Demand to match supply to top European data center markets this year given strong hyperscaler appetite
The annual forecast is reflective of a strong third quarter for the colocation data center industry. Take-up soared to 215 megawatts in third quarter 2023, nearly quadruple that of the previous quarter (54 megawatts), largely due to pre-leased capacity that was delivered in Amsterdam and Frankfurt.
CBRE predicts fourth quarter 2023 take-up to exceed this, as a number of sizable data centers in Paris, Frankfurt and London are expected to open before the end of the year. As a result, new supply (283 megawatts) and take-up (265 megawatts) levels in the FLAPD markets are likely to reach record highs in the final quarter.
Kevin Restivo, CBRE’s head of data center research for Europe, said hyperscaler buying patterns are changing, but demand should remain strong. “Hyperscalers requirements are becoming more specific, and sales cycles are longer. However, the need for greater amounts of capacity to ensure future needs are met and keeping capacity away from competitors rem