The EMEA region’s operational data centre stock is currently valued at £226 billion and is expected to increase by 11.4% in 2025. By mid-2025, the market has accumulated a substantial 50GW supply, a significant 27.8% rise from the previous year. Live IT capacity has reached 11.3GW, with additional projects worth 649.6MW in the pipeline.
Paris leads the way in growth, requiring £32.9 billion in capital to meet a forecasted 22.3% supply expansion. The city has experienced a 75.1% surge in supply, reaching 3.4GW, with live IT capacity standing at 611.2MW. This growth is fueled by increasing AI demands and collaborations with major tech companies.
On the other hand, Frankfurt stands out as the leasing activity leader, with a need for £30.4 billion in capital and a market valuation of £19.4 billion. The city recorded an impressive take-up rate of 207MW over the past year, driven by public cloud developments accounting for 93% of new leases.
London remains the largest market, requiring over £44 billion in development capital and boasting a valuation of £32 billion. The city’s capacity has expanded by 15.3%, reaching 5.1GW.
Milan is positioned as the fastest-growing market, with a projected growth rate of 47.9%, while Dublin maintains its status as one of the region’s highest-valued markets at £25.7 billion, with a modest capital requirement of £14.8 billion. Johannesburg anticipates a 34.3% growth in supply.
The sector’s growth is accompanied by rising demand, with an EMEA-wide colocation vacancy rate at 9.5%. Challenges in availability are evident, particularly in larger scale capacities with lower vacancy rates.
Pre-leasing rates are on the rise, with 55.2% of ongoing constructions already pre-let and 22.1% of committed capacities reserved. Cities like Dublin, Milan, and London showcase high pre-leasing figures of 94.8%, 92.6%, and 87.8%, respectively.
Stephen Beard of Knight Frank summarizes the current state of the market: “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 sheds light on a market characterized by significant capital influx, robust expansion, and persistent scarcity. With the rapid adoption of AI and cloud technologies, the EMEA data centre sector remains at the forefront of global technological advancements.
