News / From the associates

According to the latest analysis by CBRE, demand for data center capacity dedicated to artificial intelligence grew rapidly in Europe throughout 2025, driven primarily by so-called “neocloud providers”—new cloud operators specializing in high-performance infrastructure and AI services—which are joining traditional global hyperscalers. In the first nine months of the year, these players acquired 414 MW of capacity—more than three times the 2024 level—with a strong concentration in the Nordic countries due to lower energy costs and greater availability of space. The slowdown in demand from hyperscalers has made neocloud providers more attractive to European operators, who, however, are demanding higher fees and greater guarantees to offset the risk. On the supply side, 114 MW were delivered in Q3, primarily in major markets such as London and Paris, while Frankfurt and Dublin saw no new deliveries. A record 871 MW of new capacity is expected by year-end, driven by the expansion of cloud regions and AI requirements. Quarterly take-up (114 MW) was slightly lower than new deliveries, an unusual occurrence linked to the fact that some wholesale facilities were completed only partially pre-leased. On an annual basis, however, take-up is expected to exceed supply, supported by numerous pre-leases signed in 2024. The European market continues to show a strong imbalance between demand and supply: the vacancy rate fell to 8.6% in Q3 and is expected to close 2025 at 7.8%, less than half of 2021 levels. The shortage of capacity is particularly evident in FLAPD markets—especially London and Frankfurt—and in cities like Milan, with a vacancy rate of 4%. Pressure from hyperscalers and AI operators is leading buyers to book capacity well in advance and to consider even less central assets in order to secure the necessary space.

Download the report: https://mktgdocs.cbre.com/2299/356288aa-0100-4b2c-b519-40c0228d5278-170902235/European_Data_Centres_Figures_.pdf