Helping a global tech investor plan for growth in Europe’s AI data centre market

To future-proof its digital infrastructure strategy, a global technology investor needed to pinpoint the best markets in Europe to develop sustainable, AI-optimised data centres.

Background

They wanted to understand which countries offer the strongest policy, power, and flexibility conditions and what lessons could be transferred back to their operations in Japan. This meant unpacking complex energy regulations, emerging best practices, and how leading data centre operators are responding to rising power demand.

Client needs and key question(s)

The technology investor sought to identify where and how to scale AI-optimised, sustainable data centres in Europe, and what lessons could inform future developments in Japan. Their key priorities were understanding energy policies, infrastructure constraints, and best emerging practices in power procurement and flexibility.

They wanted to know:

• Which European markets offer the most favourable conditions for large-scale, AI-ready data centres?
• How are operators overcoming grid constraints and securing reliable, low-carbon power?
• What innovative practices such as renewable integration, demand-side response, and smart workload shifting are being adopted?
• What insights from the European context could help shape national planning, regulation, and investment strategy in Japan?

What we did

LCP Delta delivered a focused six-week study across five key European markets to assess the policy, power, and sustainability landscape for AI-optimised data centres.

Our methodology combined:

• Policy and market research: Reviewed national and EU energy, climate, and data centre regulations to map strategic implications.
• Case study benchmarking: Analysed best-in-class operators innovating in sustainable power procurement and grid flexibility.
• Targeted interviews: Conducted primary research with data centre operators, policymakers, and energy providers to validate key trends.

The core areas of focus for our analysis included:

• The impact of recent geopolitical shifts (eg. Ukraine conflict, EU-China supply chain tensions) on energy and infrastructure policy.
• How major cloud providers are securing large-scale, low-carbon power in the face of rising grid constraints.
• Real-world adoption of demand response, onsite generation, and AI-based workload shifting to improve operational flexibility and resilience.
• Transferable insights from Europe to inform Japan’s evolving strategy for high-performance, sustainable data centre growth.

The results

The project delivered a rigorous evidence base to guide the client’s data centre strategy in Europe and draw insights relevant to Japan. Key outcomes:

• Market clarity across FLAP-D and beyond: (FLAP-D - Frankfurt, London, Amsterdam, Paris, and Dublin have traditionally been at the centre of the EMEA data centre market). A structured comparative analysis of the UK, Ireland, Germany, France and the Netherlands, covering permitting, policy alignment, power procurement barriers and investment signals.
• Policy insight: Mapped over 30 relevant national and EU-level regulations, highlighting policy gaps and support mechanisms for AI-optimised data centres (eg. land access, grid access, and sustainability mandates).
• Best practice case studies: Detailed examination of six leading data centre and flexibility innovators (eg. Google, Microsoft, VIOTAS, Equinix), showcasing how AI workload shifting, renewables integration and demand response schemes are being deployed in practice.
• Actionable relevance to Japan: Identified four transferable strategies and five priority policy design features that could inform Japanese AI data centre planning and decarbonisation efforts.
• Board-ready outputs: Delivered a comprehensive slide deck tailored for C-suite audiences, with scenario insights, visualised trends, and short-form strategic recommendations.

This research gave the client clear direction on location targeting, energy procurement options, policy risk management, and international benchmarking; ensuring confidence in cross-border AI infrastructure decisions.