Data center markets are booming in these EMEA countries

Data center construction in Europe and the Middle East is forging ahead, with the region accounting for five of the ten fastest-scaling global data center markets.

According to new research from Savills, the US is – unsurprisingly – the biggest market in terms of capacity, at around 50GW of live IT power, and has grown by 19% since 2024.

China comes next in terms of existing capacity, with Japan, the UK, Germany, Ireland, and the Netherlands also boasting large and mature markets.

But while they show major absolute scale, they've experienced more modest recent growth thanks to increasing grid access constraints.

Some EMEA markets, meanwhile, are scaling at a rapid pace. The data center markets in Finland and Saudi Arabia have grown by 57% since 2024, for example.

Denmark (38%), France (28%), and Portugal (23%) are all recording significant growth.

Cities are getting in on the action

According to Savills, a host of European cities are capitalizing on the market boom and positioning themselves as go-to locations. Porto, Marseille and Malaga are offering comparatively low-cost power by European standards, Savills noted.

These cites also offer more permissive planning regimes and less competing demand than some of the region’s more established hubs.

Porto combines renewable power with strong connectivity, as well as more room to secure land and capacity.

This pattern extends across Europe, researchers said, with several AI projects being delivered further away from the major metros in locations where a faster route to significant power can be secured.

"For AI-driven data center growth, the Nordics, led by Finland, Denmark and Norway, offer one of the clearest delivery propositions globally, combining low-cost, clean power, cooler operating conditions and fewer physical constraints," said Rupert Duckworth, associate director of Savills' EMEA data center advisory.

"The region has increasingly become a focus for large-scale, AI-oriented development – with significant new campuses now progressing."

Asia markets are growing rapidly

According to Savills, it's Malaysia that's scaled at the highest rate over the last two years, recording growth rates of 132%. This is partly due to its proximity to data processing-hungry but land- and power-constrained Singapore.

Indonesia has grown by 66%, with India and Australia also having grown rapidly to hit a meaningful scale.

"The relative growth of countries such as Malaysia and Indonesia in just a couple of years has been extraordinary, with another tranche of countries not far behind," said Paul Tostevin, head of Savills World Research.

"However, these nations must now look to balance the issues which are sometimes constraining growth in the more mature markets: namely grid access, energy costs, land and water availability and environmental impact.”

Power constraints holding back growth

Power is the biggest factor holding back construction, Savills noted. In particular, grid access, where connection lead times can be far longer than build time.

As a result, developers are increasingly going where grid capacity is available, rather than simply following demand.

"Demand for data centres is not in doubt. But the harder question is where they can actually be built. Answering this will require close collaboration between operators, utilities, governments and local communities, particularly where AI workloads place new pressures on grids and resources," the researchers conclude.

"Climate risk compounds the challenge: higher temperatures, water stress and extreme weather will increasingly shape where capacity can be delivered and run reliably, and communities and governments will be asking whether development will exacerbate existing issues."

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