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Europe’s AI Data Centers Are Moving Toward Power, Not Cities

Frankfurt, London, Amsterdam, Paris and Dublin remain vital for enterprise demand, but the next hyperscale sites are being selected around power availability, land and grid access.

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Europe’s AI Data Centers Are Moving Toward Power, Not Cities

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Europe’s next huge AI data centers are being planned much farther from its major cities. JLL says hyperscale facilities expected online between 2026 and 2028 will sit, on average, 175 kilometers from a major hub. Projects delivered between 2022 and 2025 averaged just 46 kilometers. That is nearly four times farther, and it reflects a basic change in what developers are optimizing for: power, land, and access to the grid. The shift is also visible in the type of construction underway. Greenfield developments—new sites built from the ground up—make up 39 percent of the future pipeline, compared with only 8 percent of projects delivered in the earlier period. Inner-city locations are falling from 13 percent of delivered projects to just 5 percent of the pipeline. Most of the rest are planned for industrial areas or the edges of cities. The reason is scale. AI training campuses require enormous amounts of electricity, along with cooling water. In established markets, land is scarce, planning can be restrictive, and grid connections can take years. Powered land costs about 2.36 million euros per megawatt of IT capacity in core markets, versus 978,000 euros in secondary cities and 512,000 in tertiary areas. Frankfurt, London, Amsterdam, Paris, and Dublin still matter because that is where enterprise demand is concentrated. But DC Byte counts only one proposed gigawatt-plus European site near a major city: Paris. The others stretch from rural Spain to northern Sweden. The key constraint is whether those distant sites can actually secure power and grid connections in time.

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Europe’s planned hyperscale AI capacity is becoming a power-and-land allocation story rather than a city-proximity story. JLL finds projects expected online in 2026–2028 average 175 kilometers from major hubs, versus 46 kilometers for 2022–2025 deliveries. Greenfield sites now make up 39% of the future pipeline, while powered land costs fall from €2.36 million per megawatt in core markets to €512,000 in tertiary...

  1. 01

    JLL’s 2026–2028 hyperscale pipeline averages 175 kilometers from major hubs, nearly four times farther than recent deliveries.

  2. 02

    Greenfield developments comprise 39% of the future pipeline, versus 8% of projects delivered between 2022 and 2025.

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    Powered-land costs average €2.36 million per megawatt in core markets, compared with €978,000 in secondary cities.

Europe’s largest data-center markets remain critical for enterprise demand. But the evidence in the next hyperscale AI pipeline points elsewhere: developers are moving farther from major cities as they seek sites with enough power, land and faster grid connections.

JLL’s figures put scale on that shift. Hyperscale data centers due online between 2026 and 2028 average 175 kilometers from a major hub, versus 46 kilometers for projects delivered from 2022 through 2025. The coming cohort is therefore almost four times as distant on average.

The pipeline is moving beyond urban infill

The change is visible in the type of projects being planned. Greenfield developments account for 39% of Europe’s future data-center pipeline, compared with 8% of delivered projects. Inner-city sites are expected to represent 5% of the pipeline, down from 13%; most of the rest are planned for industrial or edge-of-city locations.

AI campuses turn the grid into the first constraint

JLL attributes the shift largely to AI training campuses, which need large amounts of electricity and cooling water. Established European markets face land shortages, planning restrictions and lengthy grid-connection waits. That changes site selection: the decisive question is increasingly where developers can secure sufficient power, rather than where demand already exists.

Powered-land cost per megawatt of IT load
€2.36 millionCore markets

JLL reported an average powered-land cost of €2.36 million per megawatt of IT load in Europe’s core markets.

€978,000Secondary cities

JLL reported average powered-land costs of €978,000 per megawatt in secondary cities.

€512,000Tertiary areas

JLL reported average powered-land costs of €512,000 per megawatt in tertiary areas.

The core markets carry their own price differences. JLL puts Amsterdam at roughly €2.7 million per megawatt, followed by London at €2.6 million and Frankfurt at €2.5 million. Cheaper powered land can make locations outside those hubs more attractive when a project needs a large electricity allocation.

The city hubs retain a different role

This is not a retreat from Frankfurt, London, Amsterdam, Paris or Dublin. JLL says those markets remain critical because enterprise demand continues there, even as hyperscale AI infrastructure requires a different scale of power and land. DC Byte’s early-stage data supports the split: among nine proposed gigawatt-plus European data centers, only one is planned near a major city, Paris; the others run from rural Spain to northern Sweden.

The new geography is still a pipeline, not completed capacity. But the direction is clear: Europe’s established hubs continue to serve enterprise customers while planned large AI sites increasingly follow available power and buildable land.

Sources

  1. calcalistech.comEurope’s AI data centers are moving far from the cities | CTech