Close Menu
Stratnews GlobalStratnews Global
    Facebook X (Twitter) Instagram
    Trending
    • RBI’s New Playbook: Trusting Banks, Empowering Business
    • China’s SiCarrier Subsidiary Launches EDA Tools to Cut Foreign Tech Reliance
    • India’s AI Startups Like LimeChat Transform Customer Service and IT Jobs
    • Germany Shuts Down 1,400 Illegal Trading Sites in Major Cyber Fraud Crackdown
    • Alibaba Cloud Opens Second Dubai Data Centre to Support AI Expansion
    • NASA’s Jet Propulsion Laboratory Cuts 550 Jobs to Streamline Operations
    • SpaceX Launches 11th Starship, Setting Stage for Moon and Mars Missions
    • Chinese Cyberattacks on Taiwan Surge 17% as Online Trolls Target Public Trust
    Stratnews GlobalStratnews Global
    Write for Us
    Friday, October 17
    • Space
    • Science
    • AI and Robotics
    • Industry News
    Stratnews GlobalStratnews Global
    Home » European Data Centres Expand, but AI Demand Outpaces Supply

    European Data Centres Expand, but AI Demand Outpaces Supply

    Kanika SharmaBy Kanika SharmaFebruary 6, 2025 Security & Politics No Comments2 Mins Read
    European Data Centres

    European Data Centres to Expand by 22% but Still Face AI Demand Challenges

    European data centres capacity is set to grow by 22% in 2025, yet demand for artificial intelligence (AI) infrastructure is outpacing supply. Industry experts warn that this could leave Europe lagging behind the U.S. and China in the AI race.

    Grid Constraints and Space Shortages Limit Growth

    Despite expansion efforts, Europe’s data center industry faces critical challenges, including electric grid congestion and a lack of suitable locations. The most affected regions are major hubs such as Frankfurt, London, Amsterdam, Paris, and Dublin, where power limitations are slowing development.

    As a result, secondary markets are seeing rapid growth. Milan, Warsaw, and Berlin are among the fastest-expanding cities for data centers in 2025, with companies also looking beyond urban areas to meet demand.

    Hyperscale Data Centres Drive Investment

    Tech giants like Google and Amazon are moving forward with hyperscale data centre projects, while European corporations are also increasing their AI-related infrastructure investments. CBRE, a consultancy firm, forecasts that around 9.1 gigawatts of capacity will come online this year, with hyperscalers accounting for over a third of that.

    The cost of building colocation space, where large companies rent sections of a data centre, is estimated at 12 million euros per megawatt. This suggests the European data center market will grow by more than 100 billion euros in 2025. However, this figure remains far behind U.S. investments, particularly the “Stargate” initiative, where Oracle, Microsoft, and OpenAI plan to spend $500 billion over four years.

    Europe Risks Losing AI Leadership

    China’s DeepSeek recently introduced more energy-efficient AI models, intensifying global competition. While this could improve AI efficiency, it does not address Europe’s immediate challenges of power shortages and infrastructure limitations.

    Industry leaders warn that if Europe does not accelerate data centre expansion, it risks becoming dependent on AI infrastructure from the U.S. and China. “Europe risks falling into technological dependency,” said Stijn Grove, managing director of the Dutch Data Center Association.

    with inputs from Reuters

    Author

    • Kanika Sharma
      Kanika Sharma

      View all posts
    Featured
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Reddit Telegram WhatsApp
    Kanika Sharma
    Kanika Sharma

      Keep Reading

      China’s SiCarrier Subsidiary Launches EDA Tools to Cut Foreign Tech Reliance

      India’s AI Startups Like LimeChat Transform Customer Service and IT Jobs

      Germany Shuts Down 1,400 Illegal Trading Sites in Major Cyber Fraud Crackdown

      Alibaba Cloud Opens Second Dubai Data Centre to Support AI Expansion

      NASA’s Jet Propulsion Laboratory Cuts 550 Jobs to Streamline Operations

      SpaceX Launches 11th Starship, Setting Stage for Moon and Mars Missions

      Add A Comment
      Leave A Reply Cancel Reply

      Latest Posts

      RBI’s New Playbook: Trusting Banks, Empowering Business

      October 16, 2025

      China’s SiCarrier Subsidiary Launches EDA Tools to Cut Foreign Tech Reliance

      October 15, 2025

      India’s AI Startups Like LimeChat Transform Customer Service and IT Jobs

      October 15, 2025

      Germany Shuts Down 1,400 Illegal Trading Sites in Major Cyber Fraud Crackdown

      October 14, 2025

      Alibaba Cloud Opens Second Dubai Data Centre to Support AI Expansion

      October 14, 2025

      NASA’s Jet Propulsion Laboratory Cuts 550 Jobs to Streamline Operations

      October 14, 2025

      SpaceX Launches 11th Starship, Setting Stage for Moon and Mars Missions

      October 14, 2025

      Chinese Cyberattacks on Taiwan Surge 17% as Online Trolls Target Public Trust

      October 14, 2025

      ESA Captures 3I/ATLAS, a Rare Interstellar Comet Passing Mars

      October 13, 2025

      TSMC Eyes Record Profit on AI Chip Demand Surge

      October 13, 2025

      Subscribe to News

      Get the latest sports news from NewsSite about world, sports and politics.

      • Astronomical Events
      • Space Missions
      • Industry News
      • Science
      StratNewsGlobal Tech
      Facebook X (Twitter) Instagram LinkedIn YouTube
      © 2025 StratNews Global, A unit of BharatShakti Communications LLP
      • About Us
      • Contributors
      • Copyright
      • Contact
      • Write for Us

      Type above and press Enter to search. Press Esc to cancel.

      ×