Power grid constraints in FLAPD (Frankfurt, London, Amsterdam, Paris and Dublin) are leading to investment slowdowns in these major data centres markets.
New investments are shifting to emerging markets like Southern Europe and the Nordics, driven by lower grid constraints and green energy resources.
Dublin and Amsterdam are among the hardest hit, with long wait times for grid connections delaying expansion plans.
Southern Europe (Milan, Madrid) and Poland are emerging as new data centre hotspots.
The shift aligns with Europe’s goals of decentralising digital infrastructure and reducing emissions.
Power Grid Constraints in FLAPD Hit Hard
Europe’s largest data centre markets—Frankfurt, London, Amsterdam, Paris, and Dublin (FLAPD)—are grappling with severe power grid constraints that are slowing the pace of digital infrastructure expansion and prompting investors to look elsewhere.
In the Netherlands, grid congestion has become a major bottleneck, with over 10,000 large users and 7,500 generation projects waiting for grid access. Amsterdam, a key European data centre hub, is facing waiting times of up to 10 years for new grid connections—putting plans for new data centre deployments on hold.
Dublin has also been hit hard. Ireland’s grid operator has effectively paused new data centre interconnection agreements in the Dublin region until 2028 due to overwhelming demand.
Investment Shift to Emerging Markets
These constraints have already sparked a shift in investment towards emerging European data centre hubs. According to recent analyses, cities like Milan, Madrid, and Warsaw are seeing rapid growth, with each projected to exceed 100MW of total supply by the end of 2025.
The Nordic countries—Sweden, Norway, and Finland—are also attracting fresh data centre investment. These countries offer a cool climate and abundant renewable energy, making them prime locations for new digital infrastructure projects.
Implications for Europe’s Digital Future
This shift to emerging markets not only helps alleviate pressure on the overburdened FLAPD hubs but also aligns with Europe’s broader digital transformation goals. Policymakers and investors are increasingly focused on decentralising the data centre sector to reduce regional bottlenecks and promote sustainability.
Moreover, these emerging markets often provide lower land and electricity costs, improved renewable energy sourcing, and fewer regulatory hurdles—creating fertile ground for the next generation of data centres to thrive.
Key Players in Europe’s Data Centre Landscape
A number of major operators and investors are driving this surge in European data centre expansion:
Equinix: A global colocation leader with data centres in key FLAPD hubs and recent expansions into Southern Europe and Eastern Europe.
Digital Realty: Operating through its Interxion brand in Europe, Digital Realty has a significant presence in FLAPD and is expanding in Madrid and Warsaw.
STACK Infrastructure: Active in both FLAPD and emerging markets like Milan and Warsaw, focusing on large-scale deployments for hyperscale customers.
Global Switch: Operating large campuses in London, Frankfurt, Amsterdam, and Madrid, Global Switch is investing heavily in energy efficiency and green initiatives.
Iron Mountain: Known for secure colocation and edge data centres, Iron Mountain has recently expanded its European footprint, including acquisitions in Amsterdam and London.
NTT Global Data Centers: With facilities across Europe—including Frankfurt, London, and Amsterdam—NTT is scaling up to support cloud and AI workloads.
NorthC Datacenters: A Dutch provider expanding across the Benelux and Germany, known for sustainable and modular facilities.
