suggesting Tesla give you $200 billion to “shut up” just because he added some very mild conditions? What’s his thinking here? How dare he ask the board to do its job and supervise me? Doesn’t he know that I own the board?
The remarkable thing is that you know Musk could easily circumvent any conditions imposed by the board, and the mere fact that those conditions would have been in the contract could have helped it avoid being rescinded in the first place.
Musk’s behavior makes no sense. Honestly, he appears to be increasingly disconnected from reality.
FTC: We use income earning auto affiliate links. More.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike