A data center being offline for just a few hours can mean losses of hundreds of thousands or even millions of dollars. The “Annual Outage Analysis 2025” report by the Uptime Institute highlights a paradox in the industry: although the overall frequency of outages and reported severity have decreased for the fourth consecutive year, their financial and reputational impact is becoming increasingly severe. In 2024, more than half of the surveyed organizations (54%) reported that their most recent significant outage exceeded $100,000, and one in five reported losses of over $1 million.

What have the past few years really looked like for data center operators in terms of operational disruptions? Beyond charts and statistics, every percentage point hides real stories—high-profile incidents and major financial losses that demonstrate just how fragile the balance between availability and downtime can be.

Energy, the “Achilles’ Heel” of the Data Center Industry

Even though only 9% of incidents reported in 2024 were classified as serious or severe—the lowest level ever recorded by Uptime—power remains the “Achilles’ heel” of data centers, accounting for more than half (54%) of major-impact outages. The numbers become even more telling when placed alongside real-world cases—let’s look at a few concrete examples.

In October 2023, a failure in the electrical distribution system at a Microsoft data center in the Netherlands caused an outage of nearly two hours , after the switchover from the public grid to backup generators partially failed. The incident impacted key Azure services—from App Service and SQL DB to storage and virtual machines—and about 1% of racks lost power. Full recovery took until the evening, with some storage accounts affected for several hours, directly impacting customers and critical services that depended on them. Microsoft did not disclose details about the financial impact of this outage.

Read the article “Power cuts, a major challenge for data centers” to explore some of the solutions and preventive measures recommended for operators.

Cooling, Network, and IT – the Next Major Risk Factors

The Uptime Institute report also shows that, after power, cooling systems (13%), networks (12%), and IT systems (11%) follow as leading causes of outages, confirming that critical infrastructure remains vulnerable precisely at the points where it should be strongest.

We already know that heatwaves are not a data center operator’s best friend. Back in July 2022, Google’s and Oracle’s London data centers  were hit by a record-breaking heatwave, with temperatures soaring above 40 °C, which caused failures in cooling systems. Oracle’s first announcement about the incident stated that “unreasonable temperatures” had affected its cloud and network equipment at its South London data center, causing outages throughout the day and impacting customers. Google, in turn, partially shut down cloud services for several hours as a protective measure to prevent equipment damage and prolonged downtime, affecting a small number of users and causing temporary unavailability for services such as WordPress web hosting in Europe.

A more unusual incident was recently shared by Rick Bentley, founder of Cloudastructure and Hydro Hash, which operates a hydro-powered crypto-mining data center. This one occurred in Montana, USA, where the data center “froze solid overnight” . The problem, in this case, was the rapid temperature drop from -6 °C to -34 °C in less than 24 hours. Bentley emphasized that, although the team believed it was prepared, the combination of extreme cold with a power outage made the incident unavoidable.

Complex IT Infrastructures Mean More Frequent Outages

As mentioned earlier, in 2024 nearly a quarter of major-impact outages were caused by IT and network issues—a trend explained by the increasing complexity of infrastructures and the risks associated with misconfigurations. Uptime Institute data confirms this: the most common causes of IT-related outages are network and connectivity problems (30%), IT systems and software (23%), power outages (18%), third-party IT services such as public cloud or SaaS (8%), and cooling issues (7%).

A representative case is the incident on July 20, 2025, involving Alaska Airlines. This highlights that the damage is not only financial but also reputational. The U.S. airline suffered a critical hardware failure in its data centers, which led to the grounding of all flights for about three hours, between 8:00 p.m. and 11:00 p.m. PT. The issue disrupted core flight operations and also affected its subsidiary, Horizon Air. As a result, on July 21, FlightAware data showed that 7% of flights (66) were canceled, while another 12% (110) experienced delays, leading to crowded airports and confusion among passengers. The hardware failure was reportedly caused by a third-party component, with the company stating it was working with the vendor to resolve the issue.

Operational Outages Caused by Human Error on the Rise

In 2025, outages caused by human error increased by 10 percentage points compared to 2024, with the most common cause being failure to follow procedures—possibly amplified by the industry’s rapid growth and staff shortages. Investments in employee training and real-time operational support can help mitigate these risks. According to Uptime Institute, over the past three years, the main causes of major human errors have been, in addition to not following procedures (58%), staff following incorrect processes (45%), understaffing (18%), insufficient preventive maintenance (16%), and omissions in data center design (14%).

A Final Note

As data center infrastructure becomes increasingly complex and interconnected, operational risks are diversifying and becoming more costly. Even infrastructure designed to be robust can be vulnerable to extreme conditions or configuration errors, underlining the importance of an integrated prevention strategy.

To reduce the risk of outages in data centers, several complementary measures are essential: redundant power systems (generators and UPSs) to ensure uninterrupted hardware operation; regular maintenance and testing, supported by monitoring and predictive analytics; failover to mirror sites for rapid traffic redirection; disaster recovery plans with checklists and regular drills; and staff training to minimize human error.

Is Romania joining the AI race? In June, the Romanian Authority for Digitalization announced the country’s bid to host one of the most ambitious European projects in the field of artificial intelligence: Black Sea AI Gigafactory. The project could attract an investment of approximately $5 billion and has the potential to transform Romania into a strategic hub for high-performance computing in Europe.

The Black Sea AI Gigafactory project involves the installation of over 100,000 AI accelerators across two locations: Cernavodă (Phase I) and Doicești (Phase II), which were mainly selected for their energy advantages. The infrastructure will be powered by a sustainable energy mix of up to 1,500 MW, based primarily on low-carbon nuclear energy.

However, this is just one of the opportunities generated by the EU’s AI Factory / AI Gigafactory initiative funded by the European Commission through the European High Performance Computing Joint Undertaking (EuroHPC JU) — the body responsible for developing and coordinating Europe’s high-performance computing infrastructure.

Next, we explore the other opportunities, components, and key elements included in the EU’s strategic approach to AI development.

A “CERN for AI”: What Is the AI Factory / AI Gigafactory Initiative?

AI is becoming a strategic priority for Europe, and through the AI Factory / AI Gigafactory initiative, the European Commission is taking decisive steps toward strengthening the EU’s position on the global tech map. This so-called initiative is, in fact, a broad set of measures with complex objectives: reducing dependence on American and Chinese infrastructures and ensuring free access to computing power for startups, SMEs, and researchers. Instead of a Europe that consumes technology, a new Europe is emerging—one that creates, controls, and democratizes access to high-performance computing (HPC) resources, while fostering a competitive AI ecosystem across the continent.

Through the AI Continent Action Plan , the European Commission is accelerating the development of a strong AI infrastructure in Europe, based on three main pillars: AI Factories, AI Gigafactories, and the Cloud and AI Development Act.

On one hand, AI Factories aim to train and optimize AI models, backed by a €10 billion budget for the 2021–2027 period. AI Gigafactories, four times more powerful than AI Factories, are designed for the development of complex AI models and benefit from €20 billion in funding through InvestAI. In parallel, the Cloud and AI Development Act seeks to boost research in sustainable infrastructure and attract investments, aiming to triple the EU’s data center capacity over the next 5–7 years.

Timeline and context:

January 2024 – AI Innovation Package: The EU adds AI Factories to its list of strategic priorities and launches investments via Horizon Europe and Digital Europe.

February 2025 – InvestAI, a €200 billion program for AI investments, is launched, with €20 billion allocated specifically for AI Gigafactories. Public-private partnerships are strongly encouraged.

April 2025 – AI Continent Action Plan: The EU sets out its roadmap for a network of AI Factories and energy-efficient AI Gigafactories, integrated into major data centers and inspired by the CERN model.

 

What Are the Short- and Medium-Term Objectives?

