Colliers' Report on EMEA Data Centres Signifies Power Shift

To readers of Data Centre Magazine, it will come as no surprise that power availability has become the biggest constraint on Europe's data centre market.

Building on that, Colliers' latest EMEA Data Centre Markets Report finds that while customer demand for new data centres is strong, access to electricity is now determining where new capacity can be delivered.

While demand from hyperscalers, AI workloads and sovereign cloud initiatives remains, the report argues that the industry's biggest challenge is no longer attracting customers.

It is securing enough electricity to build and operate new facilities.

The findings highlight a market in transition.

Across Europe, the Middle East and Africa, operational data centre capacity has reached 12.5GW, yet expansion in established hubs is constrained by grid access, planning delays and limited land availability.

Those pressures are redirecting investment towards markets with stronger energy infrastructure and faster deployment prospects.

Capital follows power

According to the report, traditional FLAP-D markets – Frankfurt, London, Amsterdam, Paris and Dublin – remain among Europe's most important data centre locations.

However, within these markets, persistent constraints on power availability are making it more difficult to convert demand into operational capacity.

As a result, operators are exploring alternative energy strategies, including self-generation and microgrids, particularly in Ireland, Germany and the UK where grid limitations have become especially acute.

The changing landscape is also influencing investor priorities.

"Power has become the defining filter for capital in this sector," says Gonzalo Martin, Head of Data Centres Capital Markets, EMEA.

"Investors are no longer simply backing demand growth, they are prioritising assets and locations where energy access is secure and deliverable.

"That is accelerating capital rotation into markets that can support deployment at scale, even if they historically sat outside the core."

New markets gain momentum

Colliers has identified Madrid, Milan, Lisbon, the Nordics and selected Central and Eastern European markets as key beneficiaries of this shift.

These locations are attracting increasing attention as developers seek opportunities where infrastructure constraints are less severe than in Europe's busiest data centre clusters.

The pipeline reflects that diversification.

London, Frankfurt, Paris, Milan, Helsinki and Riyadh together account for 7GW of capacity either under construction or in the planning stages, demonstrating that established hubs are critical while newer markets play a growing role in supporting future demand.

Even so, the report cautions that headline project announcements should not be mistaken for guaranteed future capacity.

Although 78GW of early-stage projects have been announced across EMEA, Colliers argues that successful delivery will depend far more on infrastructure readiness than market demand.

The delivery gap widens

That distinction between announced developments and operational facilities is becoming more significant as utilities and developers struggle to keep pace with the industry's expansion.

Lottie Tollman, Head of Data Centres Advisory for EMEA, says: "The divergence between announced capacity and deliverable supply is widening.

"Grid connection timelines, permitting complexity and energy requirements are now the critical variables. Markets with aligned energy infrastructure and policy clarity will capture disproportionate growth over the next cycle."

Power infrastructure has become the principal determinant of which markets can convert investment interest into live capacity.

That means developers must evaluate projects through a broader lens than land availability or customer demand alone.

Grid connection timelines and energy resilience influence both development schedules and investment decisions.

Middle East strategy evolves

Beyond Europe, Colliers highlights the continued expansion of the Middle East's data centre market, led by the UAE and Saudi Arabia.

State-backed digital transformation programmes and hyperscale-ready infrastructure continue to support new developments across the region.

However, the report notes that geopolitical tensions are changing how international investors assess these opportunities.

Investors are placing greater emphasis on resilience, redundancy and long-term operational stability when evaluating projects.

Taken together, the findings suggest that while demand across EMEA remains strong, the next phase of data centre growth will be determined less by customer appetite and more by the availability of power.