Europe’s developing data centre market is expected to create an additional 8,462,000 sq ft of demand for logistics space over the next three years, according to new research from Savills.
The company reached its conclusion after analysing recent logistics and data centre activity in Dublin, Ireland, and Houston, USA.
In Dublin, occupiers connected to the data centre supply chain – such as businesses that maintain spare parts and the equipment needed to run an operational unit – accounted for 10% of annual logistics take-up in 2025, totalling 225,000 sq ft, and Savills is aware of a further 500,000 sq ft of space under offer from tenants involved in the sector.
Savills’ research also indicates that three of the top five deals in the Houston market in Q4 2025 were driven by occupiers servicing data centre or energy grid-related demand, to support the market’s expansion. The four deals in Houston accounted for 11% of take-up in H2 2025, in line with the 10% of take-up in the Dublin market in 2025.
Kevin Mofid, head of EMEA logistics research at Savills, said: “Much of the commentary around the growth of the data centre market is focussed on land sales and power yet very little has been written about the ripple effect into the logistics market. Whilst our analysis is at an early stage it is interesting to observe that in markets which have seen exceptional growth in data centres we are now seeing the suppliers to the data centre community take traditional logistics warehouses.
“Taking an average of 8,900 sq ft of logistics space per MW and extrapolating demand for the dominant European data centre markets, Frankfurt, London, Amsterdam, Paris and Dublin (FLAPD), where 950 MW of space is currently under construction, we would estimate an additional 8,462,000 sq ft of demand for logistics space. While this trend is in its early stages in Europe, we’re already seeing evidence of this in the UK, with data centre power solutions and AI infrastructure firm AVK SEG leasing 140,000 sq ft of logistics space in the North West of the UK.”
Sam Quellyn Roberts, director, global occupier services/EMEA logistics markets, at Savills, added: “Across Europe, we are starting to see 3PL occupiers and specialist contractors start to take space to service the data centre community. In the first instance it is no surprise such requirements are in the more advanced data centre markets of Ireland, the UK and The Netherlands. However, as data centres continue to proliferate across Europe we expect this trend to emerge elsewhere. Whilst occupiers are currently benefitting from generally higher vacancy rates across Europe development pipelines are trending downwards and as time progresses it may become more challenging to procure these mission critical warehouse facilities.”
