Europe: Demand for data center in Europe outstrips supply

Feb 26, 2024 | Posted by Abdul-Rahman Oladimeji

Demand for colocation space in Europe’s data centers is outpacing supply despite an abundance of new facilities being built for customers accross the continent according to a new report. 

Kevin Restivo, head of European data center research at CBRE, said, “Hyperscalers have sought increasingly larger facilities that are tailored to their needs for some time. As such, the average size of new wholesale facilities in Europe has grown dramatically over the past two years and will only accelerate. However, there are fewer deals being struck by data center providers with their largest customers.”

Andrew Jay, head of data center solutions at CBRE, added, “Demand in Europe will only accelerate given that artificial intelligence (AI) workloads are expected to generate higher demand for capacity, as organizations look to enhance their operations by leveraging machine learning algorithms.