Overview

The European data centre industry faces its toughest crossroad in decades: rising demand against falling supply, soaring energy costs, and looming regulation. With governments under pressure to hit climate targets, the sector must decide whether to lead with proactive self-regulation and innovation, or risk rules being imposed. Developers remain bullish, but supply chains, skills gaps and power challenges are reshaping the landscape fast.

5 main takeaways

• Demand outpaces supply. 85% of respondents report rising demand against tightening supply, with near-universal expectation of continued growth.
• Outsourcing grows. Corporate occupiers lean heavily on third-party solutions, with over 70% of their portfolios now externally managed and highly utilised.
• Developers remain confident. 95% expanded in the past year and expect to keep growing, though most now require 50%+ pre-lets before breaking ground.
• Power costs dominate. Availability of power is still the top site driver, with efficiency and renewable sourcing accelerating as costs climb.
• Regulation looms. 90% expect greater regulation tied to Net Zero, but three-quarters believe self-regulation is the best route to protect growth and credibility.

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