The figures reveal a persistent difficulty for European energy policy: although the continent has an increasingly interconnected electricity market, businesses and consumers remain exposed to very different underlying wholesale costs depending on location.
According to European day-ahead electricity market data, Sweden’s SE2 bidding zone recorded an average of €6.23 per megawatt-hour, while Finland stood at approximately €6.65. Romania reached €255.20, roughly 41 times northern Sweden’s price. Bulgaria registered approximately €254, Hungary €241 and Greece €225. Germany recorded approximately €155, Belgium €160 and France €162.
These are wholesale prices for delivery on 27 October, not final bills for households or businesses. Their differences nevertheless raise questions about how effectively Europe’s electricity networks distribute power from areas of lower-cost generation to those facing greater costs.
European electricity trading is organised through interconnected national and regional markets. Cross-border capacity allows relatively inexpensive power to reach regions where demand is greater or local generation is more expensive.
When transmission capacity is adequate, neighbouring prices can converge. Physical networks, however, have limits. Congested interconnectors can prevent additional imports even when large price differences exist.
Other influences include availability of power stations, renewable output, fuel prices, consumption and system stability. Regions with substantial hydropower, nuclear generation or strong renewable production may experience comparatively low prices. Markets relying on gas-fired generation can be more expensive when gas plants are needed to satisfy the final increment of demand.
The result is a market responding to common European conditions but still shaped by local generation and transmission constraints.
The European Union Agency for the Cooperation of Energy Regulators, ACER, has repeatedly examined the causes of regional price divergence. In its 2026 assessment of cross-zonal electricity trade, the agency considered unusually high prices and limited access to lower-cost power in southeastern Europe.
Constraints include available cross-border capacity and shortages of flexible generation able to respond to changing renewable output, especially in the evening. Countries including Greece, Bulgaria, Romania, Hungary, Croatia and Slovenia have encountered substantial regional differences.
Those findings do not prove the cause of each price movement on 27 October. They do, however, explain why disparities can persist despite common market rules. ACER has advocated improved coordination among transmission operators, more effective use of existing networks and additional flexibility through storage and demand management.
Energy-intensive industries, including steel, chemicals and fertiliser production, are particularly sensitive to electricity costs. Where contracts are exposed to wholesale markets, sustained regional price differences can influence output and investment decisions.
The relationship between wholesale prices and bills is not immediate. Firms may hedge prices, use long-term contracts or produce their own power. Network charges, taxes and government support also affect the amount paid. Still, persistent market differences can shape industrial competitiveness.
As EU Today reported, EU energy ministers are due to examine proposed changes to electricity network charges and market administration on 29 October. Network tariffs are distinct from wholesale prices, but both affect total electricity costs.
According to ACER’s energy-market monitoring, renewable sources represented around half of EU electricity generation in 2025. Solar energy can reduce prices during the day, but output falls sharply towards evening, sometimes requiring more expensive power stations to increase generation.
This increases the value of storage, flexible production, responsive demand and international connections that can balance surpluses and shortages between regions. Yet major transmission lines can take years to complete owing to planning, permitting, investment and construction requirements.
The priority is therefore not simply to install more renewable capacity. Europe’s grids and supporting technologies must be capable of moving and using that output efficiently.
A single day’s wholesale prices should not be mistaken for long-term average electricity costs or a permanent competitive advantage. Nevertheless, the persistence of regional disparities documented by regulators shows the problem extends beyond isolated daily volatility.
For EU institutions, the question is whether further market integration can make energy more affordable while preserving incentives to invest in generation and transmission. National governments must balance security of supply, infrastructure financing and industrial competitiveness.
Electricity trading across Europe is increasingly integrated. The physical systems supplying it remain considerably less uniform. Until those constraints are addressed, the price of power will continue to reflect geography as well as the underlying cost of energy.
With public opposition toward data centers growing and midterm elections on the horizon, politicians across the spectrum have introduced overreaching policies to stymie data center development and ease voters' minds. These politicians now include President Donald Trump, who has historically been a staunch supporter of the industry.
"New and large, in some cases gigantic, Data Centers are mandated by me to make their own electricity, and give or sell any excess back to the local community, or grid," Trump declared on Truth Social on Wednesday. "If companies want to make their Data Centers popular, pay the community, and/or individuals within the community, a 'dividend.' I have watched the process closely, and Data Centers that were highly unpopular in a certain area have become extremely popular when a financial deal is struck."
While Trump has suggested that power plants pay for their own power before, these comments are in stark contrast to him saying less than a couple of months ago that "the only reason that communities throughout the U.S.A. should not want Data Centers is if they want to end up being backward and poor." Still, the president is not wrong that the strategy could boost data centers' popularity; polling regularly shows that concerns over higher energy prices are one of the main reasons people oppose data centers in their communities.
However, mandating that these power plants "make their own electricity" is the wrong way to accomplish this objective, in part because generation costs are not the leading factor in higher electricity prices—transmission infrastructure, such as wires and poles, is. And regulatory barriers, as well as a lack of competition in the building of this infrastructure, are mostly to blame.
Regardless, if the goal is to have data center companies produce their own electricity, easing regulations would have more impact than imposing a mandate. As Travis Fisher, director of Energy and Environmental Policy Studies at the Cato Institute, tells Reason, "If a tech company buys electricity from the owner of a power plant, in most states the power plant owner then becomes a public utility (even if the transaction occurs off-grid), which brings heavy scrutiny in the form of economic regulation."
To ease these regulatory barriers, Fisher and other experts have advocated for a Consumer Regulated Electricity model that allows large-load customers to connect directly to unregulated power producers off the grid.
Fisher also notes that lower power costs don't automatically translate into lower utility rates. He tells Reason, "Even if a data center were to bring a matching or beating amount of supply relative to their demand, based on the way retail rates work, I am not convinced that that guarantees that prices will fall."
On top of not solving the main driver of higher electricity prices, the mandate isn't needed because many data centers have already begun to produce their own power. A report from energy research firm Cleanview shows that operating power capacity dedicated to data centers has nearly doubled since June, while capacity under construction has roughly quadrupled. Additionally, companies including Anthropic and Microsoft are already volunteering to cover consumers' electricity costs.
By calling on power producers to make their own electricity, Trump joins the growing chorus of politicians who are convinced that the government, not the market, is best equipped to dictate how data centers grow and operate. And, in typical Trump fashion, a "mandate" on social media without any legal action behind it has left the public and investors to guess what, if anything, is actually coming.
Building power plants requires long-term planning and investments meant to last decades, making Trump's tendency to impose abrupt policy changes less than ideal. "The fact that the rules change, not just every four years, but occasionally overnight via tweet," says Fisher, does not make for "a great investment environment."
The post Trump Wants To Force Data Centers To 'Make Their Own Electricity.' Deregulation Would Work Better. appeared first on Reason Magazine.
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