The colocation data centre vacancy rate dropped below 10% in the key European markets of Frankfurt, London, Amsterdam, Paris and Dublin (FLAPD) for the first time ever in Q2 2024, according to new research from CBRE.
The 44MW of take-up recorded in Q2 exceeded new supply of 30MW for the fourth consecutive quarter.
As a result, the vacancy rate of the FLAPD markets fell to 9.8% and is expected to fall to 7.9% by the end of the year according to CBRE’s data.
Data centre providers are finding it increasingly difficult to accommodate continued strong demand from hyperscalers given the lack of available power and appropriate land in the primary markets of Europe.
CBRE anticipates 646MW of new supply to be delivered this year, and for take-up to reach 693MW across the 15 European markets tracked by the firm.
Kevin Restivo, head of European data centre research at CBRE, said: “Data centre capacity is an increasingly precious commodity given the considerable demand for space and competition for it. Providers that can secure the necessary resource and build data centres are able to command higher prices for the space.”
