Transformers at Google’s Dublin data center in Ireland. Photo: Google

Three quarters of data centre operators consider access to power as their biggest challenge in the next three years. These are findings from a new report from the European Data Centre Association (EUDCA) entitled “State of European Data Centres 2025.”

“To remain competitive globally and to support the continuing wave of technological development and digital transformation, the data centre industry must ensure continued focus on efficiency and sustainability while driving innovation,” said Michael Winterson, Secretary General, EUDCA.

Backbone of Economic Growth

Europe's data centre industry is increasingly recognised as the backbone of economic growth and digital sovereignty. Data centres alone accounted for €30 billion of EU GDP in 2023 and are projected to grow to €83.8 billion by 2030, alongside the creation of thousands of direct and indirect jobs.

Energy Use and Sustainability

To meet sustainability challenges, three quarters already employ environmental or energy management systems, half use residual heat coupling, and almost half (47%) employ IT equipment recycling practices. Sustainability is a guiding principle for data centres in Europe, and widespread support and adoption of voluntary measures such as the Climate Neutral Data Centre Pact (CNDCP) demonstrate not just commitment but the will to go beyond compliance.

Markets and Growth

The market is expanding rapidly, with demand outstripping supply and attracting billions of euros in investments. Major centres of activity include Frankfurt, London, Amsterdam, Paris, and Dublin (FLAP-D), with intense activity in emerging hubs in the Nordics and Southern Europe.

The report finds the industry faces challenges related to power availability, sustainability, and regulatory compliance, as new reporting obligations have recently come into effect. However, these challenges also present opportunities for innovation in energy efficiency, flexibility, and heat reuse.

A management summary of the State of European Data Centres 2025 report is available to download from the EUDCA website, and the full report will be published later.