European Commission to propose law accelerating AI-powered smart meters to shift household electricity use away from peak hours as data center demand threatens grid capacity.

The European Commission will propose new legislation later this year to roll out AI-powered smart meters that enable households to shift electricity consumption to cheaper hours, reducing bills and easing grid pressure during peak demand.

Smart meters give consumers greater control over when they use electricity and can help reduce curtailment of renewable energy by improving utilization of existing network infrastructure.

Data centers currently account for 2.5 percent of EU energy use, with demand expected to more than double over the next four years, pressuring grids already strained by the clean energy transition and electrification of transport and heating.

Horizon Europe will provide €75 million to develop energy-efficient AI strategies as part of the Strategic Roadmap for Digitalisation and AI in the Energy Sector.