London, Berlin, Paris lead for AI-driven office demand

London, Berlin, Munich, Paris, and Dublin are considered Europe's top cities for office space demand due to their strong business sectors and skilled workforces, according to Savills. 

Saviills European Occupier

This is largely driven by major tech companies like Google, Amazon, Microsoft, and Meta, who are investing heavily in AI infrastructure, with an estimated $750 billion spend on servers and data centres in 2025-2026. 
This investment fuels a flow of venture capital into European AI and Machine Learning companies, with €16 bn invested in the first three quarters of 2025. Savills believes these established tech hubs will therefore see more stable demand for office properties.
London, in particular, stands out due to its large and mature tech industry, attracting €26.5 bn in AI/ML venture capital over the last decade and boasting around 120,000 software engineers. Its global standing, excellent universities, and supportive regulations make it a prime location for talent and investment.
Andrew Barnes, director in Savills central London tenant representation team, said: “Established AI companies are expanding rapidly across London, with Synthesia signing for 2,000 m2 at Regents Place, upsizing by four times its previous office footprint. Elevenlabs, Salesforce and PhysicsX have also signed for office space in London over the last 12 months and we understand that Databricks, which only moved two years ago, is already in the market again for up to 9,300 m2.”
Mike Barnes, director in Savills European commercial research team, commented: “AI is an additional long-term risk to the office sector, but we believe any changes to office-based jobs are likely to be incremental over the long term as roles are augmented, rather than automated. Oxford Economics forecasts EU office-based employment to rise by 4% over the next 10 years, with new jobs created, including AI engineers, data scientists, and AI ethics officers.”
Christina Sigliano, EMEA head of Global Occupier Services, added: “Relationship building, creativity, and leadership are among the growing list of skills employers will seek, and the workplace will be more focused on generating new interactions, requiring larger meeting rooms, focus pods, and breakout areas to cater for activity-based working.”