The latest EMEA Data Centres Report by global property consultancy, Knight Frank, highlights the burgeoning capital needs of the region's data centre sector. More than £422 billion is required to finance the development pipeline, significantly including the £122 billion earmarked in the first half of 2025.
With EMEA's operational data centre stock now valued at £226 billion, this figure is projected to increase by 11.4% in 2025. As of the mid-year point in 2025, the region's market has accumulated a massive 50GW supply, a staggering 27.8% rise from the end of 2024. Live IT capacity hit 11.3GW, supplemented by 649.6MW worth of fresh projects.
Among the most prominent hubs, Paris leads with the fastest growth rate, needing £32.9 billion in capital to meet the 22.3% supply expansion forecast. The city has seen a 75.1% supply surge reaching 3.4GW, with live IT capacity now at 611.2MW. The rapid growth is driven partly by AI demands and partnerships with major tech firms.
In contrast, Frankfurt excels as the region's leasing activity leader, requiring £30.4 billion while marking a market valuation of £19.4 billion. An impressive take-up rate of 207MW was recorded over the previous year, bolstered by public cloud developments accounting for 93% of new leases.
Maintaining its position as the largest market, London demands over £44 billion in development capital, showcasing a valuation of £32 billion. Its capacity has expanded by 15.3%, reaching a significant 5.1GW.
Outside the leading trio, Milan ensures its place as the fastest-expanding market with expectations of a 47.9% growth rate, while Dublin remains one of the region's highest valued at £25.7 billion despite a modest £14.8 billion capital requirement. In a notable southern turn, Johannesburg forecasts a 34.3% supply growth.
Rising demand trails the sector's growth, with an EMEA-wide colocation vacancy rate at 9.5%. Stringencies in availability highlight evident constraints, with lower vacancy in larger scale capacities.
Meanwhile, soaring pre-leasing rates exacerbate pressure with 55.2% of ongoing constructions already pre-let and 22.1% of committed capacities reserved. Cities like Dublin, Milan, and London exemplify these trends, featuring striking pre-leasing figures of 94.8%, 92.6%, and 87.8%.
Stephen Beard of Knight Frank succinctly appraises the situation: “The story of 2025 so far is one of scale colliding with scarcity. We are seeing record levels of supply delivered and planned across EMEA, yet demand from AI and cloud is growing even faster.”
The report casts light on a market defined by rapid capital inflow, vigorous expansion, and relentless scarcity. With AI and cloud adoption gathering pace, the EMEA data centre sector remains poised at the vanguard of global technology development.
