Europe Set to Experience Record Growth in Data Centres

Rising Demand Amidst Technological Advancements

Europe could see a record level of new data centres this year, according to research released by CBRE Group.
Companies are expanding their artificial intelligence and cloud computing capabilities, leading to significant
demand for data centre capacity.

Forecast for 2025

The European market is projected to welcome data centres accounting for 937 megawatts (MW) worth of
power demand by 2025. This would represent a new record for the region.

Significant Growth Expected

This anticipated growth marks a jump of 282 MW, or 43%, from the 655 MW of capacity delivered in 2024,
according to CBRE, a leading commercial real estate services and investment firm.

Factors Driving the Boom

“The data centre construction boom will continue unabated,” said Kevin Restivo, head of European data
centre research at CBRE. He cited several key factors driving this rapid growth.

Key Drivers

Available power and suitable land, government incentives, and the ambitions of hyperscalers are essential
components propelling this expansion. Key cities like Milan, London, and Frankfurt are particularly poised
for growth.

Leading Data Centre Markets

According to CBRE, over half of the expected new capacity—57%—is anticipated to be delivered in leading
European data centre markets, which include Frankfurt, London, Amsterdam, Paris, and Dublin.

Adaptive Response to Market Demands

Customer appetite for data centre capacity has surged, even as providers face challenges in sourcing
power and land for new facilities.

Secondary Market Growth

Despite these challenges, CBRE projects double-digit supply growth in five of the ten secondary European
markets they monitor for 2025.

Emerging Markets

Notably, seven of those secondary markets, including notable cities like Milan and Madrid, are expected
to achieve a capacity of 100 MW or more by the year’s end, a significant increase from just four markets
at the end of 2022.

Conclusion

With the rise of artificial intelligence and cloud computing, Europe is on the brink of an unprecedented
expansion in data centre capabilities. As companies continue to adapt to changing technologies, the
demand for reliable and robust data infrastructure will remain critical, shaping the future landscape of
the technology sector.

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