Between 2025 and 2026/2027, the European Union has set concrete steps to strengthen its AI infrastructure through the AI Factory / AI Gigafactory initiative:

• At least 13 AI Factories will become operational.
• Several AI Antennas—regional access points—will be launched to allow users to remotely connect to high-power AI resources.
• At least 9 next-generation AI supercomputers will be acquired and installed, distributed across various EU regions.
• Up to 5 AI Gigafactories will be created, each equipped with over 100,000 AI accelerators and designed for maximum performance: energy efficiency, high-speed networks, secure supply chains, and AI-driven automation.

The AI Factory Projects Have Been Selected. Which Countries Will Host Them?

So far, EuroHPC JU has selected 13 AI Factory projects in two phases, laying the foundation for the future of artificial intelligence in Europe.

In the first phase, in December 2024, the first seven consortia were designated, bringing together 15 EU member states (including Romania) and 2 participating countries. The AI Factories will be built in Finland, Germany, Greece, Italy, Luxembourg, Spain, and Sweden. The estimated investment is €1.5 billion (EU funding and national contributions).

Here are the selected projects:

1. BSC AI Factory (Spain, Barcelona): An initiative led by Spain, Portugal, Turkey, and Romania. It develops AI infrastructure for industry, government, SMEs, and startups, with a focus on health, energy, and agriculture. The project includes an upgrade to the MareNostrum 5 supercomputer and an experimental platform for new technologies.
2. IT4LIA (Italy, Bologna): AI infrastructure based on the LEONARDO supercomputer, supporting the agri-food, cybersecurity, and manufacturing sectors. Italy partners with Austria and Slovenia.
3. LUMI AI Factory (Finland, Kajaani): Coordinated with five other Nordic and Eastern European countries, this project enables rapid AI solution development.
4. L-AI Factory (Luxembourg, Bissen): Powered by the MeluXina-AI supercomputer, it supports sectors such as finance, space, and the green economy. It offers fast and customized support for companies, with a strong focus on startups and SMEs.
5. MIMER (Sweden, Linköping): A mid-range AI supercomputer with cloud access and scalable storage for sensitive data. It focuses on medicine, materials, autonomous systems, and gaming, and develops AI models for structural biology and personalized medicine.
6. HammerHAI (Germany, Stuttgart): Offers a scalable and secure AI platform for research and industry, with support for machine learning and hybrid HPC/AI. It helps companies access pre-trained AI models.
7. Pharos (Greece, Athens): Uses the DAEDALUS supercomputer to address needs in healthcare, culture, and sustainability, offering end-to-end support for users (from dataset provision to AI model training).

In March 2025, six additional AI Factory projects were selected to be developed in Austria, Bulgaria, France, Germany, Poland, and Slovenia, as follows:

1. AI:AT (Austria) – Hosted at TU Wien in Vienna, this AI Factory will provide companies with access to datasets, advanced AI models, and scalable computing infrastructure.
2. BRAIN++ (Bulgaria) – Located in Sofia Tech Park, it will include the Discoverer++ supercomputer and a dedicated AI hub. The project targets support for startups, the development of large language models (LLMs) for the Bulgarian language, robotics, and AI-based space observation.
3. AI2F (France) – Will leverage France’s existing supercomputing infrastructure, including Alice Recoque, an Exascale EuroHPC supercomputer set to go live in 2026. It aims to support the use of AI in healthcare, energy, agriculture, education, and more.
4. JAIF (Germany) – Built around JUPITER, Europe’s first exascale supercomputer, located at Forschungszentrum Jülich. It will provide integrated access to AI resources and host an experimental platform for developing and testing AI models. The project will support key sectors such as health, energy, education, and culture, and will collaborate closely with AI2F.
5. PIAST (Poland) – Backed by universities in Poznań, Toruń, and the Wielkopolska region, it will use the national supercomputer and the Piast quantum computer. It targets areas such as healthcare, cybersecurity, robotics, space, sustainability, and the public sector.
6. SLAIF (Slovenia) – To be installed in a new data center near the Mariborski otok hydropower plant. Its goal is to foster AI innovation in both business and the public sector, offering training, technical support, and knowledge transfer across the region.

Good to Know:

• May 2, 2025, was the deadline for submitting applications in the third round of AI Factory establishment.
• In April 2025, EuroHPC JU launched a call for proposals for AI Factory Antennas , enabling EU member states to deploy national AI Factory services without investing in their own supercomputing infrastructure.

AI Gigafactories: Next Steps

Another important date is June 20 — the European Commission closed the call for expressions of interest regarding the establishment of AI Gigafactories. A total of 76 proposals were received from 16 member states, covering 60 different locations.

The purpose of the call was to gather early insights from industry leaders, private and public investors, as well as member states interested in shaping the future AI infrastructure in Europe. According to a press release , although these proposals are not considered official applications, they will help the European Commission and member states create a shortlist of potential candidates for developing world-class AI Gigafactory facilities.

Thus, the ground is being prepared for the official project call, scheduled to launch by the end of 2025, with the actual implementation of the infrastructures expected to be completed most likely between 2026 and 2027.

Black Sea AI Gigafactory: What Makes Romania’s Proposal Unique?

Romania’s proposal, developed with the support of international experts from the World Bank, was submitted to the European Commission via EuroHPC JU in the form of a letter of intent to host the Black Sea AI Gigafactory.

The project is backed by a national consortium bringing together public, private, and academic sectors — including companies from the energy industry, consumer goods, advanced technologies, innovative startups, and research institutes. Authorities have announced plans to further expand and strengthen it.

Practically, Romania has expressed the desire to develop a “state-of-the-art AI infrastructure with a hybrid architecture, capable of serving both complex AI training and inference processes within a robust, secure, and sustainable operational framework.” As mentioned at the beginning of the article, this would involve installing over 100,000 AI accelerators in Cernavodă and Doicești, powered by 1,500 MW of nuclear energy.

• Unique competitive advantages of the Romanian project: direct power supply from nuclear sources (Cernavodă), digital infrastructure connected to major European nodes via fiber optics and submarine cables, an industrial site with SMR co-location potential (Doicești), hybrid cooling systems, and integration into the national high-speed communications network.
• Impact: strengthening Europe’s AI capacity, stimulating innovation in Central and Eastern Europe, supporting Ukraine’s digitalization, technologically integrating the Republic of Moldova, and expanding AI services to Serbia and Turkey.

The development of AI Factories and AI Gigafactories in the EU marks a crucial step towards consolidating European technological sovereignty, boosting long-term innovation and competitiveness in artificial intelligence. This evolution will also drive the data center sector, which is essential for supporting digital infrastructure. We hope Romania seizes this opportunity and plays its cards wisely through projects that highlight its strengths.

Now in its seventh edition, the DataCenter Forum brought together approximately 700 participants and over 20 Romanian and international speakers on May 7, 2025, in Bucharest. Organized by Tema Energy – the local market leader in data center design and construction – the event highlighted the challenges and opportunities arising from the Artificial Intelligence revolution. From the explosion in computing power demand and energy consumption to massive investments in green energy driving energy stability, and Europe’s increased reliance on sovereign AI and cloud, speakers emphasized that we are at the beginning of a profound transformation that will shape the digital economy for decades to come.

Opening Keynote: The AI Revolution & Europe 4.0. Mihai Manole, Tema Energy: We Are Rapidly Reaching Unprecedented Levels of Computing Power and Energy Due to AI

Mihai Manole, Managing Partner of Tema Energy, opened this year’s edition with an overview of the AI revolution, comparing the industry’s dynamics between the US, Europe, and Romania. According to the CEO, while record-breaking global investments in AI infrastructure are being announced – $500 billion in the US, over €200 billion in the EU, more than $100 billion in China, and $50 billion in the UK – Romania currently has 59 data centers and data rooms, most of them small to medium-sized, with a vacancy rate of around 54%, similar to major European markets (FLAP).

In terms of energy capacity, the US is building data centers totaling over 4,000 MW, China around 2,000 MW, and Europe surpasses 1,000 MW – compared to a global total of just 1,000 MW a few years ago. Romania, with 50% of its energy production from renewable sources and one of the most developed telecom networks in Southeastern Europe, has strong potential to attract significant international investments in this sector.

