Booming Datacenter pipeline and AI spending boom - the pivotal role of energy: POWERING UP EUROPE
Report Coverage
- Broker
- Goldman Sachs
- Region
- Europe
- Sector
- AI Infrastructure, Software & IT Services, Utilities
- Report Type
- Industry Report
- Primary Focus
- European datacenter build-out and electrification super-cycle for utilities
Full Report Document Access
This page is a research report summary and access guidance page. If you are searching for Goldman Sachs Booming Datacenter pipeline and AI spending boom - the pivotal role of energy research report PDF or the full report document, use the summary, coverage fields and related links to confirm relevance before requesting VIP access. Full PDF report access is available to VIP members after request confirmation; the PDF is not publicly displayed on this page.
Report Summary
Goldman Sachs updates its European datacenter pipeline estimate to approximately 480 GW, equivalent to 1.5x current European power demand, up from 170 GW in January 2025 and 290 GW six months ago. The EU Datacenter Association expects +20 GW of capacity additions by 2031, nearly tripling existing capacity to 35 GW, with 60% already under construction or at FID. Big Tech AI capex from the five main hyperscalers is projected to reach nearly $1 trillion in 2027, a tenfold increase versus 2023, with cumulative 2023-27 investments of $2.4 trillion. Goldman Sachs favors three company clusters: transformative electrification stories (Naturgy, Enel, Engie), renewables developers and manufacturers (RWE, EDPR, Solaria, Orsted, Vestas, Nordex), and energy security providers (Siemens Energy, EON, Snam), trading at an average 12x P/E and 7.5x EV/EBITDA by 2030E.
Key Takeaways
- European DC pipeline surged to ~480 GW (1.5x EU power demand), nearly tripling from 170 GW in Jan 2025, signaling a major datacenter construction phase spread fairly evenly across the continent.
- EUDCA forecasts +20 GW DC additions by 2031 (to ~35 GW total), with 60% already under construction or FID, driving +1.5% annual power consumption growth by 2028-29 and DCs reaching ~10% of EU power demand.
- Big Tech AI capex from five main hyperscalers (Amazon, Microsoft, Alphabet, Meta, Oracle) projected to reach ~$960 bn in 2027, a near tenfold increase vs 2023, with cumulative 2023-27 spending of $2.4 trillion.
- Agentic AI queries consume up to 50x more energy than typical AI chatbots; a 10pp uptick in Agentic AI adoption could boost European DC needs by 25-30%, pushing installed capacity to ~80 GW by 2035.
- Goldman Sachs' hyper-electrification scenario projects +5% annual power demand growth by 2030, supporting EUR 3.5 trillion in power generation and grid investment needs and a generational earnings super-cycle for utilities.
- The three favored company clusters trade at ~12x P/E and ~7.5x EV/EBITDA by 2030E, a discount to the sector average despite higher growth prospects, with base case EPS CAGR of ~9% to end of decade.
Why This Report Matters
This report provides a comprehensive framework for investors to capitalize on the generational electrification and AI-driven datacenter build-out in Europe, identifying specific beneficiary companies across utilities, renewables, and energy security that trade at attractive valuations despite structurally higher growth prospects.
Topics Covered
Companies Mentioned
Who this summary is for
This summary is for users researching the Goldman Sachs Booming Datacenter pipeline and AI spending boom - the pivotal role of energy report. It helps users review Booming Datacenter pipeline and AI spending boom - the pivotal role of energy: POWERING UP EUROPE coverage, key takeaways, and related broker or sector research paths across European datacenter pipeline and construction boom, AI infrastructure capex and hyperscaler spending, power demand growth from electrification and datacenters; Naturgy, Enel.
Related Search Paths
Use these links to continue through broker, sector and report-type research summaries.