Reflecting rapidly increasing data usage exacerbated by artificial intelligence (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. Occupiers are expanding their search for new markets on the back of rising AI data requirements.
A supply shortfall is forecasted to exacerbate over the next few years as tenants fill up existing and planned data centre space. Locations with low power costs and easily accessible renewable energy supply are set to attract data centre investment. Read on to discover which European locations may see rapid development opportunities, and risks to look out for in this emerging sector.
Forecasts are not guaranteed and may not be a reliable indicator of future results.
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