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Powering the digital economy: the global expansion of data centres and its energy implications

2026

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This paper analyzes the rapid global expansion of data centers and its significant energy implications, highlighting the growing strain on electricity grids and the need for proactive policy responses.

* Examines the market dynamics, scale, and geographic concentration of data centers.
* Assesses the energy footprint of data centers, focusing on the United States and Europe.
* Discusses key policy challenges including distributional impacts, the interaction between digital and energy transitions, and energy security.

Data centers, energy consumption, digital infrastructure, electricity prices, grid congestion

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