The core European data centre markets are set to enjoy record growth in 2023, according to JLL’s latest EMEA data centre report.
The company said the region’s leading data centre hubs of Frankfurt, London, Amsterdam, Paris and Dublin (FLAP-D) are set to grow by 17% year-on-year, with an additional 432MW of supply added. Take-up of 392MW is anticipated this year – a 32% increase on last year.
In 2022, hyperscale development accounted for 83% of all transactions and that trend is expected to continue this year, following 482MW of pre-lets signed in 2022, with the majority of these schemes due to come online over the next 12 months.
JLL expects London to retain its position as Europe’s largest and most mature data centre hub, with the Frankfurt, Madrid and Berlin markets also forecast to grow rapidly.
Tom Glover, head of EMEA data centre transactions at JLL, said: “The data centre industry continues to show incredible resilience in what is a very challenging market. Demand across Europe’s core markets continues to outstrip supply, but challenges in securing prospective sites and sustainable power sources are leading growing interest in the region’s secondary markets.”
Daniel Thorpe, senior research analyst, EMEA, at JLL, added: “2023 is set to be another record year for activity in the market. Data centre growth will be underpinned by continued enterprise transition to the cloud, growth in new technologies such as AI, growing user demand for low latency streaming and gaming; and the further expansion of 5G networks.”
