According to CBRE’s Europe Data Centres Figures report, the final quarter of 2022 saw a strong finish for the colocation data center industry in Europe’s five largest markets, with demand for services exceeding supply. The report shows that half of the annual take-up was recorded in Q4, as take-up reached 202MW while supply was at 184MW. This represented a supply-demand imbalance that was present throughout 2022.
Despite this, the report projects that the industry will see a different trend in 2023, with supply projected to exceed demand in the FLAPD markets, with 572MW of supply projected and 440MW of demand. The report notes that despite the adverse circumstances, new schemes are likely to be delivered this year as projects have funding in place and power is secured. CBRE also expects demand for capacity to remain strong despite cutbacks announced by many of the world’s largest technology companies, which are also large customers of Europe’s colocation data center operators. The report forecasts a continued healthy appetite for capacity from hyperscalers in the industry.
However, the medium to long-term outlook for providers is less certain due to high borrowing costs, rising inflation, and power shortages across Europe, which are making the delivery of projects more difficult.
If you are interested, you can explore the full report for further details on the movements in the industry across the five major markets in Europe and download the report via the link below.