Europe's data centre landscape is experiencing a dramatic shift as artificial intelligence infrastructure providers snap up capacity at unprecedented rates, with signings reaching 414MW in the first nine months of 2025 compared to just 133MW in the same period last year.
The surge marks a pivotal moment for the sector as neoclouds, emerging AI-focused infrastructure providers, rush to secure large-scale facilities whilst traditional hyperscaler activity temporarily moderates. According to CBRE's latest research, the Nordics have emerged as the epicentre of this boom, accounting for 57% of all AI-focused colocation capacity signed this year.
The shift presents a compelling opportunity for investors and developers, particularly in integrating renewable energy. Data centre operators are now commanding premium rental rates for AI-ready facilities, with power costs and energy infrastructure becoming the primary differentiators in location decisions. Markets with abundant, low-cost renewable power, particularly in Scandinavia, are well-positioned to capture disproportionate investment flows as AI workloads demand up to three times the power density of traditional computing.
"Neoclouds have expanded their footprint in Europe this year by absorbing vacant space that was originally intended for hyperscalers. It is a sign that many data centre providers are growing more comfortable with the ambitions of neocloud providers and the covenants that come with it," said Andrew Jay, Head of Data Centre Solutions, Europe at CBRE.
The market dynamics reflect a calculated risk management approach by operators, who are implementing higher rental rates and stricter covenant structures to offset the substantial build costs associated with AI-ready infrastructure. These facilities require enhanced cooling systems, upgraded power distribution, and reinforced structural capacity to handle the intensive computational demands of AI workloads.
"Neocloud providers are taking AI-specific capacity at scale in Europe. We see tremendous growth of this segment, especially in the Nordics, where lower-cost renewable power is often available in greater abundance than in many other European markets," said Kevin Restivo, Director, European Data Centre Research at CBRE.
People mentioned:
- Andrew Jay, Head of Data Centre Solutions, Europe, CBRE
- Kevin Restivo, Director, European Data Centre Research, CBRE
Companies mentioned:
- CBRE - Global commercial real estate services and investment firm
Image: Generated with AI for representational purposes only
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