Overview

Despite Europe’s economic uncertainty, demand for data centres continues to rise. Developers are pushing ahead with expansion, but inflation, skills shortages, supply chain strain and soaring energy costs are intensifying the pressure. Legacy facilities, with their inefficiencies and higher PUEs, risk becoming liabilities as the sector shifts toward renewables, retrofits, and AI-driven efficiency to meet net zero targets.

5 main takeaways

• Demand still resilient. Nearly all respondents expect demand to rise or hold steady, with developers and investors showing the strongest confidence despite macroeconomic volatility.
• Legacy vs. future-ready. Older facilities consume far more energy; retrofitting, alternative fuels (HVO, hydrogen), and AI-driven cooling are key to avoiding “legacy as liability.”
• Developers optimistic, but cautious. 95% plan to expand portfolios, though a growing share will proceed with only partial pre-lets secured, reflecting selective confidence.
• Skills and supply chains under strain. 96% report declining staff availability and 88% cite ongoing supply chain disruption, both inflating costs and delaying projects.
• Power as the defining challenge. 84% expect consumption to rise, 82% believe efficiency demand will grow, and over 80% target 90%+ renewable sourcing by 2032.

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