The European data centre market is facing a growing imbalance between demand and delivery, with access to power, planning, skills and AI readiness becoming key constraints in 2026.

That’s according to the latest research from BCS, which published an industry report dubbed Data Centre Truths 2026, leaning on insights from over 3,000 respondents across 41 countries. 

The report found that while demand continues to grow, with 93% of respondents expecting further expansion this year, the actual ability to deliver new capacity at a reasonable pace has waned. 

“Europe’s data centre market is not slowing down, but delivery is becoming far more uneven,” noted James Hart, CEO of BCS Consultancy. 

“For the first time, securing power and planning approval is no longer enough. In 2026, those are just entry tickets. Pressure around power, floorspace and rack density continues to shape how quickly AI demand can be converted into deployable capacity.”

Skills and AI readiness move centre stage

It’s not massively surprising to see that delivery capacity is now the primary bottleneck. Big tech firms have committed to spending $600 billion on their AI buildout, but that has to contend with existing skills shortages across both the data centre and construction industries. 

In key markets, such as London, there have already been warning signs that contractors are struggling to keep up with demand – that’s led to some setting up their own in-house MEP capabilities to support projects, but that problem is only likely to compound. 

That’s because the report argues that while demand over the last few years has grown massively, AI-related demand is still accelerating at a significant pace. Companies are clearly eager to capitalise on the growth of AI, but with only 20%% of facilities currently considered AI-ready today, there’s a growing gap between ambition and deployable capacity. 

Alongside skills and AI readiness, the research places continued emphasis on power, planning and supply chains – not as standalone hurdles, but as connected constraints that shape delivery outcomes. In some markets, the report suggests power access and grid queues are the dominant risk; in others, it says skills availability, regulatory friction or execution sequencing are proving more decisive.

For the UK market, we have almost a perfect storm. Grid connection queues remain lengthy, despite efforts by NESO to speed up the process, while it can still be a struggle to get through local planning committees. In fact, just last week, a major data centre in Edinburgh was rejected on grounds that its green claims were not sufficiently green. 

Sustainability shifts towards resilience

That rejection from Edinburgh City Council is not in isolation, however, with many other data centres facing the same fate. In fact, it’s those exact reasons that the report from BCS Consulting suggests sustainability priorities with the industry are actually evolving, with attention moving from minimising impact in isolation to building resilience into the wider system. 

According to 70% of respondents, they expect geopolitical events to accelerate the push for locally-generated renewable energy, and that energy security and community impact are increasingly influencing site selection. That will be key in the UK going forward, with the wider populace seemingly sceptical when it comes to the industry’s big boom.