A Goldman Sachs report released on October 8th estimated that to meet the construction demand of approximately 60-80 GW of data center capacity in Europe by 2035, European utilities would need to invest an additional €100-150 billion in dedicated renewable energy capacity. Finland and Spain have recently introduced policies requiring new power generation to support new data center demand, and Goldman Sachs believes that if the EU follows suit, the direction will be consistent. If connectivity and power generation resources become hard constraints for data centers, the valuation logic for European utilities will shift from "regulated returns" to "scarcity resource pricing," and the option value of existing connectivity assets will be reassessed.
