European Data Centers Surge Amid AI and Cloud Expansion

Europe is on track to reach unprecedented levels of new data center developments this year. Driven by the growth in AI and cloud computing, the region could see 937MW of power demand by 2025, marking a record high. Factors like hyperscaler ambitions and government incentives are fueling this surge.

Europe is set to see an unprecedented surge in new data center developments, as leading tech companies increasingly expand their artificial intelligence and cloud computing operations, according to CBRE Group research published Wednesday.

The demand for data center capacity has increased dramatically, with projections indicating a new peak of 937 megawatts of power demand by 2025, surpassing any previous records for the region, as noted by CBRE, the commercial real estate services and investment entity.

The significant growth is largely being propelled by companies' need for more data processing capabilities, government incentives, and emerging markets like Milan gaining traction. Key markets such as London and Frankfurt also continue to expand, with over half of the 2025 capacity set to be installed in prime locations like Frankfurt, London, Amsterdam, Paris, and Dublin.

(With inputs from agencies.)