Data centre capacity pricing across Europe’s FLAP-D markets is expected to rise by an average of 12% in 2026, according to new research from CBRE.
The cost of securing 20 MW or more of future capacity could reach as much as £145 per kW in London, and €145 per kW across Frankfurt, Amsterdam, Dublin and Paris. Capacity at this scale is typically taken by hyperscalers and neocloud providers, with competition intensifying as demand continues to outstrip available supply.
According to CBRE, some providers have already increased pricing for customers looking to secure significant volumes of capacity, reflecting both higher build costs and the growing imbalance between supply and demand across Europe’s largest data centre markets.
That shortage of available supply is becoming a key driver of pricing, particularly where multiple parties are competing to secure limited capacity with early go-live dates. Given the ongoing difficulties around power availability, planning and grid connections in many major European hubs, it is unsurprising that future capacity is becoming more expensive to lock in.
“There is a widening gap between the cost of capacity associated with traditional air-cooled data centres and facilities designed to support AI workloads. As higher-density data centres become a larger part of the European landscape, pricing is set to increase, assuming demand remains strong,” said Andrew Jay, Head of Data Centre Solutions, Europe.
AI adding another layer of pressure on pricing
The growing demand for AI-ready infrastructure is also changing the economics of data centre development. Higher-density facilities require more advanced cooling systems, higher-specification infrastructure and greater power availability than traditional data centres, all of which adds to construction costs.
“Larger, more technically complex data centres require advanced cooling systems and higher-specification infrastructure, which significantly increases build costs. As demand for these environments grows and availability tightens, providers are increasingly passing these costs on to customers,” concluded Kevin Restivo, Director, European Data Centre Research.
