European data centre supply surges as growth expands beyond core markets, finds CBRE research

Europe’s largest data centre markets are experiencing accelerated growth driven by AI and hyperscale demand, with supply across London, Frankfurt, Paris and Amsterdam rising by 18.9% year-on-year in Q1 2026, according to new research from CBRE.

Frankfurt recorded the strongest growth, with supply rising by 23% year-on-year, followed by London at 21%. Demand remains heavily concentrated in these two markets. Net absorption totalled 218MW in Frankfurt and 208MW in London, driven by hyperscalers and neocloud providers. Together, the two markets account for a significant share of Europe’s total capacity and demand, reinforcing their continued position as Europe’s leading data centre hubs.

Overall net absorption across Europe’s core markets increased by 90% year-on-year to more than 572MW. Despite this expansion, availability remains constrained. Frankfurt continues to report the lowest vacancy rate at 5%, while London’s vacancy increased slightly to 8.6% compared to 8% in Q1 2025, reflecting the delivery of new capacity that is being absorbed at pace.

As a result of the ongoing imbalance between supply and demand, rental rates continue to rise across core markets. For a 250-to-500-kW requirement, Frankfurt providers now charge up to €225 per kW/month, while maximum pricing in London reaches around £170 per kW/month.

Amsterdam recorded the lowest level of supply growth among the core markets, at just over 11% yearon- year, due to power limitations and restrictions on developments above 70MW. This has contributed to a shift in activity beyond established hubs in the city.

A similar trend is emerging in other core markets. In Frankfurt and Paris, development is extending into surrounding areas where access to land and power is more readily available, reflecting growing pressure on infrastructure within primary locations.

Emerging data centre markets are also gaining traction. Lisbon, while still relatively small with just over 50MW of supply, is attracting increasing interest from both occupiers and developers. Supported by competitive renewable energy costs and greater power availability, the market has the potential to scale significantly, with capacity projected to reach up to 500MW by 2030.