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Denmark says: not so fast
Data centers are having a moment, but Denmark’s grid operator Energinet just threw a little cold water on the party. After an explosive jump in demand, it halted new connection agreements, basically saying the local power system can’t keep taking every new server farm that shows up with a business plan and a dream.
Why this matters beyond Copenhagen
This isn’t just a Denmark problem. It’s the latest sign that the AI-and-cloud buildout is running into a very unsexy constraint: power. You can order more GPUs, pour more concrete, and sign more leases, but if the grid is tapped out, the whole plan gets stuck in traffic.
For companies with big data-center ambitions, that means:
- longer timelines to bring capacity online
- higher costs for power and infrastructure
- more scrutiny from local communities annoyed by the footprint
The investor takeaway
If you own the picks-and-shovels side of the data-center boom, this is a mixed bag. Grid bottlenecks can slow deployment, but they also crank up demand for energy infrastructure, efficiency tech, and alternative power solutions. Big picture: the AI race is increasingly being won — or delayed — by whoever can secure the juice.