CBRE EXPECTS THERE TO BE 480MW OF TAKE-UP ACROSS FLAPD MARKETS IN 2023 , WITH MORE THAN HALF ( 56 %) TO MATERIALISE IN FRANKFURT AND LONDON .
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Top European data centre markets on track for record year
Global real estate advisor , CBRE , has predicted the top European data centre markets that are expected to be responsible for the majority of demand this year .
t is expected that there
I will be a record amount of take-up in Frankfurt , London , Amsterdam , Paris and Dublin ( FLAPD ) data centre markets in 2023 , according to the latest research from global real estate advisor , CBRE .
CBRE expects there to be 480MW of take-up across FLAPD markets in 2023 , with more than half ( 56 %) to materialise in Frankfurt and London .
Hyperscalers are expected to be responsible for the majority of demand this year despite weaker economic conditions and slowing growth of their respective cloud operations .
As a result , a comparable level of supply will be delivered to accommodate this . CBRE expects operators to deliver 524MW of capacity in 2023 , with a flurry of notable megaprojects due for completion in London , Paris and Frankfurt in the second half of the year .
This follows a muted Q1 , with just 2.9MW of supply coming to market , the lowest amount of new supply delivered in any given quarter for over 11 years .
The lack of new supply coming to the market had a direct impact on demand in Q1 , with take-up dropping to 28MW , a fraction of total take-up from the previous quarter ( 202MW ). More than half of Q1 take-up was realised in London ( 17MW ) with a single hyperscaler deal accounting for the majority of this .
Kevin Restivo , Director , European Data Centres Research at CBRE , said : “ We expect momentum to gather over the year in the FLAPD markets as operators deliver facilities to meet growing levels of demand . As a result , we are on track for unprecedented levels of new supply this year , much of which we expect to be pre-let to single tenants , notably in the tech sector .” �
CBRE EXPECTS THERE TO BE 480MW OF TAKE-UP ACROSS FLAPD MARKETS IN 2023 , WITH MORE THAN HALF ( 56 %) TO MATERIALISE IN FRANKFURT AND LONDON .
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