“Southeastern Europe has a relevant number of data centers, but installed power is low. On the other hand, we are at a very favorable moment for developing new data centers, and we are seeing very large green energy projects supported by the state or EU funds. Announced projects total 55 gigawatts from wind, solar, nuclear, and small modular reactors. These give Romania an advantage in energy stability and competitive pricing to attract international investor interest. What should Romania do to attract investments in this new data center and AI paradigm? First, authorities need to create a plan similar to what exists for attracting industrial and manufacturing companies. Because the new industry is IT and AI,” said Mihai Manole.

Keynote: Welcome to the AI Factory Era. Lessons Learned from Building the Largest AI Data Centers in the US – Wes Cummins, Applied Digital

The special guest of this edition was Wes Cummins – Founder and CEO of Applied Digital, one of the largest builders of AI data centers in the US, who successfully transitioned from crypto mining facilities to “AI factories.”

“To understand today’s level of tech adoption, consider this: ChatGPT, launched in November 2022, reached one million users in just five days. The fastest in any app’s history. Today, it has over 800 million users and around a billion queries per day. Google reached that daily query volume in 11 years. We’re talking two and a half years vs. 11. Also, if we look at the compute resources needed, Google uses 1,000 to 10,000 compute blocks per query, while ChatGPT uses between 300 billion and 1 trillion. These figures show the immense power required to run AI. This revolution will be built on data centers, much like the fiber-optic boom in the 1990s and early 2000s enabled the internet to become real,” said Wes Cummins.

According to him, the industry is facing unprecedented challenges in efficiency, capacity, and innovation not seen in the last 30 years.

“There will be many opportunities for innovative companies willing to take bold risks. During major industry shifts, as we are seeing now, is when new leaders emerge. We are at the start of a major transformation, perhaps one we may never witness again in our lifetimes,” he added.

Panel: Southeast Europe’s Data Center Market – Between Challenges and Opportunities

The event’s first panel featured Florin Popa (Orange Business Director, Orange Romania), Ion Paraschiva (Chief Commissioner, Head of IT Systems Management, Romanian Police), Alexandros Bechrakis (Digital Realty Hellas), and Radu Brașoveanu (PPC Romania).

Ion Paraschiva presented the Romanian Police’s perspective, mentioning the construction of a container-type data center (chosen for its relocatability), developed with Tema Energy. This helped bypass bureaucratic obstacles and accelerate operations for the more than 45,000 police officers currently active.

Florin Popa from Orange emphasized the rapid evolution of the local market in the past 12–18 months, marked by growing demand for colocation and infrastructure-as-a-service (IaaS, PaaS), along with increased interest in edge computing as companies seek proximity to customers. From Orange’s viewpoint, local challenges are not yet centered around AI, but around traditional use cases: B2B computing, back-up, and IT infrastructure. Data sovereignty compliance pressures are increasing, driving demand for local data centers.

“Energy consumption is rising, and the question is how fast it will rise and how we can support it – through transport and distribution networks and at the societal level. We’ll see how fast we can build these data centers and how we can support their massive compute needs. It’s critical to generate energy near data centers to avoid overloading the distribution grid. The key to all of this is digitalization,” added Radu Brașoveanu.

One of the panel’s conclusions, from Alexandros Bechrakis, was that regional markets are small and do not require massive investments, but rather well-directed ones.

“Romania, Greece, and other countries in our region are heading toward the third wave of development. In the next few years, we’ll see new centers built. Maybe not next year, but soon. At Digital Realty, we almost doubled our investment plan to nearly $8 billion, especially in US markets, but also in the FLAP region, as well as Greece, Romania, Spain, and Israel. We’re always seeking new markets, and all our European sites use 100% green energy,” he added.

Flash-chat: Trends Shaping the Data Centers of the Future – From Energy Efficiency to Edge Computing

The lineup of international speakers was rounded out by Mark Acton, one of the industry’s most prominent independent consultants. Acton has played a key role in shaping various industry standards and is a member of the European Commission committee responsible for the development of the EU Data Centre Code of Conduct – the main regulation for energy efficiency.

In the first Flash-chat of this year’s edition, Acton emphasized that data centers consume massive amounts of energy and that environmental responsibility is increasingly critical. According to him, Artificial Intelligence (AI) does not replace existing infrastructure—it augments it. As a result, the way we design data centers is changing.

“I wouldn’t call it a cold war, but it’s definitely an arms race,” said Acton. “Last week, Nvidia CEO Jensen Huang was asked whether China is lagging in AI, and he said no—in fact, they’re very close to the U.S. Clearly, we need to stay ahead and keep up with the pace of change. It’s a technological arms race, and I think the current geopolitical instability is prompting countries to focus more on their own regions. In Europe, I believe we’ll see more collaboration driven by these geopolitical shifts. Sovereign AI and sovereign cloud—our own technologies and data control—will become essential.”

Moreover, the focus is shifting from merely reducing the PUE (Power Usage Effectiveness) index to improving IT load efficiency—the real energy consumer in data centers. Acton also pointed out the need for greater public awareness. There’s a growing negative perception of data centers in the media, largely due to a lack of understanding of just how dependent society is on digital infrastructure. Users must become more aware of how their digital habits impact infrastructure and energy use.

Regarding regulation, Acton compared the data center industry to glassblowing—both require a lot of energy, and there’s often little clarity on how it’s used. Glassblowing took 15 years to be properly regulated; Europe is only just beginning the regulatory journey for data centers.

He also noted that established markets like FLAP-D (Frankfurt, London, Amsterdam, Paris, Dublin) are struggling to secure enough power, prompting a shift toward emerging markets. Romania has a real opportunity to join this map, with a favorable energy mix, high renewable potential, strong connectivity, and prospects for government support. Cities like Crete, Marseille, and Lisbon serve as inspirational examples.

Acton introduced the concept of “stranded energy”—excess energy generated by power plants that goes unused due to a lack of infrastructure for proper distribution. He warned that updating Europe’s energy grids could take up to 20 years. Meanwhile, SMR (Small Modular Reactors) technology could support future data center power needs, but public skepticism toward nuclear energy and a vague legal framework remain significant hurdles.

 

Panel – Ensuring Compliance in the Data Center Market: A Review of EU Regulations and Standards

Iolanda Saviuc (Scientific Officer at the Joint Research Centre, European Commission), Vanessa Moffat (representing the Data Centre Alliance), Nicola Hayes (CMO, Platform Markets Group), and Mark Acton discussed new EU regulations, including the EN50600 standard and Delegated Regulation (EU) 2024, which are still slow to adopt.

Panelists noted investors’ concerns over the complexity of new requirements but emphasized this as a moment of opportunity. By sharing data, engaging actively, and collaborating with European authorities, data center operators can shape future policies directly.

On the topic of incident reporting and the NIS 2 Directive, experts highlighted a major challenge: the data center industry has historically hidden security incidents. This lack of transparency undermines trust and the industry’s ability to learn and improve.

Saviuc and Moffat encouraged operators to get involved in EU stakeholder groups, challenge unrealistic proposals, and help ensure regulations reflect on-the-ground realities. Accurate data reporting is crucial to understanding the European data center landscape.

Acton stressed that the EU isn’t currently enforcing punitive measures—the goal is to introduce and promote best practices.

Flash-chat: Direct Liquid Cooling – The Future of Data Center Cooling

Philipp Guth, CTO of Rittal, spoke about how the German company is tackling the cooling challenges posed by AI. He highlighted two major trends transforming data center infrastructure: the explosion of large language models (LLMs) like ChatGPT and the rapid advances in chip manufacturing. New AI-optimized GPUs are incredibly powerful but also highly energy-intensive, with most of that energy converting directly into heat.

In this context, liquid cooling is no longer optional—it’s essential. Data centers need scalable, reliable cooling solutions capable of supporting AI workloads.

At the DataCenter Forum 2025 expo, Rittal showcased an innovative cooling system capable of delivering 1 MW of cooling capacity within the footprint of a standard rack. This solution is designed for both white and grey areas of data centers, with built-in scalability and redundancy—ideal for AI-ready infrastructures.

