Artificial intelligence (AI), hybrid cloud adoption and the “relentless” demand for data are propelling growth in the global data centre market, according to Knight Frank’s Global Date Centres – Forecast Report 2025.
As enterprises seek scalable, high-performance computing solutions, data centre operators are responding with rapid expansion and innovation to meet bespoke customer needs, with strong investment activity reported in Tier 2 and Tier 3 cities, which offer alternative locations with more accessible land and power infrastructure.
The report found that while major data centre hubs such as London, Frankfurt, Amsterdam, Paris, and Dublin (FLAP-D) remain critical, developers are expanding into emerging markets, including Lille, Düsseldorf, the North of England, Lisbon and Bilbao.
Power constraints, regulatory pressures and sustainability issues remain key concerns for data centre operators who are increasingly adopting renewable energy solutions, advanced cooling technologies, and efficient infrastructure designs to align with global climate goals.
Stephen Beard, global head of data centres development and investment at Knight Frank, said: “The data centre market is at a pivotal moment, experiencing unprecedented demand driven by AI, cloud computing, and digital transformation. While challenges such as power availability and regulatory complexities persist, the opportunity for investment, innovation, and sustainable expansion has never been greater. Knight Frank’s global platform, combined with our deep market insights, positions us uniquely to guide investors and operators through this evolving landscape.”
