2-6-2025
Alternatives

EMEA data centre power capacity surges 11%

Savills' latest report reveals a significant 11% year-on-year increase in data centre power capacity across EMEA, reaching 10,850.71 MW across 2,641 live sites by Q1 2025. 

Lydia Brissy

An additional 2,706 MW are currently under construction, primarily in France, Sweden, the UK, Germany, and Ireland.
The early-stage development pipeline is substantial, totalling 17,513 MW, with a growing focus on Southern Europe (Spain and Portugal) due to improved infrastructure and investor interest. While data centre rents have stabilised after three years of rapid growth, further increases are anticipated in 2025 due to high demand, rising energy costs, and construction inflation.
The sector is also seeing evolving investment strategies, with increased joint ventures between operators and institutional investors. New operators are boosting competition and deal activity, while real estate firms are actively entering the market by launching or acquiring data centre platforms. The increasing difficulty in securing power is also leading landowners to recognise the value of their sites for data centre development.
Cameron Bell, director EMEA Data Centre Advisory at Savills, commented: “With portfolios becoming increasingly capital-intensive, investors are exploring creative deal structuring options. These may include IPOs, spin-offs, or asset-level syndication strategies, allowing multiple investors to participate in large-scale developments or share exposure to entire portfolios. The investment market is becoming more sophisticated, with liquidity considerations starting to reshape how deals are structured and capital is allocated.”
Lydia Brissy, director in Savills' European commercial research team, added: “The Artificial Intelligence market in Europe is poised for explosive growth, which, in turn, will further increase demand for rapid data centre development. Statista forecasts that the European AI market size will be c.€52.94 bn by the end of 2025, rising at a compound annual growth rate of 26.27% to reach €215.93 bn by 2031. This trajectory underscores the critical importance of infrastructure development. While it cannot rival other regions on scale alone, Europe’s advantage lies in predictability.”

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