As demand for AI clusters grows, so does thermal density. Cooling systems must now offer both modularity and precision. Technologies like direct-to-chip cooling, which targets the heat source directly, provide superior thermal efficiency and reduce energy waste, Guth concluded.

 

Panel – The Tech Show Must Go On: Cutting-Edge Technologies Powering the Data Center Industry

This panel featured Flavia Chitanovici (Country Sales Manager, EnerSys Romania), Matteo Faccio (CTO, HiRef S.p.A.), George Dritsanos (Secure Power VP CEE, Schneider Electric), Igor Grdić (Regional Director Central Europe, Vertiv), Laurent Orvoën (Development and Innovation Sales Manager, Eneria), and Ramki Balasubramanian (International Sales – Technical, nVent).

Flavia Chitanovici outlined the main challenges facing critical infrastructure: pressure on power grids, the need for constant uptime, sustainability goals, and—above all—the skyrocketing energy demand driven by AI.

“Energy demand is growing so fast it’s outpacing infrastructure capacity. In 2024, data centers consumed around 415 TWh globally—1.5% of total global electricity use. And that number is growing up to 12% each year.”

This shift calls for a new paradigm: from simple back-up systems to intelligent energy management that supports long-term sustainability and resilience.

George Dritsanos discussed Schneider Electric’s commitment to sustainability, showcasing their microgrid-based approach and diverse portfolio of integrated solutions, including advanced software and solar energy storage. These solutions help data centers become more energy-efficient, sustainable, and future-ready.

Igor Grdić shared Vertiv’s perspective, highlighting how AI factories and GPU-driven centers, especially those with Blackwell series GPUs, present a unique challenge. Unlike the steady-state nature of traditional cloud workloads, AI servers generate sharp fluctuations in power usage—varying by up to 20 MW within milliseconds in a 100 MW site. Vertiv’s systems are built to handle such volatility.

 

Flash-chat: Vodafone Managed Services for Data Storage and Management

Dinu Dragomir, Director of Vodafone Business Romania, highlighted the company’s commitment to supporting businesses of all sizes and public institutions. Since 2024, Vodafone has offered its own public cloud (VPS) and private cloud (Virtual Data Center), hosted in Vodafone-operated data centers. He also noted the completion of Romania’s first government cloud and discussed the company’s internship program, which helps young people start and grow their careers at Vodafone.

 

Panel – The Role of AI in Technology: How Artificial Intelligence is Changing the Way We Work and Live

Speakers included Gabriel Pavel (Regional Director, Fsas Technologies), Mihai Logofătu (Co-founder & CEO, Bittnet Group), Tudor Cosăceanu (Regional VP, UiPath), and Bogdan Tudor (Founder, StarTech Team and CEO, Class IT Group).

Gabriel Pavel announced that Fsas Technologies will launch an energy-efficient AI processor in 2026 aimed at helping the entire industry.

Bogdan Tudor revealed that, for the past eight years, his organization has solved about 80% of user support requests and 90% of tech incidents using AI-powered software bots that diagnose and solve issues autonomously.

Mihai Logofătu explained how Bittnet integrates AI across internal processes, from employee relations to investor communications. “The impact is real. This is an irreversible transformation that must be viewed in its entirety,” he said.

Tudor Cosăceanu demonstrated UiPath solutions like “Document Understanding,” which uses AI to read and interpret documents, including doctors’ handwritten notes.

 

Inspiration Moment with Virgil Stănescu

Virgil Stănescu—former national basketball team captain and five-time MVP of Romania—shared insights on how we measure success and performance in both sports and technology. He recounted a moment from a podcast with chess legend Garry Kasparov, who said, “Work is talent.” According to Stănescu, we train and work 90% of the time to perform 10% of the time—and passion for that 10% is what makes the difference.

 

Awards Ceremony – DataCenter Forum 2025

The event closed with awards recognizing the most notable contributions in Romania’s data center industry:

• Cloud Services Provider of the Year: Vodafone Romania – accepted by Dinu Dragomir
• Hyperscale Regional Development of the Year: Digital Realty – accepted by Alexandros Bechrakis
• Digitalization of the Year – Public Institutions: General Directorate for Internal Protection, MAI – accepted by Florin Vizireanu
• AI Infrastructure Solutions for Data Centers: Rittal – accepted by Marius Totolici
• Press Contribution of the Year: Ziarul Financiar – accepted by Cristian Hostiuc

 

Conclusion

DataCenter Forum 2025 spotlighted the fast-paced transformation of the data center industry, driven by the AI revolution, rising power demands, and sustainability pressures. The surge in GPU clusters and the emergence of AI factories bring new challenges in cooling, energy consumption, and infrastructure stability. The industry is responding with tangible solutions: direct-to-chip liquid cooling, high-density modular systems, microgrids, and AI-powered operations. These technologies are reshaping data centers into smarter, more efficient, and more sustainable ecosystems—with a growing impact on both public and private digital transformation.

 

The IT&C sector is consuming more and more energy, and data centers are expected to account for 3.2% of the EU’s total electricity demand by 2030, a 28% increase compared to 2018, according to data cited by the European Commission. To adapt to this new reality, the Commission adopted in March 2024 the Delegated Regulation (EU) 2024/1364 on the first phase of the establishment of a common Union rating scheme for data centres. This regulation implements the Energy Efficiency Directive (EED) No. 2023/1791 and also lays the groundwork for benchmarking the sustainability of data centers in the European Union, based on a common measurement and calculation methodology.

The Delegated Regulation  details the key energy performance indicators (“KPIs”) that data center operators with an IT&C energy demand of at least 500 kW must report to the “European database on data centers.” It also outlines the calculation methods, reporting procedures, and the extent to which this information will be made public.

What does this mean for data center operators? In this article, we tried to provide some answers to their questions.

1. Who is required to report?

As previously mentioned, the Delegated Regulation applies to data center operators with an installed IT energy demand of at least 500 kW. These operators must report to the European database the information and key performance indicators (KPIs) specified in Annexes I and II of the Delegated Act for each data center they operate. The regulation also defines the types of data centers subject to these requirements:

• “Enterprise data center”: A data center operated by a company solely for the purpose of providing and managing its own IT needs.
• “Colocation data center”: A data center where one or more customers install and manage their own networks, servers, and storage equipment and services.
• “Multi-tenant hosting data center”: A data center where one or more customers have access to networks, servers, and storage equipment on which they operate their own services and applications. In this case, both the IT equipment and the building’s support infrastructure are provided as a service by the data center operator.

2. What do data center operators report?

The information and key performance indicators that must be reported to the European database are listed in the Annexes of the Delegated Act.

Annex I

On the one hand, there is the information about the reporting data center:

• Data center name: The name used to identify and describe the data center
• Owner and operator of the data center, including the name and contact details of both
• Location of the data center: The local administrative unit code (LAU code) of the data center’s location.
• Type of data center: Corresponds to the primary operation of the data center (see above).
• Year and month of commissioning: The calendar year and month when the reporting data center began providing IT services.

Secondly, there is information about the operation of the reporting data center:

• Redundancy level of the electrical infrastructure at high-voltage level/low-voltage (line) level/rack level.
• Redundancy level of the cooling infrastructure at room level/rack level.

Annex II

Annex II lists the key performance indicators that must be monitored, collected, and reported to the European database, as well as the measurement methodologies.

