In total across Europe, there are currently slightly over 1,350 data centre facilities. These comprise 67% colocation sites, 18% wholesale, 8% reseller, and 7% proprietary establishments. This means there are 1,250 commercial data centres (excluding proprietary data centres), representing approximately 10 million sqm of space and around 10,300 MW. The majority of these facilities are concentrated in Western European nations, which collectively hold 66% of the continent’s data centre power capacity. The FLAPD markets – Frankfurt, London, Amsterdam, Paris, and Dublin – particularly stand out in this regard.  

Recent years have witnessed a remarkable surge in new data centre developments, with over 129 completed commercial projects across Europe in the last three years alone, contributing over 2,000 MW in power capacity. Looking ahead, we anticipate an additional 94 European commercial data centre schemes planned in the next three years, adding approximately 2,800 MW. With these new developments in the pipeline, the European data centre power capacity is projected to rise to approximately 13,100 MW by 2027. 

The majority of upcoming data centre capacity due to be delivered in the next four years remains concentrated in the FLAPD markets, comprising 65% of the total data centre pipeline. This concentration is due to the length of data centre planning processes, typically spanning around 24 months for permit, with a year for planning, and an additional year for construction. However, future supply in these markets is anticipated to be limited due to emerging laws and policies related to energy consumption and sustainability and high land and construction costs, posing increasing challenges for data centre development. Hence, an increasing number of new locations, such as Prague, Genoa, Berlin, Munich, Düsseldorf, Milan, Cambridge, and Manchester, are targeted for new projects. 

According to Data Center Dynamics (DCD), data centres manage 97% of global IP traffic. Considering this and the expected rise in internet bandwidth usage, European data centre capacity will need to triple by 2027, reaching approximately 22,700 MW to support the increased bandwidth. This highlights a significant gap in the planned infrastructure, which is projected to provide only 13,100 MW by 2027, falling short of the anticipated demand. However, it is important to note that this projection does not consider future technological advancements that could improve data centre efficiency and increase their power capacity. 

Despite numerous mergers and acquisitions within the sector, the European data centre market remains highly fragmented. There are currently 233 colocation data centre operators spread across Europe, with the top 10 collectively controlling 35% of the continent’s total data centre power capacity. Digital Realty leads the pack with 960 MW, closely trailed by Equinix at 640 MW. With an increasing number of non-specialists seeking to enter the market, such as Segro’s plan to build 24 sites in Europe, the market is expected to remain fragmented in the next four years.

_{Read the articles within Spotlight: European Data Centres below.}