10 Feb
The European Data Centre Association (EUDCA) recently published the State of European Data Centres 2026 report, showing that Europe is investing heavily in its digital future: between 2026 and 2031, data centers are expected to attract €176 billion. While the FLAP-D region dominates the scene with over 6,600 MW of IT power in 2026, Central and Eastern Europe (CEE) is preparing to catch up, totaling 883 MW. Romania is mentioned three times in the report, ranking among the fastest-growing colocation markets in the region, confirming that the local digital infrastructure is entering a phase of expansion.
EUDCA 2026 Highlights Romania and CEE Growth
In Central and Eastern Europe (CEE), Switzerland currently holds the largest IT capacity in the colocation sector (302 MW in 2026, 464 MW in 2031), but Poland could surpass it, with estimated growth from 197 MW in 2024 to 511 MW in 2031 (CAGR 15%), according to EUDCA. Poland maintains an annual growth of 15% in the hyperscale sector as well.
Alongside Poland, Romania is among the markets with the highest annual growth (14%), with IT capacity projected to increase from 27 MW in 2025 to 66 MW in 2031. Both countries are only surpassed by Croatia (30% annual growth) in the region.
EUDCA notes that although Southern Europe records the fastest growth, with Spain, Italy, and Portugal benefiting from new (transatlantic and Mediterranean) cables, cloud expansion, and renewable energy, Central and Eastern Europe shows a more varied growth pattern, with Poland and Romania leading the increase while other markets develop more slowly.
Rapid Expansion and Record Investments
According to the report, the traditional colocation market is stabilizing, while large, scalable data centers are attracting huge investments. The FLAP-D region remains Europe’s largest data center cluster, but its growth is slowing due to energy shortages, lack of land, and difficulties in obtaining permits. Development is expanding toward Northern Europe, Southern Europe, and Tier-2 cities (medium and small).
Cities such as Madrid, Milan, Warsaw, Zurich, and Brussels are becoming international hubs. However, according to the EUDCA report, limited energy access is blocking many investments, and Europe risks being unable to triple its data center capacity by 2035 as planned.
Colocation has become the engine of Europe’s digital infrastructure, with IT capacity growth projected to exceed 23.8 GW by 2031. The 27 EU member states will contribute 17.8 GW, with most of the new capacity being scale colocation.
State of European Data Centres 2026
Key figures for 2026–2031 in Europe:
• €5–6 billion – estimated annual investments in the traditional colocation sector (retail/wholesale).
• €25–26 billion – estimated annual investments in large AI-dedicated data centers (“scale colocation”/AI hubs).
• 27% – projected annual growth of colocation data centers.
Major Socioeconomic Impact
Data centers are a pillar of the European economy: they attract billions of euros in investment and are expected to create over 300,000 new jobs. By 2031, the data center industry could support approximately 778,000 full-time employees across Europe. However, challenges remain – according to EUDCA market research, in 2025 the main obstacle for most operators in recruiting staff for data centers is the lack of specialized study programs.
The same report also notes that last year, the colocation sector contributed €53 billion to the EU GDP, and by 2031, the data center industry is expected to reach a total contribution of €137.5 billion, growing at 16.3% annually.
• At the community level, the data center sector contributes through infrastructure modernization and public-private partnerships. Increasingly, operators support green projects, such as reusing heat for urban heating networks or programs that help stabilize the electrical grid. In addition, they invest in renewable energy through long-term contracts (PPAs).
• Data centers also support digital inclusion, providing local connectivity and access to cloud services for SMEs. Examples include the 250 MW Pelagos campus in Gibraltar, which features a public leisure area, and the Microsoft community fund in Dublin (Clondalkin), which provides €100,000 annually for local digital education projects.
Sustainability for Greener Data Centers
In 2024, data centers in the European Union (colocation, hyperscale, and enterprise) consumed approximately 57.9 TWh, representing 2.1% of the EU’s total electricity consumption (the colocation sector accounts for 48% of this, or 27.6 TWh). The majority (over 90%) comes from renewable sources.
Operators primarily use Guarantees of Origin (GoOs) certificates, but long-term Power Purchase Agreements (PPAs) are gaining ground, covering 34% of total consumption. Increasingly, “high-impact GoOs” are being used, which support the construction of new solar and wind parks, align consumption with production, and integrate with the local grid, directly contributing to the development of renewable infrastructure in Europe.
Additionally, water usage is now widely monitored and measured, with most operators implementing conservation measures (e.g., optimizing cooling system controls, using recycled/non-potable water).
Key figures summarizing resource efficiency in European data centers:
• Colocation data centers have an average PUE of 1.36, hyperscale facilities are more efficient, while small enterprise facilities remain less efficient. The overall European average is 1.40.
• PUE values vary across Europe: Nordic and Baltic countries reach an average of 1.19, Northwest Europe – 1.45, and Southern Europe and Central & Eastern Europe record 1.57 and 1.54, respectively, influenced by climate, design, and infrastructure age.
• Average WUE (Water Usage Effectiveness) in colocation data centers: ~0.31 L/kWh
• 62% of operators use water-based cooling, though not necessarily at all sites.
• Germany introduced, through its national version of the Energy Efficiency Act, the first European requirement for heat reuse in new data centers.
Steady Pace of Investments in Hyperscale Data Centers
In Europe, annual investments in data centers are expected to remain around €7 billion. Announcements from hyperscalers seem to exceed this figure because they also include IT, and other related investments, with some expenditures occurring after 2031. Neocloud operators are gaining ground alongside established hyperscalers, differentiating themselves through greater architectural flexibility, higher density, and faster deployment times.
Investments in hyperscale campuses remain strong, with standard projects of 100–500 MW IT, while neocloud operators accelerate capacity delivery using pre-designed, liquid-cooling–ready modules.
Investments in hyperscale data center construction and installation (2024–2031) are projected as follows:
• 2025: Europe: €5.4 billion | EU-27: €4.1 billion
• 2026: Europe: €7.0 billion | EU-27: €5.6 billion
• 2027: Europe: €7.7 billion | EU-27: €6.2 billion
Despite regulatory, geopolitical, and cybersecurity challenges, Europe’s data center industry is accelerating, with growth showing no signs of slowing. Explore the full State of European Data Centres 2026 report for the complete insights.
