Due to the exploding demand and following several quarters of constrained delivery, the EMEA data centre market is entering a transformative phase, marked by a sharp acceleration in development activity. Construction is ramping up significantly, supported by a robust pipeline of projects across the region. Currently, around 2,800 MW of capacity is under construction, with an additional 11,300 MW already committed, together representing 27% of the existing operational supply.

Of the capacity under construction, approximately 700 MW is expected to go live this year, with the remainder scheduled for delivery in subsequent years. Development is heavily concentrated in key markets, with France leading at 11% of total capacity under construction, followed by the UK (10%), Sweden (9%), Germany (8%), and the Netherlands (7%). While these established hubs continue to dominate, the fastest growth is occurring in emerging markets. Portugal has seen a remarkable 366% YoY increase in construction activity, with Finland (241%), Norway (134%), Austria (66%), and Belgium (63%) also posting strong gains.

The committed pipeline signals a further wave of expansion. Again, Portugal stands out with a 392% annual increase in committed capacity, followed by Greece (220%), Spain (138%), the UAE (114%), and Norway (82%). These trends reflect a strategic shift by operators to diversify their footprints beyond traditional tier-one markets, driven by demand for more localised infrastructure and the availability of land and power in secondary locations.

Beyond current construction and commitments, an additional 21,000 MW of early-stage developments are planned across EMEA for delivery over the next five years. This unprecedented pipeline suggests the market is preparing for a step-change in scale, as operators position themselves to meet surging demand from AI and cloud services.

Looking ahead, supply distribution is expected to become slightly less concentrated in traditional strongholds such as the UK, Germany, France, Ireland, and the Netherlands. While these markets will remain central, growth is increasingly extending into Southern Europe, with Spain and Italy emerging as key beneficiaries of the next wave of development.

The rise of AI is reshaping the scale of data centres. A decade ago, a 20–30 MW facility was considered large; today, new builds commonly target 80–100 MW. This shift toward mega-campuses is driven by the immense computational power required for generative AI and cloud workloads, which benefit from economies of scale and proximity to robust energy infrastructure.

The market composition is also evolving, with a pivot from public cloud self-builds to wholesale colocation. As public cloud adoption matures, enterprises are increasingly adopting hybrid strategies, retaining workloads in colocation environments for greater control and compliance. Building hyperscale facilities is capital-intensive, prompting many cloud providers to lease wholesale space, especially in secondary markets, rather than invest billions in infrastructure.

Wholesale colocation providers, often backed by private equity and infrastructure funds, are gaining momentum by delivering capacity more quickly and flexibly. Since 2019, wholesale colocation has experienced rapid growth, now accounting for 39% of total operational power capacity in the EMEA region. This share is projected to rise to 62% within five years. In contrast, public cloud self-builds, currently at 20%, are expected to decline to 13%.

New entrants are driving this shift, with firms like Merlin Properties focusing on Spain and DATA4 expanding in France and Italy. These players are reshaping the landscape, contributing to a more diversified and dynamic EMEA data centre market.

>>  For more information, please contact our EMEA Data Centre Advisory team

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