According to research released by CBRE Group on Wednesday, Europe is anticipated to experience a record level of new data centers this year, driven by the increasing focus of companies on artificial intelligence and cloud computing operations.
In recent years, the demand for data center capacity has surged, accompanied by the rising energy consumption required to sustain them as companies embrace new technologies to enhance their business operations.
CBRE, a commercial real estate services and investment firm, forecasts that Europe could witness the introduction of data centers with a power demand of 937 megawatts in 2025, setting a new record for the region. This would signify a 43% increase from the 655MW delivered in 2024.
Kevin Restivo, head of European data center research at CBRE, noted, "The data center construction boom will continue unabated. Available power and appropriate land, government incentives, and hyperscaler ambitions are driving the rapid growth of markets like Milan, in addition to the continued expansion of major markets like London and Frankfurt."
CBRE projects that more than half of the projected new capacity, 57%, will be concentrated in primary European data center markets including Frankfurt, London, Amsterdam, Paris, and Dublin.
Despite challenges in procuring power and suitable land for new facilities, customer demand for capacity is escalating, leading to rapid growth. CBRE anticipates double-digit supply growth in 5 of the 10 secondary European markets they monitor in 2025. By year-end, seven of these markets, including Milan and Madrid, are expected to have 100MW of supply or more, up from just four markets at the close of 2022.