High energy and water consumption of data centers causes backlash in Europe Every time a user interacts with artificial intelligence, they are rarely aware of the enormous energy and water resources required to process their query. Behind each AI-generated response lies a complex infrastructure that demands millions in investments and significant electricity and water consumption. Artificial intelligence is poised to be the key driver of productivity growth in the coming years. Its adoption is rapidly expanding across all business sectors, to the point that it will soon be as essential as the internet is today for any company. However, the development and implementation of AI depend on massive investments in semiconductors, the construction of costly data centers, access to abundant and affordable energy, and a robust electrical grid capable of supporting the high demand of these centers. Despite optimistic rhetoric, Europe lacks a concrete strategy to achieve autonomy in artificial intelligence. More than 80% of global AI funding goes to U.S. companies, which lead the sector, while European firms capture only about 10%. This dependence on U.S. giants persists, despite initiatives like the French Mistral AI. Europe also faces additional challenges: high energy costs, dependence on China for renewables, and saturation of its electrical grids. The continent imports a large part of its energy, making electricity more expensive for industry. In 2023, German companies paid more than three times what their U.S. counterparts did for electricity, and Spanish companies paid more than double. Europe's commitment to renewable energy increases dependence on China, which dominates 80% of solar panel production and 75% of lithium batteries. Additionally, grid saturation limits economic growth. In Spain, 88% of distribution nodes are saturated, preventing new connections and hindering industrial, real estate, and clean energy projects. The lack of investment in the electrical grid acts as a bottleneck for new initiatives and economic development. A recent example is the rejection of a €2.5 billion data center in Hesse, Germany, following opposition from the city council and local protests over the impact on electricity prices, water consumption, and limited direct job creation. This resistance is repeated in other projects in Germany, such as in Brandenburg, Wustermark, and Hanau, despite these centers being crucial for the country's digital advancement. Europe aspires to benefit from AI and its impact on productivity but avoids taking on the investments and inconveniences associated with establishing data centers on its territory. The next technological leap, quantum computing, will also require large amounts of energy for cooling. Once again, Europe lags behind: the top ten companies in the sector are headquartered outside the European Union. Source: eleconomista.es