Data Center Boom Outpaces Europe’s Clean Power Deals as PPA Volumes Slump
May 25, 2026
Data Center Boom Outpaces Europe’s Clean Power Deals as PPA Volumes Slump
The rapid expansion of European data center capacity, driven by surging demand for artificial intelligence, is increasingly colliding with a slowdown in renewable energy dealmaking, raising urgent questions about how the continent’s digital infrastructure will be powered. While data center capacity is projected to more than double from 16 gigawatts (GW) in 2024 to 36 GW by 2030, the volume of corporate power purchase agreements (PPAs) signed by operators has fallen sharply, exposing a growing gap between energy needs and clean power supply.
According to new analysis from Rystad Energy, European data center-related PPA volumes dropped from 4.2 GW in 2024 to just 2.6 GW in 2025, even as construction activity accelerated. The decline reflects a combination of structural headwinds, including delays in offshore wind projects, deteriorating solar economics due to falling capture rates and an increase in negative wholesale power price hours, and a widening pricing disconnect between developers and offtakers. Offshore wind, previously the largest PPA segment, saw signed volumes collapse from 1.35 GW in 2024 to 0.5 GW in 2025, and reached only 100 megawatts (MW) in the first quarter of 2026—a single Google offtake from EnBW's He Dreiht farm in Germany.
The capacity buildout is heavily concentrated in the UK, Germany, France, and the Netherlands, but growth is spreading to Ireland, Spain, Sweden, Norway, Italy, and Finland as operators move beyond congested hubs where grid and permitting constraints are lengthening timelines. Nordic countries are particularly competitive, offering abundant low-carbon hydropower and lower ambient temperatures that reduce cooling costs. Between 2024 and the first quarter of 2026, data center PPAs accounted for 20% of total European offtake, making them the second-largest buyer category after manufacturing and industrial customers.
The slowdown is also linked to a softening of clean energy commitments among major hyperscalers. Microsoft is reportedly reconsidering its 24/7 carbon-free energy pledge after rising emissions since its 2020 climate commitment, while Google has acknowledged it will be difficult to reach its hourly electricity consumption matching target by 2030. Amazon, Google, and Microsoft dominate the European PPA market, with Amazon alone signing more than 3 GW since 2024 across offshore wind, solar, and hybrid structures. Spain leads all markets with over 2 GW across 12 deals, anchored by Amazon's 596 MW hybrid agreement and Merlin Properties' 213 MW solar-plus-storage deal with Solaria Energia, signed on a reported record term of 40 years. The Netherlands ranks second, driven by large offshore wind contracts and Equinix's 250 MW nuclear PPA with ULC Energy.
The emergence of nuclear and hybrid structures in 2025 signals a shift in offtaker strategy as intermittent renewables alone prove insufficient for always-on data center loads. Looking ahead, the pipeline of projects scheduled for commissioning between 2026 and 2028—including Amazon and OX2's 367 MW Rajamenkyla wind farm in Finland and Nexwell Power's solar-plus-battery projects—will be a key indicator of whether data center demand can re-energize the PPA market. A recovery in offshore wind, particularly as delayed projects reach final investment decisions, would be the most significant catalyst for a return to 2024 volume levels. If hyperscalers revive firm clean energy commitments under regulatory or reputational pressure, demand for nuclear and hybrid structures, the formats most resilient in 2025, could accelerate further.
Source: oilprice
