Overview

Demand keeps surging while available supply tightens across Europe’s data centre market. Operators and end-users are expanding—especially via colocation—yet power availability/costs, skills gaps and supply-chain strain are shaping where, how and how fast projects get built. Developers remain bullish but more selective on pre-lets, and the industry is accelerating toward more efficient, renewable power.

5 main takeaways

• Rising demand, tighter supply. ~98% see demand holding or increasing, with most suppliers reporting rising demand and falling supply.
• Colocation and outsourcing up. Corporates are shifting to third-party solutions; utilisation is higher in outsourced space (often 80%+), and most expanded external capacity in the last six months.
• Developers are expanding—but cautiously. 95% grew portfolios and 88% plan to add more, yet a larger share now require higher pre-let thresholds before breaking ground.
• Power is the decisive factor. Availability (and price) of power is the top site driver, pushing efficiency upgrades and a strong move toward renewables over the next 3–5+ years.
• People and parts are pinch points. Persistent skills shortages (design, build, ops) and supply-chain disruption are inflating costs and timelines, with many providers expecting further base-cost increases.

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