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Data Center News > Blog > Infrastructure > EMEA data centre market faces investment surge and capacity challenges
Infrastructure

EMEA data centre market faces investment surge and capacity challenges

Last updated: October 10, 2025 3:42 am
Published October 10, 2025
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EMEA data centre market faces investment surge and capacity challenges
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The newest EMEA Knowledge Centres Report by world property consultancy, Knight Frank, highlights the burgeoning capital wants of the area’s knowledge centre sector. Greater than £422 billion is required to finance the event pipeline, considerably together with the £122 billion earmarked within the first half of 2025.

With EMEA’s operational knowledge centre inventory now valued at £226 billion, this determine is projected to extend by 11.4% in 2025. As of the mid-year level in 2025, the area’s market has gathered an enormous 50GW provide, a staggering 27.8% rise from the top of 2024. Dwell IT capability hit 11.3GW, supplemented by 649.6MW price of recent tasks.

Among the many most distinguished hubs, Paris leads with the quickest development price, needing £32.9 billion in capital to fulfill the 22.3% provide growth forecast. Town has seen a 75.1% provide surge reaching 3.4GW, with stay IT capability now at 611.2MW. The speedy development is pushed partly by AI calls for and partnerships with main tech corporations.

In distinction, Frankfurt excels because the area’s leasing exercise chief, requiring £30.4 billion whereas marking a market valuation of £19.4 billion. A formidable take-up price of 207MW was recorded over the earlier 12 months, bolstered by public cloud developments accounting for 93% of latest leases.

Sustaining its place as the most important market, London calls for over £44 billion in improvement capital, showcasing a valuation of £32 billion. Its capability has expanded by 15.3%, reaching a big 5.1GW.

Exterior the main trio, Milan ensures its place because the fastest-expanding market with expectations of a 47.9% development price, whereas Dublin stays one of many area’s highest valued at £25.7 billion regardless of a modest £14.8 billion capital requirement. In a notable southern flip, Johannesburg forecasts a 34.3% provide development.

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Rising demand trails the sector’s development, with an EMEA-wide colocation emptiness price at 9.5%. Stringencies in availability spotlight evident constraints, with decrease emptiness in bigger scale capacities.

In the meantime, hovering pre-leasing charges exacerbate stress with 55.2% of ongoing constructions already pre-let and 22.1% of dedicated capacities reserved. Cities like Dublin, Milan, and London exemplify these traits, that includes placing pre-leasing figures of 94.8%, 92.6%, and 87.8%.

Stephen Beard of Knight Frank succinctly appraises the scenario: “The story of 2025 thus far is considered one of scale colliding with shortage. We’re seeing document ranges of provide delivered and deliberate throughout EMEA, but demand from AI and cloud is rising even sooner.”

The report casts gentle on a market outlined by speedy capital influx, vigorous growth, and relentless shortage. With AI and cloud adoption gathering tempo, the EMEA knowledge centre sector stays poised on the vanguard of world know-how improvement.

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TAGGED: capacity, centre, Challenges, data, EMEA, Faces, Investment, market, Surge
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