Hamburg – September 07, 2026 -- Artificial intelligence infrastructure is poised to become the most significant growth driver for Europe's energy sector, according to a new industry report from credit insurer Allianz Trade titled "Energie & Solar."
Renewables covered 58% of German electricity consumption in first-half 2026
Germany's net electricity imports fell more than 85% year-on-year to just over 1 terawatt-hour (TWh), driven by strong domestic renewable generation. Allianz Trade CEO for Germany, Austria and Switzerland, Milo Bogaerts, said the limited impact of recent Middle East tensions on European gas prices compared to the 2022 energy crisis demonstrates that each additional kilowatt-hour of wind and solar power increases Europe's resilience to price shocks.
Seven planned AI gigafactories set construction start for first-half 2027
AI data centers rank among the most energy-intensive applications, requiring continuous, large-scale power availability. Allianz Trade industry expert Guillaume Dejean said the buildout creates new industrial baseloads, long-term power purchase agreements, and additional revenue potential in grid and storage segments for utilities. The planned European AI gigafactory infrastructure could strengthen Germany's position as both an energy and digital hub.
Grid bottlenecks and storage gaps are pressuring utility revenues
Despite the AI-driven demand outlook, the impact has yet to materialize in most energy companies' financial results. Massive investment in grids, storage and digital infrastructure is required before utilities can capture the additional demand, while higher financing costs complicate capacity expansion. Rapid solar rollout combined with a lack of harmonized European electricity pricing has increased the frequency of low or negative price periods, squeezing the very revenues needed to fund the energy transition, Dejean said.
China supplies the majority of Europe's solar modules and battery storage
Fossil fuels, particularly natural gas, continue to influence European power pricing, leaving markets exposed to geopolitical shocks such as the current Middle East conflict. At the same time, Europe's energy transition remains heavily dependent on China for solar modules, batteries, storage systems and critical intermediate products. Recent setbacks in domestic manufacturing efforts by European players have deepened this dependency, Allianz Trade noted.
Solar's share of global energy consumption is projected to nearly quadruple by 2050
Allianz Trade forecasts solar power's share of global energy consumption will rise to roughly 30% by 2050, driven by electrification, AI-related demand growth, and rising temperatures linked to climate change. Bogaerts said securing supply chains for key technologies is becoming as strategically important as expanding renewable generation capacity itself, with Europe's competitive position hinging on how quickly it can build domestic capacity for critical raw materials and technologies.