Energy and sustainability indicators:

• Installed IT power demand („PD_IT”, în kW)
• Data centre total floor area(‘S_DC’, in square metres).
• Data centre computer room floor area(‘S_CR’, in square metres).
• Total energy consumption(‘E_DC’, in kWh) of the reporting data center
• Total energy consumption of information technology equipment(‘E_IT’, in kWh)
• Electrical grid functions
• Average battery capacity (‘C_BtG’, in kW)
• Total water input(‘W_IN’, in cubic metres)
• Total potable water input(‘W_IN-POT’, in cubic metres)
• Waste heat reused(‘E_REUSE’, in kWh)
• Average waste heat temperature(‘T_WH’, in degree Celsius)
• Average setpoint information technology equipment intake air temperature(‘T_IN’, in degree Celsius)
• Types of refrigerants used in cooling and air-conditioning equipment within the computer room floor area of the data center
• Cooling degree days (“CDD”, in degree-days)
• Total renewable energy consumption(‘E_RES-TOT’, in kWh)
• Total renewable energy consumption from Guarantees of Origin(‘E_RES-GOO’, in kWh)
• Total renewable energy consumption from Power Purchasing Agreements(‘E_RES-PPA’, in kWh)
• Total renewable energy consumption from on-site renewables(‘E_RES-OS’, in kWh)

ICT Capacity Indicators:

• ICT capacity for servers(‘C_SERV’)
• ICT capacity for storage equipment(‘C_STOR’, in petabytes)

Data Traffic Indicators:

• Incoming traffic bandwidth(‘B_IN’, in gigabytes per second)
• Outgoing traffic bandwidth(‘B_OUT’, in gigabytes per second)
• Incoming data traffic(‘T_IN’, in exabytes)
• Outgoing data traffic(‘T_OUT’, in exabytes)

Annex III

Annex III lists the sustainability indicators that must be calculated for each data center based on the information and key performance indicators from Annexes I and II, along with the calculation methodologies.

• Power Usage Effectiveness (PUE)

E_DC and E_IT, as both defined in Annex II, shall be used to calculate the PUE of a data centre: PUE = E_DC/E_IT;

• Water Usage Effectiveness (WUE)

W_IN, as defined in Annex III and E_IT, as defined in Annex II but expressed in MWh, shall be used to calculate the WUE of a data centre: WUE = W_IN/E_IT;

• Energy Reuse Factor (ERF)

E_REUSE and E_DC, as both defined in Annex II, shall be used to calculate the ERF of a data centre: ERF = E_REUSE/E_DC;

• Renewable Energy Factor (REF)

E_RES-TOT and E_DC, as both defined in Annex II, shall be used to calculate the REF of a data centre: REF = E_RES-TOT/E_DC.

3. Annex IV. Who has access to information and what data will be publicly available?

Annex IV lists the information available to the public in the European database on data centers. At both the national (member state) level and the European Union level, the following data will be made available:

• Total number of reporting data centers
• Distribution of data centers by size categories
• Total installed power for information technology (PDIT)
• Total energy consumption (EDC)
• Total water consumption (WIN)
• Average PUE – total, by type, and by size category
• Average WUE – total, by type, and by size category
• Average ERF – total, by type, and by size category
• Average REF – total, by type, and by size category

Annex IV also lists the size categories for reporting data centers, based on the installed power for information technology of the data center:

• Very small data center: 100-500 kW
• Small data center: 500-1,000 kW
• Medium data center: 1-2 MW
• Large data center: 2-10 MW
• Very large data center: > 10 MW

The Delegated Regulation allows only the disclosure of data from Annex IV, aggregated at the member state and EU level. The Commission and member states will maintain the confidentiality of information from Annexes I and II. If information is transmitted through national reporting systems, member state authorities will ensure its confidentiality. Furthermore, colocation data center operators may collect KPIs from Annex II from their clients through an anonymous internal mechanism.

4. How to report. Deadlines

The Regulation requires the reporting of data from the Annexes by September 15, 2024, then by May 15, 2025, and subsequently on an annual basis. Therefore, less than two months remain until the next reporting deadline. The communication of information will be made to the European database using a national reporting system that each member state must implement. The information and key performance indicators to be reported must cover the calendar year preceding the reporting year. If a data center has been operational for less than a year, the operator will report only for the respective operational period. Unfortunately, only a few of the member states that have transposed the EED into national legislation have established a national reporting system – among these are Germany and Austria.

Visit this link to read the full text of Delegated Regulation (EU) 2024/1364.

The Delegated Regulation is not the only sustainability regulation targeting the data center industry. For example, the Corporate Sustainability Reporting Directive (CSRD)  requires organizations to report ESG (Environmental, Social, and Governance) initiatives, including third-party greenhouse gas emissions. This means that data centers may be required to report their own emissions and provide customers with details about their carbon footprint. The Taxonomy Climate Delegated Act  establishes criteria for evaluating economic activities that contribute to the European Union’s climate objectives.

The European Union is committed to achieving climate neutrality by 2050, and data centers are increasingly subject to sustainability regulations. We anticipate these regulations will allow the data center industry to leverage sustainability as a strategic advantage and a catalyst for innovation.

The whole world is buzzing with excitement over AI. While the U.S. and China are engaged in a veritable “chip war,” billion-dollar initiatives and investments are pouring in, with each country aiming for a share of the vast potential of Artificial Intelligence. Recently, Donald Trump announced the Stargate project, through which the U.S. will build AI infrastructure worth up to $500 billion. On the other hand, China announced an $8.2 billion investment fund, created through a public-private partnership, adding to the $13.8 billion fund launched last year.

In February 2025, Europe responded forcefully. During the “Artificial Intelligence Action Summit,” European Commission President Ursula von der Leyen launched InvestAI, an initiative through which the European Union will mobilize €200 billion for AI investments, including a €20 billion fund for the development of gigafactories, and the construction of 12 next-generation AI hubs.

Romania has entered this race timidly, launching its national AI strategy in 2024. Last year, the Technical University of Cluj-Napoca announced the construction of the first Artificial Intelligence research center in Romania, through an investment of over 105 million RON. Some countries, like the United Kingdom, recognize the profound implications of AI’s impact on humanity’s evolution and are mobilizing exemplarily. In January 2025, the UK took a decisive step in the global race for Artificial Intelligence by launching its national strategy, the “AI Opportunities Action Plan.” What lessons can Romania take from the United Kingdom’s example?

What is the “UK AI Opportunities Action Plan 2025”?

The strategy fully adopts the 50 recommendations made by Matt Clifford CBE (tech entrepreneur and chairman of the UK’s Advanced Research and Invention Agency – AIRR). It focuses on infrastructure development, flexible regulations, and accelerating economic growth. With a €16.6 billion commitment from the private sector and the prospect of over 13,000 new jobs, this plan not only drives innovation but also strengthens the UK’s position as a strategic hub for AI. This complements the €29.7 billion investment already announced in October 2024 at the International Investment Summit.

In the introductory section of the “Plan,” we learn that although the United Kingdom is the third-largest AI market globally and hosts an impressive number of talents and leading companies such as Google DeepMind, ARM, and Wayve, a new strategy is necessary. Why? The UK risks losing ground to the rapid AI advancements of the US and China. At the same time, “The risks from underinvesting [in AI] and underpreparing, though, seem much greater than the risks from the opposite”, the document states. The “AI Opportunities Action Plan” is divided into three sections, each corresponding to a government commitment. Below, we have summarized the concrete measures that the United Kingdom will take in the coming period.

1. Investments in the foundation of AI

The United Kingdom needs world-class computing and data infrastructure, access to talent, and regulation. As a result, the government aims to ensure access to a sufficient number of data centers and computing power to support innovation and drive the development of future industries. To achieve this goal, it will invest in Sovereign AI compute (owned by or allocated to the public sector) to respond quickly to national priorities such as AI research and the support of critical services. At the same time, it will promote domestic computing (capabilities owned and operated by private companies), which will generate AI-based jobs and businesses. Additionally, it will develop international partnerships to access complementary resources (“international compute”) and support joint AI research.

In practice, the United Kingdom will develop, within six months, a long-term plan for the country’s AI infrastructure needs, supported by a 10-year investment commitment. Other measures include the following:

• Starting in the next six months, AIRR’s capacity will be expanded by at least 20 times by 2030.
• Sovereign computing resources will be strategically allocated through the appointment of “AIRR Program Directors” with extended autonomy, who will focus on specific missions.
• “AI Growth Zones” (AIGZ) will be created to facilitate the rapid construction of AI data centers.
• International partnerships will be established to increase the types of computing capabilities available to researchers and to stimulate collaborations in AI research.
• As developers need access to quality data, the UK will unlock public and private datasets. In this regard, a National Data Library (NDL) will be created, which will identify datasets with the greatest economic and social potential. NDL will also create best practices for the secure publication of datasets that can be used to train AI.
• Inefficient regulation could hinder AI adoption in key sectors. Regulatory authorities will be required to publish annual reports on how they have supported innovation and AI-driven growth in their fields.

