What is changing in storage, power conversion and data centres
A short, sourced selection of the technology and policy news that matters to manufacturers, investors and operators working with Europe. Updated regularly.
Last updated: 30 October 2026
Policy
EU-funded projects: high-risk inverter and PCS suppliers excluded from 1 November 2026
The European Commission has confirmed it will not delay its 1 November 2026 deadline. Projects that receive EU funding, including EIB and EIF financing, must exclude inverters from suppliers in high-risk countries (China, Russia, Iran and North Korea) or switch progressively to other suppliers. Battery storage power conversion systems (PCS) are explicitly included, as are factories in Europe controlled by companies from those countries. Projects mature enough for approval by 1 November can be assessed under the previous framework; outside the EU grid the phase-out runs to 15 April 2027. The measure is interim guidance based on cybersecurity, not a new regulation, and it does not apply to fully private, merchant projects.
What it means
For any project that expects EU, EIB or EIF money, the origin of the PCS and its control software becomes a bankability item. It has to be settled when the technology is chosen, not at financial close. Projects financed privately are not affected by this rule.
Spain: data-centre decree reaches the Council of State
Spain's draft royal decree on energy, environmental, resilience and digital-sovereignty requirements for data centres entered the Council of State on 26 October under the urgent procedure. Its opinion is expected around 18 November, and the Government aims to approve the decree before the 29 November general election. The draft requires data centres to cover at least 80% of their consumption with renewable generation under certain conditions, with hourly matching targets. The industry has asked for changes.
What it means
Hourly renewable matching makes on-site or nearby generation, storage and an EMS part of the design of a data centre in Spain, not an option added later.
AI racks head towards 600 kW and 1 MW, with 800 V DC power
Nvidia has shown 600 kW "Kyber" racks for its Rubin Ultra platform, planned for 2027, and is working with partners on 800 V DC power distribution for megawatt-class racks. Today's 54 V rack power starts to hit physical limits above about 200 kW. Nvidia says 800 V DC can improve end-to-end efficiency by up to 5% and cut maintenance costs by up to 70%. Partners include Infineon, STMicroelectronics, Texas Instruments, Delta, Flex, Eaton, Schneider Electric and Vertiv.
What it means
Rack power is moving from tens of kilowatts to hundreds. Grid connection, on-site storage and power electronics have to be sized for that density, and DC architectures open new roles for batteries and converters inside the data hall.
Chinese manufacturers are moving from 314 Ah to 500 Ah-plus LFP cells. CATL began mass production of its 587 Ah cell in 2025, and EVE has moved towards 628 Ah. A 587 Ah cell is only about 20% denser than a 314 Ah cell, but with the same cell count per rack it raises module and rack energy by 60–80%, which lowers balance-of-system cost per kWh. 20-foot containers of 6.25 MWh are now common, and several makers showed 6.9 MWh units at SNEC 2026. Intertek CEA expects container costs to keep falling through 2027, although lithium carbonate prices have roughly tripled.
What it means
Fewer containers for the same energy means less land, cabling and installation work. But new cell formats need checks on PCS matching, fire-safety certification and warranty terms before they are specified for a European project.
GPU racks now routinely exceed 100 kW, while air cooling reaches about 15–20 kW per rack. Direct liquid cooling handles about 80–150+ kW per rack with a PUE of about 1.1–1.3; immersion handles about 100–250+ kW with a PUE of about 1.02–1.10, at a higher capital cost. Operators with liquid-cooling capacity are charging premiums of 20–40% over air-cooled space in the same market.
What it means
Cooling choice sets the power a site needs from the grid and its water use. It has to be decided together with the energy supply, not after it.
At SNEC 2026, CATL presented a sodium-ion storage container: 316 Ah cells, 3.07 MWh in 20 feet, rated for 15,000 cycles at 25 °C and 9,000 at 45 °C, with first mass deliveries planned for the third quarter of 2026. The cell is designed to fit existing 587 Ah LFP architectures, including PCS matching. REPT Battero showed a 320 Ah sodium-ion cell rated for 20,000 cycles.
What it means
Sodium-ion trades energy density for cycle life, performance in heat and independence from lithium prices. It is worth watching for hot sites and for applications with many daily cycles.
Industrial Accelerator Act: Commission proposes "Made in EU" requirements for inverters, cells and batteries
The draft regulation would require EU-made inverters and solar cells in public procurement, auctions and public support schemes, with phased EU-origin requirements for battery storage. Which storage components count, including PCS, would be defined later by implementing acts. It also proposes conditions for large foreign investments in batteries and solar, such as joint ventures with European partners. It is still a proposal: the Parliament and the Council have to agree on it, so it is not yet in force.
What it means
Origin rules could move from EU funding to public tenders and support schemes in general. Manufacturers planning for Europe should follow the definitions of "EU origin" and the list of components closely while the text is negotiated.
Net-Zero Industry Act: resilience criteria now apply in renewable auctions
Since 30 December 2025, EU member states must apply non-price criteria, including resilience, to at least 30% of the renewable capacity they auction each year, or to at least 6 GW a year. Resilience looks at dependence on a single non-EU supplier country for a net-zero technology. Batteries are listed as a strategic net-zero technology.
What it means
In auctions, price is no longer the only factor. Supply-chain diversity, cybersecurity and sustainability can score points, so they should be documented from the first offer.
Summaries prepared by STEG Group from public sources. They are general information, not legal advice. Check the original texts before taking decisions.
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