The global data center market is entering a new phase of “managed growth” in 2026. After years of accelerated expansion, demand for cloud, AI, and compute capacity remains strong. However, power availability, grid connections, regulation, permitting processes, and local acceptance are increasingly determining where new data center capacity can be developed. This is highlighted in the latest report, “Global Data Center Market Comparison 2026,” by Cushman & Wakefield.
While the Americas continue to dominate the global market—with 43.4 GW of operational capacity, 25.3 GW under construction, and 191.3 GW in the pipeline—the EMEA region is also expanding, albeit in a much more controlled manner. The study reports 11.4 GW of operational capacity in EMEA, 2.7 GW under construction, and 12.1 GW planned. This implies that capacity in EMEA is expected to grow just over twofold, compared to a sixfold increase in the Americas.
“The European data center market remains a key component of the global digital infrastructure, but is increasingly shaped by challenges related to power, land availability, and regulation,” says Martin Belik, Head of Valuation & Advisory Germany at Cushman & Wakefield: “Frankfurt, as Germany’s largest hub, is a prime example: demand remains high, available capacity is limited, and new developments are increasingly influenced by location factors such as energy supply, permitting feasibility, and sustainability requirements.”
Frankfurt: Established Core Market with High Demand and Limited Availability
Alongside London, Dublin, and Amsterdam, Frankfurt is one of Europe’s most important data center hubs, benefiting from its position as a leading connectivity, cloud, and enterprise location. However, the global market analysis also shows that Frankfurt no longer competes primarily through large-scale expansion opportunities, but rather through its established market strength, robust network infrastructure, and stable demand base.
Frankfurt ranks third worldwide among markets with particularly low short-term availability. Pre-leasing rates for planned data centers are also exceptionally high, underlining its status as a strategically important demand hotspot in Europe.
At the same time, the study shows that other EMEA locations—including Helsinki, Oslo, Abu Dhabi, Milan, Madrid, Stockholm, Zaragoza, Dubai, Zurich, and Paris—rank ahead of Frankfurt in the regional list of preferred primary markets.
Europe Between Demand Growth and Location Constraints
The study highlights a shifting competitive landscape within Europe. While traditional core markets such as Frankfurt, London, Amsterdam, Paris, and Dublin continue to experience strong demand, alternative locations are gaining importance due to more favorable conditions in terms of power availability, land, cost structures, and permitting processes.
In EMEA, cities such as Helsinki, Oslo, Milan, Madrid, Stockholm, and Zaragoza are identified as leading primary markets. These locations benefit from more favorable development conditions, while established hubs increasingly face constraints related to power supply, land scarcity, and regulatory requirements.
A key bottleneck remains energy supply. According to the study, average grid connection times for large-scale new demand are 4.4 years globally. In EMEA, the average waiting time is even higher at 5.2 years, compared to 2.7 years in APAC and 5.0 years in the Americas.
“Clean Energy” Replaces a Pure Renewables Perspective
Another notable trend is the broader view on energy sources. The study indicates a shift in focus from purely “renewable energy” to the broader concept of “clean energy.” This includes not only solar, wind, hydro, and geothermal power, but also nuclear energy and future clean technologies as part of long-term energy strategies.
This development is particularly relevant for European markets, where data center operators are increasingly seeking reliable, scalable, and regulation-compliant energy solutions. In high-demand but power-constrained markets such as Frankfurt, the interplay between energy availability, sustainability requirements, and permitting feasibility is becoming a decisive location factor.
Germany and Frankfurt Remain Strategically Important
Despite growing challenges, Germany remains a core market for data centers in Europe. Strong demand, high connectivity, and Frankfurt’s role as a central digital infrastructure hub continue to support its importance. At the same time, the analysis shows that future growth will become more selective, energy-driven, and dependent on permitting conditions.
“Frankfurt will remain a key European hub for users, cloud providers, and operators,” Martin Belik concludes. “However, future growth will be shaped less by demand alone and more by feasibility. Those who can secure power, land, permits, and public acceptance will have a clear competitive advantage in the European market.”
About the Study
The “Global Data Center Market Comparison 2026” by Cushman & Wakefield analyzes global data center markets based on market fundamentals, terrestrial factors, energy variables, and political and regulatory frameworks. It covers markets across the Americas, APAC, and EMEA regions.