In addition, the United Kingdom aims to train, retain, and attract the next generation of AI scientists and entrepreneurs. In the short term, this means training “tens of thousands of AI professionals by 2030,” including through “alternative routes” such as internships and employer-led professional training programs. The UK also aims to take inspiration from Singapore, which created a national online platform for AI skills development, and South Korea, which integrated digital literacy and AI into its education system.

2. Accelerating AI adoption across the economy

The United Kingdom plans to make AI a central element of how services are delivered and productivity is achieved. At the same time, the government will focus on its role as a major user and client of AI services/products to support the adoption of new technologies in the private sector. To achieve these goals, the UK will adopt a flexible approach, “SCAN → PILOT → SCALE.”

• SCAN means the government will constantly monitor the evolution of AI technologies and learn about their new use cases to integrate them effectively into its projects. In practice, this means appointing an AI specialist for each mission, creating a government team that analyzes the market, and collaborating with AI providers to understand and influence the development of future technologies.
• PILOT refers to the rapid development of prototypes and the swift procurement of public services to launch pilot projects in high-impact areas. How? By creating a consistent framework of best practices that evolves over time for the development and procurement of AI technologies, rapid prototyping, and testing for key projects. Additionally, by providing an efficient experimentation environment with quick access to datasets, language models, and computing resources, and a fast, phased AI procurement process that facilitates the rapid funding of pilot projects and reduces bureaucracy as investments grow.
• SCALE focuses on expanding and applying successful AI solutions across various fields so that they can help citizens and improve productivity and efficiency. To achieve this, the government will support successful pilot projects, fund them, and expand them nationwide. This process also includes national AI tenders to enable rapid adoption across different sectors.

3. “Position the UK to be an AI maker, not an AI taker”

By 2029, the UK government estimates that AI will become a dominant factor in economic performance and national security, which is why it will support research and development of frontier AI capabilities, including in emerging fields such as AI for science, robotics, and Embodied AI. In this context, UK Sovereign AI will be created, a government-supported research lab that will collaborate with the private sector to maximize economic benefits. UK Sovereign AI will invest directly in companies, create AI Growth Zones, and form international partnerships. It will also ensure responsible access to the country’s most valuable datasets and research, support UK AI organizations in priority national projects, and attract external talent, including by recruiting promising founders or executive directors. Furthermore, it will facilitate deep collaboration with the national security community.

Take a look at the full text of the UK AI Opportunities Action Plan.

What can we learn from the UK?

The UK AI Opportunities Action Plan provides a remarkable example of an advanced AI strategy, similar to those in countries like Germany and France (). However, unlike these countries, the UK places a stronger emphasis on the practical details of implementing the national AI policy. Romania seems to have fallen into the same trap: starting in 2024, our country also has a national strategy in the AI field but still lacks a clear implementation plan.

In this context, we see several directions to learn from. Countries with advanced AI strategies invest heavily in research, development, and the implementation of Artificial Intelligence technologies, establishing clear policies for their integration into essential areas such as education, healthcare, industry, and national security. These strategies promote strong partnerships between the public and private sectors (including internationally), attract talent and resources, and create a legal framework that supports innovation. Additionally, such an approach involves consistent investments in digital infrastructure and data management, facilitating access to cutting-edge technologies and maximizing the economic and social impact of AI.

Although we cannot match the UK in terms of AI investments, as we rely heavily on European funds (through programs such as the PNRR, Digital Europe, and Horizon Europe), Romania can leverage its strengths. These include a tradition of mathematics and computer science education, which has trained hundreds of thousands of experts working at the largest international tech companies, as well as high-speed internet infrastructure, essential for the development of the IT industry. Additionally, Romania benefits from lower labor and energy costs compared to other European countries, a stable energy network, and great potential in the green energy industry.

The FLAP-D region (Frankfurt, London, Amsterdam, Paris, and Dublin) remains a leader in the European data center market, attracting the industry’s largest investments. However, major changes in recent years have accelerated development in countries like Spain, Greece, Italy, and Sweden, driven by growing concerns about energy consumption

For example, in the Netherlands, the government imposed a 9-month moratorium on permits for data centers larger than 10 hectares. Similarly, this summer, the South Dublin County Council rejected Google’s application  to build a new data center, citing concerns about the energy demand on the Irish grid and the lack of on-site renewable energy sources. Changes have also emerged in Germany, the first country to adopt dedicated data center legislation. Starting January 1, 2024, all data center operators in Germany must cover 50% of their energy consumption with unsubsidized electricity from renewable sources. Additionally, Germany mandates a PUE of 1.5 or lower starting July 1, 2027 (and a PUE of 1.3 starting July 2030).

 

In this context, we have analyzed the main programs, strategies, partnerships, and projects at the European level to understand better how countries outside the FLAP-D region are adapting to this new reality.

 

Greece, balancing red tape and digital transformation

 

Greece benefits from investments by Amazon, Google, Digital Realty, and Microsoft, which promise to create thousands of jobs and transform the country into a major data center hub in Europe. In 2023, Microsoft announced a $1 billion investment plan to build a campus of three data centers, located 1.5 kilometers north of Sparta. Similarly, Google plans to build its data centers in Athens by 2030. Unfortunately, many investors face challenges with Greek bureaucracy: Microsoft reportedly needed four years to obtain construction permits for its first data center in Greece (Spata), according to the online publication ekathimerini.com.

How did Greece achieve these milestones? Key factors include its strategic geographic location (connecting Europe to Africa, the Middle East, and Asia, by extension), economic and political stability following a decade-long economic crisis, improved infrastructure, and a highly skilled workforce.

In addition, Greece’s Digital Transformation Strategy for 2020-2025, also referred to as the ‘Digital Bible’, prioritizes digitalization, including the development of digital skills in Greek society at all levels and age groups. The strategy is complemented by projects aimed at mainstreaming the integration of digital technologies in various sectors of the economy and transforming companies into digital enterprises.

Moreover, at the beginning of 2024, the UAE Ministry of Investment and the Hellenic Ministry of Digital Governance signed a Memorandum of Understanding (MoU) to develop data centers with a total capacity of 500 megawatts. () Additionally, in 2021, Greece received €4 billion in pre-financing from the EU, part of which is allocated to help SMEs adopt digital technologies. Complementing these efforts are Greece’s initiatives to establish Free Trade Zones and Special Economic Zones, creating an attractive environment for investors.

 

Italy is betting on small modular reactors (SMRs)

In October 2024, Italy’s Minister of Enterprises, Adolfo Urso, announced that the country had been chosen as the location for a €30 billion investment in data centers by a foreign corporation, though no further details were provided. Just a month before this announcement, Italian Prime Minister Giorgia Meloni met with Larry Fink, CEO of the American multinational investment company BlackRock, to discuss potential investments in data centers and supporting energy infrastructure. The two agreed to set up a panel to explore possible future infrastructure projects.

American hyperscalers Microsoft, Google, Amazon, and Oracle already have data centers in Italy – Microsoft plans to invest an additional €4.3 billion to expand its cloud and AI infrastructure in the country. Meanwhile, Amazon will invest €1.2 billion over the next five years to expand its data center business in Italy.

However, the higher electricity prices in Italy compared to competing European countries remain a challenge. To address this, the Italian government plans to introduce a new legislative framework by the end of 2024, which will support the construction of small modular reactors (SMRs). The long-term goal is to turn nuclear energy into a cornerstone of the “Made in Italy” brand.

Another problem Urso acknowledges is Italy’s IT skills shortage. Microsoft is contributing to addressing this by aiming to train over a million Italians by 2025, with a focus on AI fluency and business transformation through AI. Microsoft plans to achieve this goal through collaboration with industry partners, universities, nonprofit organizations, government institutions, and others.

