Amazon has reportedly put brakes on its data center expansion in Europe. According to a report by Reuters, quoting top exec of Amazon Web Services (AWS), the long timeline for getting a grid is behind the decision. “Long delays to get power grid connections are challenging Amazon’s plans to expand data centers in Europe, the company told the news agency. Energy-intensive industries have reportedly urged the European Union (EU) to invest more in grids, warning that a fast connection to stable, reliable power networks is a key criteria for investments in new industrial sites in the continent. Amazon Web Service is the world’s largest cloud provider.Pamela MacDougall, Amazon Web Services’ (AWS) head of energy markets and regulation in EMEA, told Reuters that the timeline for getting a grid connection had become one of the biggest deciding factors in the company’s data center investments. Connecting to the transmission network in Europe can take up to seven years – versus the roughly two years it can take to develop a data center, she said. “And we’re finding more and more across Europe that certainty of the delivery date has continued to be delayed,” she added in an interview. MacDougall is vice-chair of GIGA, an industry association launched recently to push policymakers to modernise Europe’s power grids. Other members include American tech companies Meta and Google, and electric vehicle charging infrastructure firm Fastned.MacDougall said “in many countries” in Europe, Amazon had wanted to build infrastructure but missing grid connections or power network congestion had made the project unfeasible. “There’s a misalignment. We want to expand and grow within two years,” MacDougall said, adding that the delays were “challenging our growth aspirations”.Amazon does not disclose exactly how many data centers it has in Europe, but it reportedly has existing infrastructure in more than 20 European countries and is expanding investments in countries including France Germany and Spain.Italy and Spain are among the countries where grid connections are slowed down by a backlog of so-called “speculative” projects. These projects are unlikely to go ahead. Also, first-come, first-served rules in these countries mean that other projects cannot overtake them in the queue. Another factor is said to be the long wait times for permits to upgrade European power grids. Slashing these deadlines are among the legal changes proposed by the European Commission (EC).
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