Data Center Power Dilemma: Demand Outpaces Supply in EMEA

Despite increasing demand driven by generative AI, the growth of data center capacity in EMEA has slowed in 2025, primarily due to electricity supply shortages. The report by Savills highlights an imbalance between surging demand and limited power availability, impacting timeline of new projects.

Despite a surge in demand for data center capacity across Europe, the Middle East, and Africa (EMEA) in 2025, the sector has witnessed a slowdown in growth. This phenomenon is attributed to electricity supply shortages delaying project timelines, according to a report by real estate services firm Savills.

The report highlights that since the launch of ChatGPT in late 2022, global data center demand has increased considerably. Investors and governments are wagering that generative artificial intelligence will transform work and lifestyle habits. Consequently, 850 megawatts (MW) of power has been brought online so far in 2025, which is 11% less than in the same timeframe of the previous year.

Despite these challenges, Savills’ report indicates a strong demand persistence. Live data center capacity has increased 12% to 11,400 MW compared to last year. Total contracted power capacity has grown 12% year-on-year, a testament to the relentless demand, with 91% of capacity leased by Q3 2025, up from 87% in 2022.