Goldman Sachs has drawn attention to the potential for a large expansion in Europe’s datacenter footprint as AI workloads increase electricity requirements across the continent.
In its assessment, the bank noted that the UK’s National Grid is preparing for a scenario in which up to 10 GW of datacenter demand is connected to the power system by 2031. Goldman Sachs flagged that such a level of new load could translate into an increase in UK electricity consumption of as much as 25%.
The report extended that view to the rest of Europe, estimating a range of 60-75 GW of datacenter capacity by 2035. Goldman Sachs tied the width of that range directly to differing rates of AI adoption, underscoring that the technology’s uptake will shape future power needs.
Against that backdrop, the bank listed specific companies it sees as most exposed to this demand theme. SSE plc was singled out as one of the UK-listed names with the greatest exposure as the country prepares for materially higher electricity consumption linked to datacenter rollouts across the coming decade.
Goldman Sachs gave its strongest endorsement to RWE among the European names it reviewed, writing that "RWE is by far the most positively exposed" to the datacenter and electrification trend. The firm connected that opportunity to broader moves across the region, including AI adoption, rising power demand and additional investment in electricity generation and grids.
Ørsted was also identified by Goldman Sachs as one of the UK market stocks most exposed to datacenter-driven growth in electricity demand. The bank pointed to an evolving European energy policy environment - increasingly focused on electrification and energy security after repeated energy crises - which it believes will support higher long-term power consumption across the region.
The bank's analysis places utilities and power-grid investments at the center of the market response to growing datacenter electricity needs, while emphasizing that the magnitude of demand will depend on how quickly AI workloads scale across Europe.
Sectors affected - The developments described by Goldman Sachs directly touch the utilities sector, grid infrastructure and datacenter operators. Higher electricity consumption tied to datacenter rollouts may influence investment and capital allocation decisions across these areas.