AWS warns European data centre expansion at risk from seven-year grid delays

AWS executives have told regulators and industry partners that connecting new sites to the high-voltage transmission network can take far longer than the roughly two years typically needed to build a data centre. The delays are forcing the cloud giant to reconsider where and how it invests in its European infrastructure.

Pamela MacDougall, AWS’s head of energy markets and regulation for Europe, the Middle East and Africa, told Reuters: “There’s a misalignment. We want to expand and grow within two years. These delays are challenging our growth aspirations.”

The issue stems from multiple factors as many European countries are dealing with aging grid infrastructure that cannot support new, power-intensive data centres.

High demand has created queues of connection requests, with some projects waiting years for approvals while holding capacity for feasible developments. Regulatory and permitting processes further compound the problem, leaving AWS and other operators navigating complex, slow-moving approval pipelines.

Cloud providers including Google and Meta are also affected, prompting industry calls for investment in grid modernisation. The European Commission has proposed reforms aimed at reducing connection timelines and streamlining permitting for grid projects, including a suggested two-year cap for grid approvals. Negotiations with member states and EU lawmakers are ongoing.

The delays are more than an operational headache. They have financial implications, with investors watching closely as infrastructure constraints could limit the rollout of cloud and AI capacity. Market reaction has been cautious; Amazon’s shares dipped in early trading after the warning, highlighting investor concern over how grid bottlenecks could affect future growth.

Outage, outrage and no plan B, AWS failure shows Europe is flying without a safety net