Funding data centers is drying up, electricity demand skyrockets
Capital markets are closing out AI data centers while 15 GW of power is on the waiting list. What is realistic?
Published on October 26, 2026
Team IO+ selects and features the most important news stories on innovation and technology, carefully curated by our editors.
The Dutch data center sector is facing a double crisis: funding is drying up, while the waiting list for power connections is skyrocketing to 15 GW—enough to supply power to every household in the Netherlands. Grid operators warn that a third of these requests come from data centers, but in most cases these are not concrete plans, but rather reservations made to keep options open. The combination of closed capital markets, uncertain demand, and an overloaded power grid threatens to turn the AI boom into a bust.
AI-driven growth hits a wall
In recent years, demand for data centers has skyrocketed: neoclouds, which specialize in AI computing power, had already contracted 420 MW of colocation capacity in Europe in the first half of 2026—nearly five times as much as in the same period of 2025. Two-thirds of this growth is taking place in the Scandinavian region, where cheap, renewable energy is available and average temperatures are low. Yet this expansion is not without risks. Real estate advisor CBRE warns that the rapid growth is putting pressure on power grids and the availability of green energy. Despite strong demand for AI computing power, the market remains skeptical about the financial viability of these projects. Elon Musk recently emphasized that most of the more than 200 neo-cloud providers will not survive on their own.
Capital markets are closing the door on high-risk projects
By 2026, the financing market for data centers will be virtually closed to companies without solid, independent revenue streams outside of AI infrastructure. Musk and venture capitalist Chamath Palihapitiya point out the risks of debt financing and the need for better capital structures. Jensen Huang of Nvidia confirms this: the lack of working capital is the biggest bottleneck for neoclouds, while the scale of capital required exceeds current financing options. The AI infrastructure market is facing delays in project pipelines, which could lead to underutilization of expensive hardware by 2027. Analysts such as Dauvin Peterson of 22V Research do see momentum in demand for AI infrastructure through 2027, but emphasize the risks of insufficient capital.
15 GW on the waiting list: how realistic are these plans?
In the Netherlands, 15 GW of power requests are on the waiting list, a third of which come from data centers. This capacity is enough to supply power to nearly all 8.5 million Dutch households. However, most of the demand is not for concrete plans but rather a strategic reservation. Stijn Grove of the Dutch Data Center Association explained to the NOS that companies are applying early and in large numbers to secure a spot in line, with wait times of about ten years. Grid operators such as Alliander emphasize that the waiting list of 15,500 applicants in 2026 says little about actual implementation. The government is being called upon to make tough decisions about where and how many data centers will be allowed to be built, with clear conditions regarding energy, the environment, and water usage.
Financial risks and unclear demand forecasts
The financing crisis in the data center sector threatens to lead to a harsh restructuring. Musk warns that of the more than 200 neo-clouds, only a few will survive. CoreWeave has approximately $50 billion in debt, Nscale has $24 billion in committed purchases, and Amsterdam-based Nebius has $10 billion in convertible debt. Gartner expects that more than 80% of neo-clouds will no longer operate independently by 2030. The market for used GPUs could come under pressure if financially weak neoclouds are forced to sell assets, which could trigger a negative chain reaction. In 2027, the sector faces a crucial test: project delays and insufficient revenue could lead to “stranded compute,” where expensive hardware fails to deliver a sufficient return on investment.
Grid operators must anticipate uncertainty
Grid operators in the Netherlands, such as Alliander and TenneT, face an impossible task: investing in grid expansion while actual demand remains unclear. The costs of grid expansion are estimated at over €200 billion through 2040, which will significantly increase household energy bills in the coming years. The government is being called upon to establish clear and uniform conditions for data centers, but ultimate control must remain at the regional level. State Secretaries Willemijn Aerdts and Jo-Annes de Bat acknowledge the need for better management of the scarcity of space and electricity, but no concrete policy has been established yet. Alliander advocates for more efficient electricity consumption by data centers, for example through the use of batteries or by supplying residual heat to homes.