For the first time ever, the vacancy rate for colocation data centres in Europe's leading markets of Frankfurt, London, Amsterdam, Paris, and Dublin (FLAPD) has dipped below 10%.
This comes as new research from CBRE reveals that demand for data centre space continues to outpace supply.
In Q2 2024, take-up surged to 44 MW, eclipsing new supply at 30 MW for the fourth consecutive quarter. As a result, the FLAPD vacancy rate has plummeted to 9.8% and is projected to fall further to 7.9% by year-end. This would mark the fifth straight year of declining vacancy rates in these key European markets.
Kevin Restivo, head of European Data Centre Research at CBRE, commented: ‘Data centre capacity is an increasingly precious commodity given the considerable demand for space and competition for it. Providers that can secure the necessary resource and build data centres are able to command higher prices for the space.’
Hyperscale companies are driving a surge in demand for colocation data centres as they race to deliver digital services and gain a competitive edge.
However, power shortages, land scarcity, and stringent regulations, particularly in key markets like Frankfurt and Amsterdam, are making data centre construction increasingly complex.
As a result, demand consistently outstrips supply across Europe's major metro areas. CBRE forecasts a supply gap this year, with 646 MW of new capacity expected to fall short of the anticipated 693 MW in demand across the 15 markets it tracks.
