Frankfurt is considered an important center for the digital economy. However, the planned expansion of AI data centers is stalling. It is not stricter environmental regulations, but a lack of power supply that is preventing progress. Industry circles report a lack of grid capacity. The Association of the Internet Industry Eco therefore demanded that “access to power grid connection capacity” must be ensured. At the same time, the association criticized the federal government. In its 100-day review, it stated: “A national strategy for data centers has been announced, but when it will be released and what concrete relief it will provide for the industry remains unclear.”
Power shortages affect AI data centers worldwide
The energy problem does not only affect Germany. In the US, too, there is growing concern that the rising demand for AI data centers will strain weak networks. According to Fortune, Goldman Sachs warned that “AI’s insatiable appetite for power is outpacing the network’s decades-long development cycles, creating a critical bottleneck.” This scenario could massively slow down growth.
A survey by Deloitte confirms the risks. For US data centers, grid congestion remains the key bottleneck. Since many cities have limited reserves, companies are now investing in their own power plants. Added to this is growing dissatisfaction among the population. In Ohio, the monthly electricity bill for an average household rose by at least $15 in the summer, with data centers cited as the main reason.
China builds on stable energy policy
In comparison, China appears more robust. Rui Ma, founder of Tech Buzz China, emphasized to Fortune: “This stands in stark contrast to the US, where AI growth is increasingly linked to discussions about data center power consumption and grid constraints.” Decades of overbuilding and targeted investments in all areas of energy supply have given the country a clear advantage.
This model differs significantly from that of the West. While the US and Europe focus on short-term returns, Beijing pursues strategic planning. Centralized control allows for the accumulation of massive reserves, which are now visible as a locational advantage.
Limits of the Chinese energy model
However, China’s energy policy also has its downsides. Official figures from 2024 show that coal continues to play a dominant role, accounting for around 57.77 percent of the energy mix. Renewable energies only account for around 20.27 percent, with hydropower making up the largest share. Nuclear energy remains a minor factor, accounting for 4.47 percent.
This shows that China’s lead is based not on sustainable energy policy, but on sheer capacity. The government’s portrayal of a renewable energy paradise thus loses credibility. There is a significant gap between ambitious rhetoric and reality, which also affects AI data centers.