Amazon's European Data Center Expansion Stalled by Grid Connection Delays of Up to Seven Years

Amazon Web Services is facing unprecedented grid connection delays that threaten to stall its European data center expansion plans for years, with some projects now facing wait times of up to seven years—far exceeding the typical two-year construction timeline.

Grid queues stretching into the 2030s The scale of the problem became clear through comments from Pamela McDougall, AWS's head of energy markets and regulation for EMEA, who told Reuters that grid connection certainty has become "one of the biggest deciding factors" in where the company invests. While AWS typically completes data center construction in about two years, with U.S. grid connections averaging one to three years according to the International Energy Agency, European markets present a starkly different picture.

In countries like Italy and Spain, even projects with land secured and permits approved cannot obtain firm delivery dates for grid connections. This creates a bottleneck where physical readiness means little without power infrastructure to support it.

AI-driven power demand reshaping the landscape The timing couldn't be worse. Data center power demand has surged dramatically over the past three years, primarily driven by AI infrastructure requirements. Traditional facilities designed around 6 to 12 kilowatts per rack are being reimagined to handle loads several times higher. AI clusters create concentrated demand blocks that must be provisioned upfront—a challenge for grids originally designed for predictable industrial and commercial loads.

This transformation has exposed fundamental weaknesses in grid planning. The International Energy Agency has warned that procurement timelines for core grid components now routinely extend beyond two years for cables and up to four years for large power transformers. Even with expedited regulatory approval, physical delivery of essential equipment can lag by years.

The capacity squatting problem Perhaps most troubling is the phenomenon of "capacity squatting" in markets like Italy, where grid operators have received connection requests totaling tens of gigawatts tied to speculative or early-stage projects. Similar patterns plague Spain and parts of Northern Europe, where capacity gets reserved years in advance without mechanisms to ensure projects actually proceed.

This creates a perverse situation where grid capacity exists on paper but remains effectively unavailable. Ready-to-build projects wait behind speculative ones that may never materialize, turning grid access into a race of who arrives first rather than who's actually prepared to build.

Reform efforts underway but slow The United Kingdom offers a potential model for addressing these challenges. Energy regulator Ofgem is moving away from strict first-come-first-served allocation toward a "first-ready" model that prioritizes projects with land, financing, and permits secured. Similar reforms are being discussed in Italy and Spain, but bureaucratic processes move slowly, and existing queues will take years to unwind.

Geographic shifts and alternative strategies These delays are already influencing investment patterns across Europe. Analysis from energy think tank Ember suggests poor grid planning could push data centers away from established hubs like Frankfurt, London, Amsterdam, and Paris—markets with the longest wait times.

Meanwhile, secondary markets are seeing increased interest. Microsoft has explored opportunities in Greece, while Google has looked at Poland as alternatives to congested traditional hubs. The pattern suggests a geographic redistribution of European data center infrastructure as companies seek more accessible power connections.

Industry response and long-term implications Amazon isn't passively accepting these constraints. Alongside Google and Meta, the company is a founding member of the Green Industrial Grids Association (GIGA), which lobbies for faster permitting and coordinated transmission planning. Cloud providers are also exploring ways to reduce grid dependence through on-site generation and investments in alternative capacity sources, including nuclear power.

The fundamental challenge remains: grid access now dictates where and when new capacity gets built in Europe. Projects securing firm connection dates move forward, while others stall regardless of demand. In markets with long and poorly enforced queues, grid capacity has become a scarce, front-loaded resource.

Efforts to reform the system and accelerate grid investment are underway, but they compete with years of accumulated backlog and extended equipment lead times. Until these frictions ease, European data center expansions will continue to be throttled by power delivery constraints—a bottleneck that threatens to slow the continent's AI and cloud computing ambitions at a critical juncture.

Luke James is a freelance writer and journalist with a background in legal affairs and a personal interest in technology, particularly hardware, microelectronics, and regulatory frameworks shaping the industry.