Close Menu
Stratnews GlobalStratnews Global
    Facebook X (Twitter) Instagram
    Trending
    • Tesla Faces Slump in Sweden and Denmark While Norway Sales Surge
    • Xiaomi YU7 SUV Faces Over a Year Wait, Stirring Customer Frustration
    • Trump Targets Elon Musk Over Subsidies Amid Escalating Political Rift
    • Tianwen-2 Captures Stunning Images of Earth and Moon from Deep Space
    • Steven Spielberg Opposes AI Making Creative Decisions in Filmmaking
    • Meta Hires More OpenAI Researchers to Boost AI Research
    • Germany to Establish Joint Cyber Research Centre with Israel for Enhanced Security
    • African Scientists Extract Two-Million-Year-Old Proteins, Revealing Human Origins
    Stratnews GlobalStratnews Global
    Write for Us
    Wednesday, July 2
    • 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

      Tesla Faces Slump in Sweden and Denmark While Norway Sales Surge

      Xiaomi YU7 SUV Faces Over a Year Wait, Stirring Customer Frustration

      Trump Targets Elon Musk Over Subsidies Amid Escalating Political Rift

      Tianwen-2 Captures Stunning Images of Earth and Moon from Deep Space

      Steven Spielberg Opposes AI Making Creative Decisions in Filmmaking

      Meta Hires More OpenAI Researchers to Boost AI Research

      Add A Comment
      Leave A Reply Cancel Reply

      Latest Posts

      Tesla Faces Slump in Sweden and Denmark While Norway Sales Surge

      July 1, 2025

      Xiaomi YU7 SUV Faces Over a Year Wait, Stirring Customer Frustration

      July 1, 2025

      Trump Targets Elon Musk Over Subsidies Amid Escalating Political Rift

      July 1, 2025

      Tianwen-2 Captures Stunning Images of Earth and Moon from Deep Space

      July 1, 2025

      Steven Spielberg Opposes AI Making Creative Decisions in Filmmaking

      June 30, 2025

      Meta Hires More OpenAI Researchers to Boost AI Research

      June 30, 2025

      Germany to Establish Joint Cyber Research Centre with Israel for Enhanced Security

      June 30, 2025

      African Scientists Extract Two-Million-Year-Old Proteins, Revealing Human Origins

      June 30, 2025

      Vera Rubin Observatory in Chile Shares First Images and Tracks New Asteroids

      June 30, 2025

      Blue Origin Launches Six Tourists to Edge of Space in Successful Mission

      June 30, 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.