The city of Amsterdam, worldwide known for its capabilities as an Internet hub, has adopted a daring strategy for sustainable urban development. The city has now declared that it will no longer allow the construction of new data centers within its boundaries. With this decision, the city’s development plan has reached a turning point where economic growth is no longer the primary goal, spearheaded by Alderman Reinier van Dantzig of Spatial Planning.
The new regulation prohibits the construction of any new data centers unless they can show that they would directly benefit the city. This choice represents a major change in Amsterdam’s thinking about its infrastructure and urban area, not only a stopgap solution. Now that physical space and electricity grid capacity are in short supply, the city is giving priority to projects that will help it achieve its goals for sustainable growth.
This statement comes after the city recently said that it would want to see Schiphol Airport - another major shareholder-owned organization - reduce operations. Together, these actions highlight a more general policy change in Amsterdam’s government, favoring sustainable urban expansion and environmental concerns above conventional economic growth models.
New data centers provide a variety of difficulties, from limited space to the pressure they put on the electrical grid and Amsterdam’s environmental goals. The local administration moved to tighten the rules for new data center businesses in response. The public inspection process for this updated policy was completed, and it is anticipated to go into effect in the second quarter of 2024. The City Council has already authorized a one-year moratorium on new data center sign-ons in advance of these revisions.
‘No, Unless’ Scenario
Alderman Van Dantzig, who is also in charge of housing, highlighted the city’s dedication to sustainable development by saying, “Space is limited in Amsterdam. Not only real space, but also grid space for electricity. With data centers that directly assist the city, we want to expand in a sustainable manner.”
Amsterdam’s data center construction currently faces a ‘no, unless’ scenario. This implies that new data centers won’t be approved unless they directly benefit Amsterdam and satisfy strict new environmental standards. Examples of this may include moving a data center to make room for a new residential neighborhood. Under the previous regime, currently running data centers and applications will remain.
There are multiple data center clusters in Amsterdam, the most notable ones being found in Science Park and the Amstel III business district. The importance of these facilities in supplying processing power to industries like science is being emphasized by the city, which is actively collaborating with them to investigate the possibility of combining residual heat and other cooling methods.
Amsterdam Moratorium in 2019
The Amsterdam Metropolitan Government did tighten its policies towards the data center sector before through a moratorium. In 2019, the construction of new data centers in the area - which included Haarlemmermeer - was also halted. The Dutch data center sector, which prides itself on its devotion to sustainability, was taken aback by this decision at the time. The abrupt and stringent nature of the ruling, which contrasted with data centers’ limited physical footprint in relation to other businesses, took the industry by surprise.
In conclusion, Amsterdam’s decision to limit the establishment of new data centers signifies a dramatic change in the way the city views infrastructure management and urban growth. Alderman Reinier van Dantzig’s initiative marks a shift away from the prioritization of economic development and toward sustainable growth and the effective use of scarce resources. The city’s ‘no, unless’ approach emphasizes its dedication to including projects that directly benefit its residents and support its environmental objectives. As seen by comparable policies at Schiphol Airport, the focus on sustainable development is not an isolated incident but rather a component of a broader trend in Amsterdam’s government.
