As noted in an analysis by Cushman & Wakefield Proprius, Ms. Ioanna Palivou states, "Athens is poised to become a key player in the data center and artificial intelligence (AI) landscape in Europe, attracting further interest from global giants like Google and other cloud service providers."
It is important to remember that just a few weeks ago, the American tech giant Microsoft committed to completing its investments in Spata and Paiania, while Digital Realty is set to launch its new data center in Heraklion, Crete, in about two months. In the same area, the Greek company Lancom is developing a data center, aiming for its completion within the first half of the year.
Among those expressing interest in investing in this sector is ADMIE, which has announced a collaboration with Serverfarm, resulting in the formation of the Gemini joint venture. Meanwhile, PPC (Public Power Corporation) is also involved in the Data In Scale consortium, along with EDGNEX Data Centers of DAMAC, with the goal of establishing a new data center.
Expansion of Capacity
2025 is set to be a strong year for the data center sector, not only in Greece but across the broader EMEA region. According to Cushman & Wakefield’s analysis, the data center capacity in 2024 is expected to close with an increase to 12 GW. This represents a 9% growth in operational capacity and a 16% increase in future developments (both under construction and planned) compared to the previous year. While established markets like Frankfurt, London, Amsterdam, Paris, and Dublin continue to dominate in terms of operational capacity and overall market size, operators are increasingly focusing on emerging markets such as Helsinki.
Andrew Fray, Head of Data Centers EMEA at Cushman & Wakefield, commented, "Most data center markets continue to face significant challenges such as limited land availability, energy constraints, and strict sustainability regulations, all of which impact costs, timelines, and contribute to substantial investment uncertainty for both operators and investors."
He continued, "Despite being seen as a potential threat by some, the rise of Deep Seek could offer solutions to some of the energy demands related to data centers. By reducing the energy required for AI operations, it could contribute to more sustainable and cost-effective data center infrastructures. While some development plans may need reassessment, the broader trend is that AI competition was inevitable and, for the most part, beneficial to the market. It’s noteworthy that Deep Seek has become a major topic so quickly, despite its lack of a proven track record and concerns about data security, as its presence undoubtedly adds value to the market and will drive further innovation."
Market Overview
• Powerhouse Markets (over 900 MW): London, Frankfurt, Dublin, Paris, Amsterdam, and Milan
• Established Markets (300-900 MW): Dubai, Oslo, Johannesburg, Cardiff-Newport, and Berlin
• Developing Markets (150-300 MW): Stockholm, Zurich, Warsaw, Tel Aviv, Copenhagen, Reykjavik, and Cape Town
• Emerging Markets (<150 MW): Athens, Vienna, Lagos, Barcelona, Riyadh, Brussels, Munich, Istanbul, Zaragoza, Marseille, and Lisbon
- Powerhouse Markets: London, Frankfurt, Dublin, Paris, Amsterdam, and Milan
These six markets collectively account for nearly half of the operational capacity (4.4 GW) in the EMEA region and more than 50% of the under-construction and planned developments (5.8 GW). Andrew Fray states, "Regardless of where demand originates, AI data processing takes place in data centers. The larger 'powerhouse' markets in the region represent nearly 6GW of future supply, fueling market growth across the region, with new construction activity set to double current capacities."
Sustainability efforts continue to accelerate, with users directly or indirectly adopting green hydrogen, waste heat recovery, and renewable energy mechanisms. Meanwhile, emerging markets and remote campuses outside established metropolitan areas are poised to reshape the data center landscape.
London is expected to become the first urban market in EMEA to reach 2GW in operational capacity within the next 3-5 years. It currently has 1.44GW of operational capacity, with 1.5GW of new developments set to be delivered (265MW under construction, 1,260MW planned). Around 53 users have developed 135 data centers.
While power restrictions remain a significant issue in London, the UK government has classified UK data centers as critical national infrastructure, revising planning policies to provide stability and growth opportunities for investors. Frankfurt follows closely with 1.3GW of projects in development.
