Executive Summary

• Reflecting rapidly increasing data usage exacerbated by AI and a limited supply pipeline, a forecasted rising shortfall of data centers points to a favorable rental growth outlook across the major data center hubs of Frankfurt, London, Paris, Amsterdam and Dublin.
• Data center market returns are set to pick up to a forecasted 10-15% p.a. over the next few years, driven by sustained rental growth as tenants compete for space (Exhibit 1).
• Occupiers are expanding their search for new markets on the back of rising AI data requirements. Locations with low power costs and easily accessible renewable energy supply are set to emerge as attractive markets.