It is also important to remember that Italy has been a pioneer in European sovereign cloud initiatives. For example, the Cloud Italia strategy includes guidelines for the migration of public administration to the cloud. These initiatives are driving the evolution of the cloud industry in the country.

 

Norway: a model of collaboration with local data center operators

 

The development of the data center industry in Norway is based on competitive advantages such as the cold climate year-round, political stability, and the availability of renewable energy. Earlier this year, Google announced plans to build a €600 million data center (240 MW) in Skien, Norway, by 2026. This is a sign that the Norwegian government’s efforts to position Norway as an attractive country for data center operators have paid off.

In 2018, Norway launched its own data center industry strategy (updated in 2021), which was the first of its kind globally. In January 2024, the Ministry of Digitalization and Public Governance was created, responsible for digitalization and the data center industry. Additionally, Norwegian authorities are working on updating laws and regulations to address the rapid digitalization of society, a process actively supported by the Norwegian data center industry. For example, the Electronic Communications Act (Ekomloven) is being updated to regulate the data center industry as a facility related to electronic communications networks and services.

In December 2023, the Norwegian government rejected the recommendation of the country’s National Security Authority to develop a state cloud, opting instead for a national cloud solution operated in collaboration with commercial players. This decision highlighted the authorities’ trust in the Norwegian data center industry.

 

Sweden and Finland: champions of low-cost electricity

 

In June 2024, Microsoft announced that it would allocate $3.2 billion to expand its data center capacity in Sweden. This announcement comes three years after the launch of the first Azure region and the first data center cluster in the country. As part of the project, similar to Italy, Microsoft will prioritize training 250,000 people in AI by 2027.

At a press conference held alongside Swedish Prime Minister Ulf Kristersson, Microsoft President Brad Smith stated that the main reason for the company’s investment was Sweden’s “forward-looking energy policy, the plentiful access to green energy, whether it’s carbon-free energy or renewable energy”.

Finland is not falling behind: in November 2024, Google purchased 1,400 hectares worth €27 million in Kajaani, a town that hosts Europe’s most powerful supercomputer, LUMI. Finland and Sweden stand out for having the cheapest electricity in Europe, according to Finnish Energy statistics. In 2023, the average electricity price was €56.47/MWh in Finland and €51.70/MWh in the Stockholm area. In comparison with Central Europe, the difference is significant: in Germany, the price was €95.18/MWh, and in Ireland, it reached €131.62/MWh.

But Finland has gone even further – two years ago, it reduced the electricity tax for small data centers to the minimum level allowed by the EU. To benefit from this reduction, one of the requirements is the efficient use of residual heat. As a result, the residual heat from the LUMI supercomputer meets 20% of the annual heating needs of the city of Kajaani in Finland. Similarly, Microsoft uses the residual heat from its data centers in Helsinki to supply approximately 40% of the centralized heating needs of the Espoo area. It is also worth mentioning that Finland has the most advanced district heating network in the world, which enables the efficient transfer of residual heat generated by data centers.

Sweden and Finland stand out for their access to renewable energy (hydropower, wind, solar, and nuclear), the reliability of electricity supply, the fast approval of projects compared to other countries, extremely low seismic risk, and the high availability of IT specialists.

 

Denmark, a leader in renewable energy

In October 2024, NVIDIA CEO Jensen Huang and King Frederik X of Denmark inaugurated the country’s first AI supercomputer, Gefion. It includes over 1500 NVIDIA H100 Tensor Core GPUs, operated by the Danish Center for AI Innovation (DCAI) and funded by the Novo Nordisk Foundation, one of the richest charitable foundations in the world, alongside the Export and Investment Fund of Denmark, the national bank of Denmark. In its initial phase, Gefion will serve public and private organizations looking to use AI for advancements in quantum computing, energy efficiency, weather forecasting, and the medical field.

Another major project was announced in September by atNorth, which plans to build its largest data center in Ølgod, Varde, Denmark. It will cover 174 hectares, with an initial capacity of 250 MW, and will be equipped with advanced technology allowing the reuse of residual heat in homes and industrial greenhouses. atNorth operates 7 other data centers across the Nordic countries. Also in September, Penta Infra announced plans to build a data center spanning over 20,000 sqm with an IT capacity of 20 MW in Copenhagen.

Denmark’s strategy for the data center industry, which has established Copenhagen as a leading European hub, is based on its position as a global leader in renewable energy and energy security.

 

Accelerated growth of Spain’s data center industry

 

As Manuel Giménez, the executive director of Spain DC, the Spanish data center industry association, said, the Spanish sector is experiencing the fastest growth in Europe. In 2023, Madrid accounted for 61% of the industry (147 MW IT), followed by Barcelona with 14.4% (34.9 MW IT), and Aragón with 37.2 MW IT. According to the same Spain DC, by 2026, Spain could increase its installed capacity by up to six times, surpassing 600 MW. This growth will bring it closer to the major European markets in FLAP-D.

Spain stands out for its strategic position as a connection point for submarine cables linking Europe to Latin America, the United States, Africa, and the Middle East, which stimulates the growth of connectivity providers. Additionally, its location offers a high level of solar radiation, ideal for generating renewable energy. With access to green energy, developed telecommunications networks, a strong technology industry, digital talent, and innovation capacity, Spain has established itself as a top European technology hub and an ideal destination for data center investments.

Hyperscalers soon followed: two years ago, Google decided to open a cloud region in Madrid, which came with a five-year investment plan (€650 million) and includes critical infrastructure projects like the Grace Hopper submarine cable, which connects Spain to the USA and UK. In 2022, Amazon launched a cloud region in Aragon, and in 2024, it announced new investments of €15.7 billion. The plans include the construction of four wind farms and eight solar power plants. In turn, Microsoft announced it would quadruple its investments in AI and cloud infrastructure in Spain between 2024 and 2025, reaching $2.1 billion. Read more, here. To support this growth, the Spanish government plans to increase investments in the development of energy transport network infrastructures.

 

How is the situation evolving in Romania?

 

In Romania, there are approximately 130 data centers, most of them concentrated in Bucharest, Cluj-Napoca, Timișoara, and Craiova. Their capacity covers only 3.2 W per capita, far below the average of Nordic countries, which reach 22.6 W, and below the average of Central and Eastern Europe (4.5 W). However, Romania is approaching the performance of Nordic countries in terms of the PUE (Power Usage Effectiveness) index, with an estimated average of 1.37, according to a Crosspoint Real Estate study. The Romanian data center industry benefits from advantages such as access to well-trained IT specialists and abundant renewable energy sources, including wind, hydro, and solar power. Data centers in Romania are small compared to the global market. However, there are a few that stand out due to their integrated technologies and specialization (ClusterPower, Orange Business Solutions, NXDATA, M247, StarStorage, GTS, etc.). Additionally, new projects have been announced by companies such as Portland Trust and Infinity Cloud Technologies.

In recent years, there have been negotiations with representatives of Google, Microsoft, and Amazon to build large-scale data centers in Romania, so far it seems that they have not advanced beyond the stage of discussions.

For the public sector, in April 2024, the Romanian state signed a contract with Vodafone worth 418.7 million lei for the development of the governmental private cloud infrastructure. The project is funded through the National Recovery and Resilience Plan (PNRR) – Component 7 Digital Transformation and includes multiple data center facilities, which will complement those already existing at ICI, ONRC, MAI, and other institutions.

Conclusion

Although Romania has national strategies in multiple areas (Digitalization, AI, Quantum Computing) there is no coherent approach to the data center sector and no concrete measures to catalyze the field. We see that countries that are accelerating their development in the data center industry are focusing on key components such as: developing the digital skills of the society, improving infrastructure (including energy transport networks), eliminating bureaucracy, investing in alternative/renewable energy sources, working with local data center operators to adapt legislation, reducing electricity taxes for the data center industry and efficient use of waste heat. All these are often integrated into coherent, long-term national digital transformation strategies.

