EMEA Research
The European data centre market has demonstrated remarkable resilience and momentum in H1 2025, recovering strongly from a subdued Q1 to reach 124.2MW of take up across FLAP-D markets. Despite ongoing power infrastructure challenges, the sector continues to attract unprecedented investment, with major announcements including Microsoft's $30bn UK commitment and the landmark US-UK tech Prosperity Deal securing £150bn in total investment.
Key findings:
Market momentum accelerates after a subdued first quarter
The European data centre market accelerated significantly in H1 2025, with FLAP-D take up reaching 124.2MW after a subdued Q1. London dominated with 43.5MW absorption as 2024's record pre-leasing activity converts to actual demand.
Vacancy rates reach record lows
Supply constraints have driven vacancy rates to historic lows, with Dublin at just 3.0%, London at an all-time low of 7.6%, and Berlin at only 1.4%. Amsterdam and Frankfurt maintain relatively higher rates, though all markets show continued tightening.
Secondary markets demonstrate resilience and growth
Madrid has shown unexpected strength with 20MW of new supply added in H1 2025, positioning for a record year that could exceed 2024's 23MW total. Berlin continues market growth with 4MW absorption following 2024's 33MW rebound after a dormant 2023.
Power constraints drive innovative solutions
Developers are pioneering on-site power generation to overcome grid limitations. CyrusOne partnered with EON for 61MW on-site generation in Frankfurt, while Ireland now mandates matching dispatchable power for all new connections.