BRUSSELS, Feb 3 (Reuters) - Long delays to get power
grid connections are challenging Amazon's ( AMZN ) plans to
expand data centers in Europe, the company told Reuters, as
industries ramp up pressure on policymakers to upgrade ageing
energy grids.
Energy-intensive industries have urged the European Union to
invest more in grids, warning that a fast connection to stable,
reliable power networks is a key criteria for investments in new
industrial sites in Europe.
Pamela MacDougall, Amazon Web Services' (AWS) head of energy
markets and regulation in EMEA, said the timeline for getting a
grid connection had become one of the biggest deciding factors
in the company's data center investments.
Connecting to the transmission network in Europe can take up
to seven years - versus the roughly two years it can take to
develop a data center, she said.
In the United States, connection queues average one to three
years, according to the International Energy Agency, although
they can sometimes also stretch to seven years.
"And we're finding more and more across Europe that certainty of
the delivery date has continued to be delayed," she said in an
interview.
The European Commission proposed legal changes last year to
cap deadlines for authorities to approve grid permits at a
maximum of two years, and exempt grids projects from
environmental assessments, to speed up the modernisation of
Europe's power networks. EU countries and lawmakers are
negotiating the proposals.
NETWORK CONGESTION
MacDougall said "in many countries" in Europe, Amazon ( AMZN )
had wanted to build infrastructure but missing grid connections
or power network congestion had made the project unfeasible.
"There's a misalignment. We want to expand and grow within
two years," MacDougall said, adding that the delays were
"challenging our growth aspirations".
Italy and Spain are among the countries where grid
connections are slowed down by a backlog of so-called
"speculative" projects which applied for connections as a
precaution but will likely not go ahead, electricity industry
association Eurelectric has said.
First-come, first-served rules mean other projects cannot
overtake them in the queue.
Another factor is long wait times for permits to upgrade
European power grids. Slashing these deadlines are among the
legal changes proposed by the European Commission.
MacDougall is vice-chair of GIGA, an industry association
launched last month to push policymakers to modernise Europe's
power grids. Other members include energy-hungry tech companies
Meta and Google, and electric vehicle
charging infrastructure firm Fastned.
Amazon ( AMZN ) is building data centers across Europe as it expands
its AWS - the world's largest cloud provider, which provides
computing power, data storage and other digital services.
The company does not disclose exactly how many data centers
it has in Europe, but it has existing infrastructure in more
than 20 European countries and is expanding investments in
countries including France, Germany and Spain.