We hope that the authorities in Romania will take inspiration from the example of these countries and learn how to better capitalize on the opportunities in the data center sector, a global industry currently valued at around $324 billion, but expected to surpass $436 billion by 2028.

Cloud, IoT, BigData, Artificial Intelligence, digitalisation, robotization are a few key concepts that define The fourth industrial revolution also known as Industry 4.0. The Industry 4.0. became a buzzword in the Germany’s economic strategy landscape and was defined by Angela Merkel as  “…the fusion of the online world and the world of industrial production”, Industry 4.0. will yeld a return of over 4tn dollars by 2020 according to KPMG. Under the pressure of the release of this new technologies, Data Centers are in a continuous transformation to meet the demands and the best price-performance ratio. Even though the Romania’s Economy is far left behind in this industrial revolution, the general trends in the Data Center industry are reflected in various forms on the local market as well.

Here are the main directions:

Ongoing refinement of Gen 4 Data Centers. Known as “EdgeCore”, Gen 4 Data centers have a smaller footprint, nevertheless much more user friendly and are forming networks.

The development of architectural innovations will provide real-time scalability and increased efficiency as well as optimized operational costs due to the modular structure. They will also integrate optimized cooling solutions, high-density, Lithium-Ion batteries, etc.

Colocation services are becoming more appealing to cloud providers. As market demand increases rapidly, cloud providers  don’t have enough time to build new facilities. Moreover, some of the cloud providers are not considering Data Center Operations amongst their core competencies, thus colocation in modern and performing Data Centers enables them to focus on developing new services and increasing market share, especially that cloud sales will exceed 33 bn USD.

High-density it’s here. The Data Center Community raves about this subject for some years now, but as the volume of data in geometric progression increases, the IT resources currently available will become insufficient. The industry will increasingly focus on increasing density rather than expanding the surface of server rooms.

Operators will give up on low-power racks as they embrace maximum power and cooling technologies. Although the 10 KW / rack density remains the standard, the 15KW / rack becomes more and more widespread, and the more powerful operators turn to 25KW / rack, motivated by the introduction of hyperconvergent IT systems and software solutions.

Fast response to business requirements. The ability to quickly launch a product or service becomes a real competitive advantage for many companies, and the IT infrastructure must support this. Mobile Data Centers represent, for many organizations, the fastest solution for expanding processing power. Implementation time can reach 1-2 months, and PUE – at values ​​of 1.25-1.07. Applicability is widespread, not only in the private sector, but also in public administration, including amongst organizations from the defense and security sector.

All four of these trends are also found on the local market. From smart phones to stand-alone vehicles, the new digital economy is based on data and information that needs to be stored, processed, secured with a 24/7 availability. Can you imagine these processes without a state-of-the-art Data Center? Participate in the DataCenter Forum 2018 edition to stay abreast of trends in industry and to get in touch with the most renowned specialists.

Although power cuts are a common phenomenon in Romania, the affected organizations have vague estimates of losses. A simple calculation of the cost of missed business opportunities and the number of unsatisfiedcustomers, would fully justify investing in a powerful Power Backup solution.

1 November 2017, 16.40 – Fundeni electrical station is experiencing a breakdown. –As a result, many business and industrial areas in Bucharest are affected for more than seven hours.

Beyond the technical explanations provided by suppliers and authorities, the situation is and remains critical. Because such incidents have a high repetition rate in Romania December 2017, February 2018 … and the list will most likely expand. Because such events happen not only in the winter, but in all seasons. And not only in Bucharest, but also in Cluj, Timisoara, Brasov, Craiova, Iasi …

Data Centers can suffer heart attacks too

For a DataCenter, every blackout equals with a hearth attack, even if it takes only a few seconds. According to the Electric Power Research Institute, 98% of the power cuts last less than 10 seconds. But it is enough to cause malfunctions in a data center. This malfunctions occur because once the current has passed, switching to the secondary power source has to take place in the order of milliseconds. Charging is initially taken over by an Uninterruptible Power Supply (UPS) system, and then, if the power supply is not resumed, or the Data Center does not have a redundant connection, the generators go into operation. Theoretically it sounds good, but according to the Uptime Institute, UPSs batteries account for 29% of the unplanned downtime that a Data Center faces, and the generators account for 10%.

So what is it to be done?

This is a legitimate question, given that almost 40% of downtime is generated precisely by the elements that should protect data centers in the event of a power failure.

The answer – especially for companies that do not have technical skills in the field of power solutions – is asking for specialised assistance

And that’s because not every organization using a Data Room or a small data center knows how to:

• many UPSs are needed,
• Choose the level of redundancy and the proper configuration that is needed
• Ensure optimal operating conditions
• Monitor and diagnose battery performance
• Establish and execute a maintenance and testing program and so on.

The situation is becoming/is gettingmore complicated by introducing other “unknowns” such as ATCs, PDUs, the maintenance and testing of the generators, etc.

Therefore, for many organizations, resorting to the services of an power solutions consultant it’s inevitable

When it comes to providing power solutions services, the local market recommends Tema Energy as a top company for solid and easy to prove reasons:

• Nearly 16 years experience in the field of electro-energy solutions, the company being a successful leader in this niche market.;
• A large variety of projects implemented – the company client base varies from hospitals and data centers to financial-banking institutions and factories;
• the “vendor agnostic” status based on an expanded product portfolio, which guarantees that organizations can choose the solution wich best meets their requirements;
• An extensive portfolio of solutions from the most important market vendors, accessible to medium and small organizations and certified in accordance with international standards. For example, the Data Center Continuous (DCC) accreditation of diesel generators from Cummins Power Generation, one of Tema Energy’s partners on Power Backup solutions. DCC accreditation certifies the continuous operation of the generator without any restrictions on the variable load factor. (Such certifications simplify the process of designing power systems and simplify the auditing process.)

And yet another important “differentiator”, which few Datacenter integrators could provide: Tema Energy is constantly investing in expanding the support network that already has national coverage, being able to provide fast and professional services allover the country.

We expect you to attend the DataCenter Forum, on May 11^th, at Crowne  Plaza Bucharest, an event full of unique information opportunities, documentation and networking. The event combines the exposition area with technical presentations and workshops which are premiered nationally. Which are the main reasons for which attending  DataCenter 2017 is necessary for any professional in this field?

• Top technologies presented by 14 local and international providers, products presented for the first time and which can be hard to evaluate under any other conditions. Through exhibitors: Vertiv,  Riello,  APC by Schneider, Nexans, Caterpillar, Rittal, Uptime Institute USA, Hoppecke, Leoch, Pyralis, Toshiba, Carrier and Uniline.
• The unique occasion to visit a Mobile Data Center, with containers, built based on a unique Tema Energy concept. Mobile data centers represent one of the main tendencies on the global market.
• Attending an Uptime Institute workshop about „Best practices in DataCenter Management and Operations”, held by Scott Roots. A premiere in Romania.
• Top speakers, local and international, available for advisory services and networking. Shall attend:  Marcis Randa (APC), Thomas Selzer (HOPPECKE), Nicola Caglia (Riello), Liviu Ploesteanu (Vertiv), Silviu Ardeleanu (Nexans), Marius Totolici (RITTAL), Adrian Ciuceanu (Toshiba) and Stathis Babalis (LEOCH) are among the speakers.
• Opportunity of information on a wide range of products, solutions and services which otherwise might need extended documentation time, covering all operational areas of a Data Center: climate, electrical-supply (UPSs, batteries, generators), fire detection and extinguishing, security, communication and networking, IT equipment, monitoring and maintenance etc.

DataCenter Forum 2017 is an event organized by the Tema Energy integrator and shall take place on May 11^th, at Crowne Plaza Bucharest. Free entrance, based on invitation or registration on the website  www.datacenter-forum.ro

The debated topics in Ziarul Financiar Live interview were the need for power back-up, professional cooling solutions, the specificity of local Data Centers and DataCenter Forum event.

We look forward to discussing these topics together and at the DataCenter Forum on Thrusday, May 11!

Register free at www.datacenter-forum.ro