According to Savills latest research, data centre stock in Europe and the Middle East (EMEA) reached 2,641 live sites in Q1 2025, representing a total power capacity of 10,850.71 MW, an 11% increase year-on-year.
A further 2,706 MW is currently under construction, mostly concentrated in France, Sweden, the United Kingdom, Germany, and Ireland.
Early-stage pipeline projects amount to 17,513 MW, now also extending into Spain and Portugal. The international real estate advisor says that this suggests that southern Europe is increasingly attracting large-scale developments, supported by improving infrastructure and investor interest.
After three years of surging average rents, pricing appears to have stabilised across most lease categories in EMEA. However, further increases are expected in 2025, given the collision of surging demand, rising energy prices, and continued construction cost inflation.
The sector is witnessing a shift in capital deployment strategies, according to Savills. Investment volumes have risen, with a notable increase in joint ventures between data centre operators and institutional investors. The entry of new operators has intensified competition and driven up deal activity. Real estate players are increasingly seeking exposure to the sector by launching or acquiring platforms. As access to power becomes more difficult, landowners are recognising the inherent value of their sites for data centre use, further complicating acquisition dynamics.
Cameron Bell, Director EMEA Data Centre Advisory at Savills, comments: “With portfolios becoming increasingly capital-intensive, investors are exploring creative deal structuring options. These may include IPOs, spin-offs, or asset-level syndication strategies, allowing multiple investors to participate in large-scale developments or sharing exposure to entire portfolios. The investment market is becoming more sophisticated, with liquidity considerations starting to reshape how deals are structured and capital is allocated.”
Lydia Brissy, Director in Savills European commercial research team, says: “The Artificial Intelligence market in Europe is poised for explosive growth which in turn will further increase demand for rapid data centre development. Statista forecasts that the European AI market size will be c.€52.94 billion by the end of 2025, rising at a compound annual growth rate of 26.27% to reach €215.93 billion by 2031. This trajectory underscores the critical importance of infrastructure development.”
“While it cannot rival other regions on scale alone, Europe’s advantage lies in predictability. With regulatory frameworks like GDPR already in place and the AI Act progressing, the continent offers a transparent, investor-friendly setting.”