The Frankfurt market is primarily composed of colocation providers, including NTT, Equinix, Digital Realty, and CyrusOne, with CloudHQ also making significant development plans in the region. According to the EU’s Energy Efficiency Directive, the Energy Efficiency Act (EnEfG) requires data centers over 300kW to recover and reuse waste heat, encouraging the integration of excess heat into local district heating networks, particularly those powered by renewable sources.
Equinix plans to supply heat to approximately 1,000 homes from its data centers by early 2025. Experts suggest that by the end of the decade, all heating needs in the city could be met by the excess heat from data centers.
However, in rural areas, many waste heat recovery projects have been delayed or canceled due to the challenge of securing a reliable customer base in sparsely populated regions.
Dublin ranks third with 812MW, but its growth is constrained by a lack of land, power, and substation upgrades. Paris has moved up one spot, overtaking Amsterdam, thanks to steady growth in operational capacity, with a 32% annual increase, and a rapidly expanding number of new developments totaling 1,040MW. France’s environmental regulations aim for carbon neutrality by 2050, making sustainability a key factor in the city's data center expansion, with many projects planned to run entirely on renewable energy.
Amsterdam, with just 444MW in future developments, suffers from the long-lasting effects of its 2019 moratorium, strict regulations, and political opposition. National restrictions on advanced data centers and local limits on new developments in Amsterdam have shifted demand to other European cities, particularly Paris. Milan continues to exert pressure on dominant markets with 820MW in the pipeline.
- Established Markets: Dubai, Oslo, Johannesburg, Cardiff-Newport, and Berlin
These markets account for around 13% of total operational capacity in the EMEA region, with 1,244MW in operation. They are on track to more than double in size if ongoing developments (2,180MW) are completed in the coming years. Many operators are expanding or exploring entry into these markets due to their strategic location and available infrastructure for data center operations.
For example, Berlin offers a significant alternative to Frankfurt. Over the past 12 months, the operational capacity of Berlin's data centers has remained stable. Although the volume under construction is low (8MW), the committed volume (213MW) has increased, driven by companies like Vantage Data Centers, Yondr, Data Castle, Prea, and NTT Global Data Centers, all of which are committed to new projects.
In August 2023, Google opened a new cloud region in Berlin-Brandenburg, providing a boost for further developments. Colocation providers also expanded, enabling faster access to cloud infrastructure. Helsinki, a new entrant in this category, saw significant growth, both in capacity coming online and increasing connectivity, reaching a total of 594MW by the end of 2024. Helsinki now boasts the third-largest under-construction capacity (210MW) in EMEA, with the broader Scandinavian region accounting for nearly a quarter of the under-construction capacity across the entire EMEA region.
Another newcomer is Cardiff-Newport, which Cushman & Wakefield describes as a high-growth area in the UK. Although it currently only has 87MW in operation, it has a large pipeline of 231MW. Microsoft and Vantage already have significant data centers there, and the new UK entity Latos has announced plans for a 90MW data center. In October, a large data center and renewable energy park with 1,000MW battery storage capacity was approved, making it one of the largest battery storage facilities globally.
Developing Markets: Tel Aviv, Copenhagen, Reykjavik, and Cape Town
These centers, spread across three continents, already account for 8.3% (785MW) of the operational capacity in the EMEA region by the end of 2024, up from 7.7% in the first half of 2024, with a consistent upward trend. Future projects in these seven markets total 815MW.Emerging Markets: Athens, Vienna, Lagos, Barcelona, Riyadh, Brussels, Munich, Istanbul, Zaragoza, Marseille, and Lisbon
These markets are in the early stages of development, but many data center operators find them attractive due to their business-friendly environment, growing consumer demand, available land, energy resources, fiber connectivity, and the creation of new cloud regions. Together, they represent less than 6.5% of total operational capacity (608MW) in the EMEA region.
