Europe Data Center Market Poised for $148B Expansion by 2031, Driven by AI and Hyperscale Demand

Event summary

  • Europe's data center market is projected to grow from $59.84B to $148.82B by 2031, a 16.4% CAGR.
  • The UK leads with 27% of data center investments and over 1.8 GW of operational power capacity.
  • Liquid cooling technologies account for 30.38% of cooling technique investments.
  • Colocation data centers hold more than 68% of the power capacity share in Europe.
  • Construction investments are expected to reach $58.74B by 2031, with FLAP-D markets remaining primary investment destinations.

The big picture

Europe's data center market is undergoing a significant transformation driven by the rise of AI workloads, cloud investments, and hyperscale capacity demand. The region's established FLAP-D markets and emerging Nordic hubs are attracting substantial investments, with a focus on greenfield developments, modular deployments, and advanced cooling technologies. This expansion is critical for supporting next-generation facilities and meeting the growing demand for AI and high-performance computing infrastructure.

What we're watching

AI Infrastructure
How the shift toward liquid cooling and high-density racks will affect operational efficiency and costs.
Sustainability Trends
Whether Europe's Nordic region can maintain its lead as a preferred destination for AI-ready data centers due to favorable power economics.
Hyperscale Expansion
The pace at which major operators like Google and Equinix will continue to invest in Europe's data center market.