Overview

Europe’s data centre market remains buoyant, with strong demand and near-universal expansion plans from developers. But challenges around skills, supply chains, and soaring power costs persist. As the industry pushes toward net zero, waste heat utilisation is moving from theory to reality, with opportunities to support district heating, urban farming, and even swimming pools. What was once seen as inefficient by-product is fast becoming a community asset.

5 main takeaways

• Demand keeps rising. 89% expect falling supply and rising demand, while 98% of developers plan to expand portfolios in the next year.
• Skills gap widens. 98% foresee further declines in available skilled staff, making access to talent a major factor in future data centre location decisions.
• Power consumption climbs. 81% expect higher usage in the next three years, and 88% say power costs will fuel demand for efficiency-focused facilities.
• Waste heat moves mainstream. Economic concerns are easing—15% fewer respondents see viability as a barrier—and planning rules increasingly mandate its reuse.
• From waste to value. Data centre heat is already being redirected to district heating, greenhouses, urban farms, and pools, cutting emissions while strengthening community resilience.

Read the full report →

‍