Europe is experiencing its largest data center expansion cycle in history, but artificial intelligence is changing one of the rules that have defined the sector for decades. Growth is no longer solely dependent on proximity to London, Frankfurt, or Paris. Now, the priority is to find enough electrical capacity to power increasingly larger facilities.
This is one of the main conclusions of the EMEA Mid-Year Data Centre Report 2026, prepared by JLL, which depicts a European market with record demand, limited availability, and a new generation of AI campuses located away from major urban centers.
The key points of the European data center market in 30 seconds
- The FLAP-D markets (Frankfurt, London, Amsterdam, Paris, and Dublin) reach 3.8 GW of operational capacity and could add another 453 MW before the end of 2026.
- Artificial intelligence is shifting new projects toward locations with greater electrical availability.
- Hyperscale campuses are moving from being situated 46 km from major cities to an expected average of 175 km.
- Greenfield land developments increase from 8% to 39% of the European pipeline.
- Demand continues to outpace supply, and the vacancy rate remains near historic lows.
Although the five main European markets still hold most of the installed capacity, the report makes it clear that the next growth cycle won’t be about expanding the same tech hubs but creating new ones around them.
The bottleneck is no longer clients, but energy
For years, the location of a data center primarily depended on proximity to major metropolitan areas to reduce latency and facilitate connectivity.
The rise of artificial intelligence has changed that logic.
Training models require hundreds of megawatts at a single site, while latency becomes less critical compared to land and power availability.
JLL summarizes this shift with a simple idea: data centers are starting to be built where electrical power is available, not where demand is concentrated.
Comparison: how the European market is changing
| Indicator | Previous Situation | Trend 2026-2028 |
|---|---|---|
| FLAP-D Capacity | 1.8 GW (2019) | 3.8 GW in H1 2026 |
| New greenfield developments | 8% | 39% of pipeline |
| Average distance of hyperscale campuses from major hubs | 46 km | 175 km |
| Average colocation distance | 52 km | 136 km |
| FLAP-D Vacancy Rate | 16.9% (2021) | 6.4% |
| Projected FLAP-D deliveries | 170 MW (2020) | 453 MW (2026) |
Source: JLL EMEA Mid-Year Data Centre Report 2026.
Paris leads growth while Iberia gains prominence
Among the major European markets, Paris experienced the largest capacity addition during the first half with 72.5 MW, already surpassing the full-year forecast. London added 49 MW and Frankfurt 45 MW, while Amsterdam and Dublin saw more moderate growth.
But perhaps the most interesting data point is another.
The report indicates that capital is beginning to flow toward secondary markets, explicitly citing Iberia, Milan, and the Nordic countries as some regions that will host much of the hyperscale growth in the coming years.
In the case of the Iberian Peninsula, JLL highlights projects like Microsoft’s expansion in Sines (Portugal) or announced investments in Aragón as examples of this new trend.
Demand continues to far outstrip supply
Despite the rapid pace of construction, the European market still shows limited available capacity.
The average vacancy rate in the FLAP-D markets is around 6.4%, well below the 16.9% recorded in 2021. Frankfurt has an even lower level, at 3.1%, prompting many companies to reserve capacity years in advance via pre-lease agreements.
This situation also explains the rise in land prices prepared for data centers. According to JLL, the cost per MW in main markets has increased by 82% since 2021, reaching approximately 2.26 million euros per MW, while secondary locations still offer a significant cost advantage.
AI is also changing the typology of data centers
The report predicts the market will tend to split into two main categories.
On one side will be colocation data centers aimed at enterprises, which need to stay close to major cities to reduce latency.
On the other will be campuses dedicated almost exclusively to training AI models, with capacities exceeding 300 MW, located in remote areas with abundant energy availability but far from urban centers.
For JLL, both models will coexist in the coming years, although the second category will account for much of the forecasted growth in Europe.
Frequently Asked Questions
What does FLAP-D stand for?
It is the acronym used for the five main European data center markets: Frankfurt, London, Amsterdam, Paris, and Dublin.
Why is AI changing the location of data centers?
Because AI models require enormous amounts of electricity and large plots of land, factors that are more decisive than proximity to users for certain workloads.
Which European regions will gain prominence?
According to JLL, Iberia, Milan, and Nordic countries are attracting increasing hyperscale investments due to greater land availability and electrical capacity.
Is the European market still growing?
Yes. The FLAP-D markets already total 3.8 GW of operational capacity, and the report forecasts another record year of new additions.
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