Denmark’s government is moving to prioritise access to the electricity grid, as capacity constraints threaten to delay new connections. Under its emergency plan, large electricity consumers, including data centers, are generally placed in the lowest-priority category, raising concerns about the country’s ability to expand its digital infrastructure while pursuing its green transition.
The framework divides grid connection applications into four categories. It introduces criteria including a project’s contribution to society and its “grid friendliness” – factors such as location, flexibility and the ability to reduce or shift electricity consumption during periods of high demand. Data centers are generally assigned to category four, although individual projects’ characteristics and societal functions may influence prioritisation.
Denmark’s transmission grid faces capacity constraints, with some large projects potentially waiting five to ten years for full grid access. Meanwhile, demand for electricity is growing as industry electrifies and investment in artificial intelligence and digital services accelerates.
Industry calls for balanced approach
The Danish Data Center Industry (DDI) acknowledges the need to manage scarce grid capacity but warns that the new framework risks undermining Denmark’s digital competitiveness. The association argues that the country needs both the green transition and the digital infrastructure underpinning AI, cloud computing, cybersecurity, businesses and public services.
DDI opposes automatically assigning data centers the lowest priority simply because of their sector. Instead, it advocates transparent, objective and technology-neutral criteria that assess projects according to their maturity, grid impact, flexibility and wider societal value. It also wants existing investments to receive predictable treatment and contributions such as battery storage, waste-heat recovery and renewable energy agreements to be recognised.
Clearing the queue
In a statement published on 9 October, DDI outlined a proposed national action plan for data centers, welcoming the government’s shift towards action plans while arguing that grid access must be addressed urgently.
According to the association, 16–18 GW of data center projects are currently in Denmark’s grid connection queue, but its market analysis estimates that only around 1.2 GW of capacity will actually be built by 2030. DDI argues that speculative or immature projects distort planning and tie up capacity that could be used by viable developments.
Its proposals include stricter maturity requirements for reserving grid capacity, evidence of project progress, temporary release of unused capacity and greater transparency about the queue. The association also calls for better use of existing grid infrastructure, including reforms to enable direct electricity lines, co-location and microgrids.
DDI’s position is that Denmark should expand data center capacity in a controlled and responsible way, rather than sacrificing digital development to short-term grid constraints. The challenge for policymakers is to allocate scarce electricity fairly while ensuring that viable digital infrastructure projects can proceed.
