This quarter, the Knight Frank Data Centre report focuses on EMEA. Market analysis includes both established data centre hubs such as Frankfurt, London, Amsterdam, Paris, and Dublin; and growth markets including Madrid, Sweden, Berlin, Denmark, Milan and UAE to provide a comprehensive view of the region.

While cloud computing continues to drive demand in established markets, a more decentralised approach from hyperscalers has simultaneously underpinned growth in secondary locations across the region. The markets covered in this report recorded an increase of approximately 1020MW in aggregate supply over 2022, with Paris and London seeing 202MW and 185MW respectively. Microsoft, AWS and Google have all recently realised earnings for the end of 2022, with the principle theme being a deceleration in percentage growth rates as customers become more cautious and look to optimise their cloud spending in wake of the macroeconomic backdrop. It is important to note that this is not yet translating into a reduction of demand for colocation space or self-build development in EMEA.

London registered significant activity in 2022, with 98MW of capacity absorbed this quarter. This is largely due to public cloud securing multi-megawatt deals. West London has seen the majority of take-up for the market but we have seen hyperscale demand expand out eastwards. Ark, Vanatge, CloudHQ, Yondr and GTR all have significant capacity in the pipeline.

Paris and Frankfurt now both have over a gigawatt of total IT supply, with the latter nearing 1500MW. In Frankfurt international operators account for the majority of the power committed, with Stack Infrastructure announcing plans to develop an 80MW data campus in Liederbach. Paris continues to see power convert from committed to under construction, with CloudHQ beginning development at its Lisses campus. CyrusOne and KDDI Telehouse are both planning expansions at existing facilities.

In Southern Europe, Milan and Madrid continue to see growing interest from data centre investors and hyperscalers. In Madrid, Microsoft has purchased a number of sites, with the hyperscaler starting a new alliance with construction firm Ferrovial. In Milan, Equinix announced ML7x, with 3MW currently under construction.