Europe's data centre market is poised for record growth in 2025, with colocation data centre capacity expected to surge by 22% year-on-year to 855MW, according to new research by CBRE.
This year would mark the fastest growth rate in four years and set a new high for data centre take-up in Europe since 2021.
The robust demand is largely driven by hyperscaler requirements, leading to the development of larger, often single-let, wholesale facilities across the continent.
Consequently, facilities of unprecedented size are anticipated to be constructed in Europe this year. Nearly half of the annual take-up is expected to be concentrated in London and Frankfurt, Europe's two largest colocation data centre markets.
Kevin Restivo, Head of European Data Centre Research at CBRE, said: "We expect a buoyant year of take-up despite limited leasing activity in Q1. Hyperscaler and AI requirements have led to greater demand that will manifest itself in record take-up this year. Data centres form the backbone of cloud regions and artificial intelligence infrastructure in Europe, and we strongly believe the European colocation data centre space market is poised for continued heady growth."
However, supply continues to be constrained, with demand for colocation data centre space projected to outstrip existing capacities for the third consecutive year.
