Powerhouse Markets: The Titans of EMEA

Powerhouse markets represent the largest data centre hubs in the EMEA region, each surpassing 900MW in total data centre capacity (existing + under construction + pipeline). The six Powerhouse cities—London, Frankfurt, Dublin, Paris, Amsterdam, and Milan—collectively account for nearly 50% of the region’s operational data centre capacity (4.4GW) and more than 50% of the pipeline (5.8GW).

• London (1st place): Expected to be the first market in EMEA to reach 2GW within the next 3–5 years, with a 1.5GW pipeline in development.
• Frankfurt (2nd place): Maintains a strong position with 1.3GW of upcoming capacity.
• Dublin (3rd place): Although boasting 812MW in pipeline, growth is constrained by land shortages, power availability, and substation upgrades.
• Paris (4th place): Rising in rank with an expanding 1,040MW pipeline.
• Amsterdam (5th place): Impacted by strict regulations and the 2019 moratorium, it now has only 444MW in pipeline, leading to a drop in ranking.
• Milan (6th place): Emerging as a competitive hub with an 820MW pipeline, putting pressure on traditional FLAPD markets (Frankfurt, London, Amsterdam, Paris, Dublin).

These markets remain at the core of Europe’s digital infrastructure, attracting hyperscale cloud providers, enterprises, and colocation providers due to their strategic locations and advanced infrastructure.

Established Markets: The Rising Giants

Established markets have total capacities between 300MW and 900MW, signifying significant growth potential. Key markets in this category include Helsinki, Madrid, Abu Dhabi, Dubai, Oslo, Johannesburg, Cardiff-Newport, and Berlin, together accounting for 13% of the total operational capacity in EMEA.

• Helsinki: Now a major hub, with 358MW pipeline and 210MW under construction, making it the 3rd fastest-growing market in EMEA.
• Cardiff-Newport: A new UK entrant, with only 87MW operational but a promising 231MW pipeline, driven by Microsoft and Vantage.
• Berlin: Emerging as a strategic alternative to Frankfurt due to its strong infrastructure and lower regulatory hurdles.

These locations are becoming attractive due to power availability, strategic location, and cloud region expansions, making them viable alternatives to Powerhouse markets.

Developing Markets: On the Cusp of Expansion

Markets with total capacities between 150MW and 300MW fall under the Developing category. Cities such as Stockholm, Zurich, Warsaw, Tel Aviv, Copenhagen, Reykjavik, and Cape Town make up 8.3% of the operational data centre capacity in EMEA.

• Developing markets have a combined 785MW of operational capacity, with an 815MW pipeline signaling strong future growth.
• Stockholm, Zurich, and Warsaw are poised for rapid expansion as cloud providers increase their regional investments.
• Cape Town and Tel Aviv are gaining attention due to their strategic positioning in global digital infrastructure networks.

These markets serve as regional connectivity hubs, benefiting from growing enterprise cloud adoption and improved fiber infrastructure.

Emerging Markets: The Future Growth Frontiers

Emerging markets, characterized by less than 150MW of total capacity, are in the early stages of data centre development. Notable cities include Vienna, Lagos, Barcelona, Riyadh, Brussels, Munich, Istanbul, Zaragoza, Marseille, Athens, and Lisbon.

• Combined, they account for less than 6.5% of total operational capacity (608MW).
• Factors driving interest include business-friendly regulations, increasing cloud adoption, availability of land and power, and new cloud region deployments.
• Some of these markets could also be classified as "Niche" hubs, catering to specialized industry needs.

As digital services expand and global enterprises seek cost-effective and sustainable data centre solutions, these markets are positioned to rapidly scale in the coming years.

Virginia: The Benchmark for Global Data Centres

For context, Virginia (U.S.) remains the world’s largest data centre market, dwarfing all EMEA markets combined.

• Total capacity: 23GW (existing + under construction + pipeline).
• Operational capacity: 5,556MW (387% larger than London).
• Vacancy rate: 1.6% – highlighting continued demand despite its massive scale.

Virginia serves as a blueprint for EMEA’s Powerhouse markets, showing that sustained growth and high occupancy can coexist with strategic planning and infrastructure expansion.

Key Takeaways: The Evolving EMEA Data Centre Market

1. EMEA is experiencing rapid data centre growth, driven by cloud computing, AI, and digital transformation.
2. Powerhouse markets like London, Frankfurt, and Paris lead the charge, but new contenders like Milan and Helsinki are gaining ground.
3. Established and Developing markets offer compelling expansion opportunities, particularly for enterprises seeking lower costs and regulatory advantages.
4. Emerging markets present untapped potential, with increasing cloud investments and infrastructure improvements.
5. Sustainability is becoming a key differentiator, with operators prioritizing eco-friendly solutions like advanced cooling technologies and renewable energy integration.

With demand for digital infrastructure skyrocketing, EMEA’s data centre landscape is set for continued expansion and diversification. The next decade will see more regions emerge as key hyperscale and enterprise data centre destinations, shaping the future of global connectivity.

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