It is estimated that 937MW of new colocation supply will reach Europe’s data center market in 2025, according to a report from CBRE.

It is an expected increase of 282MW on the 655MW of total colocation capacity delivered in 2024. Last year, 51 percent of capacity was to primary markets, with Frankfurt seeing the most supply delivered (141MW), followed by Paris (107MW).

Yondr, Equinix, and Global Switch all launched facilities in Frankfurt last year.

Around 57 percent of new colo capacity this year is expected to be delivered in the FLAPD markets.

FLAPD markets have seen vacancy rates reaching an all-time low of eight percent, with European vacancy rates falling to 10 percent. By the end of 2025, vacancy rates in Europe are expected to close at around 8.5 percent.

CBRE warned at the beginning of 2024 that data center demand in Europe would outstrip supply. All four quarters last year saw demand outstrip new supply. In Q4 last year, 341MW of colocation space was taken up, with 297MW of new supply delivered.

Constraints on power and land will push growth in secondary markets. The report said a greater proportion of supply than ever before will be delivered to Europe’s secondary markets, adding that five of the ten secondary markets in Europe will see double-digit supply growth.

Seven markets, including Madrid and Milan, will have a supply of more than 100MW by the end of this year. In 2022, just four secondary markets had a supply of more than 100MW.

In a report last year, CBRE said five secondary European markets would have more than 100MW supply and that eight would see double-digit growth.

“The data center construction boom will continue unabated. Available power and appropriate land, government incentives, and hyperscaler ambitions are key factors that are driving the rapid growth of markets such as Milan, as well as the continued expansion of leading markets like London and Frankfurt,” said Kevin Restivo, head of European data center research at CBRE.