Denmark gives new data centres lowest priority for grid connections

Denmark has adopted a law that gives new data centres the lowest priority when it comes to connecting to the electricity grid. The measure responds to growing capacity shortages. It took effect in October 2026.

The law replaces a first-come, first-served system. Under the new order, households, healthcare, industry, transport and renewable energy projects are prioritised ahead of new data centres. Denmark's power grid has come under strain from a surge in electricity demand and connection requests, including those from large data centres.

The piece also covers Portugal, which is taking a different approach: tightening environmental requirements rather than limiting grid access. Environment Minister Maria da Graca Carvalho said the government is preparing new rules that would require data centres to run on renewable energy and to use cooling systems that do not compete with household and business water supplies.

Portugal is doing this while still trying to attract data centre and AI infrastructure investment. It is promoting projects such as the 1.2-gigawatt Start Campus facility in Sines, one of Europe's largest planned data centre campuses.

Taken together, the two countries show governments starting to set conditions on data centre growth as energy and water limits come into view. Denmark does so by ranking data centres behind other users of the grid, and Portugal by attaching energy and water requirements to projects it still wants to attract.

The text also includes a brief line noting that Australia has no specific AI laws and relies on privacy and consumer protection laws plus a voluntary AI ethics framework.