Commercial Real Estate: Property Developments, Trends & Infrastructure

Signings for European AI DC capacity treble in 2025

Demand for data centre capacity dedicated to artificial intelligence (AI) has surged across Europe this year, as emerging AI infrastructure providers - often referred to as neoclouds - accelerate their expansion efforts amid slowing hyperscaler activity. According to new research from commercial real estate and investment firm CBRE, signings for AI-focused colocation capacity reached 414MW in the first nine months of 2025, up from 133MW compared to the same period in 2024. More than half of this capacity (57%) was signed in the Nordics. The increase reflects a market shift as hyperscaler demand has moderated temporarily and neocloud providers are securing large-scale capacity to meet the growing requirements of AI-driven applications. Neoclouds taking the lead Data centre operators are implementing measures to manage the additional risk associated with leasing to neocloud firms, including higher rental rates to offset build costs and ensure returns on AI-ready facilities. Andrew Jay, Head of Data Centre Solutions, Europe at CBRE, notes, “Neoclouds have expanded their footprint in Europe this year by absorbing vacant space that was originally intended for hyperscalers. "It is a sign that many data centre providers are growing more comfortable with the ambitions of neocloud providers and the covenants that come with it.” Kevin Restivo, Director, European Data Centre Research at CBRE, adds, “Neocloud providers are taking AI-specific capacity at scale in Europe. "We see tremendous growth of this segment especially in the Nordics, where lower-cost renewable power is often available in greater abundance than in many other European markets.” For more from CBRE, click here.

Report: Scotland emerging as key DC growth market

According to new analysis by Lichfields, Scotland’s combination of renewable energy, available land, and skilled talent is creating strong interest among developers assessing new large-scale data centre projects. The study by the UK planning and development consultancy highlights how the UK’s data centre industry currently contributes around £4.7 billion to the economy each year, with forecasts suggesting a further £44 billion could be added by 2035 through construction and operation. Scotland is well placed to capture a significant share of that growth, producing 113% of its electricity consumption from renewables in 2022 and exporting surplus clean power to the grid. Primed for large-scale projects Lichfields’ analysis references a previous site-shortlisting exercise led by Scottish Futures Trust, Crown Estate Scotland, and Scottish Enterprise, which identified a range of potential locations including Aberdeen, Dundee, Fife, and parts of the Highlands, with the right combination of renewable capacity, land availability, and technical expertise. However, most large-scale schemes remain concentrated in southern England, reflecting differences in planning support and grid capacity. Dan Evans, Associate Director at Lichfields, says, “For developers, Scotland offers something few regions or countries can match: abundant low-carbon energy, space for expansion, and a strong engineering base. "The combination of renewable generation, cool climate, and established technical skills creates ideal conditions for sustainable data centre operations. “Across the UK, we’re seeing growing demand from investors and operators looking for sites that balance performance, cost, and environmental responsibility. Scotland’s renewable strength and land availability tick those boxes, but delivery confidence remains key. "Developers need clarity on where projects will be supported and how long approvals will take. A consistent national position, backed by local planning frameworks, would make a real difference in turning interest into investment.” What is needed The analysis points to several practical measures to help maintain momentum, including allocating land for data centre development in new Local Development Plans, using Masterplan Consent Areas to simplify consents for complex or multi-use sites, and encouraging early coordination between planning authorities, developers, and energy providers. It highlights the £3.9 billion regeneration of the former Ravenscraig steelworks in North Lanarkshire as evidence of growing confidence in Scotland’s potential. The project, which includes one of the UK’s largest AI-ready data centres, will support around 2,000 long-term jobs and deliver a £1.2 billion construction boost, contributing an estimated 0.4% to Scotland’s GDP each year once operational. Dan continues, “Scotland has an opportunity to position itself as a genuine alternative to traditional UK data centre clusters. By combining its renewable capacity with a more agile planning approach, it can attract long-term global investment, create skilled employment, and strengthen its reputation for sustainable growth. “Developers are ready to commit where policy, infrastructure, and delivery are properly coordinated. With the right signals from government and local authorities, Scotland could move from potential to performance very quickly.”

Zoho to open new UK data centre

Zoho, a provider of cloud-based business software and productivity tools, has announced it will open a new UK data centre in the first quarter of 2026. The announcement comes alongside 43% growth in the UK and a tripling of staff numbers over the past two years. The new facility will allow customers to retain data within the UK, addressing demand for greater data sovereignty, particularly in sectors such as financial services and the public sector. The company will also relocate its UK office from Bletchley to Milton Keynes in the same quarter to support further team expansion. Strengthening UK operations and compliance Zoho’s UK strategy is built around its Transnational Localism programme, which provides local teams to support customer needs and contribute to self-reliant regional economies. The latest growth expands its customer-facing staff across sales, support, and marketing. Sachin Agrawal, UK Managing Director of Zoho, says, "In a constantly moving landscape impacted by geopolitical tensions and economic instability we are focusing deeply on enhancing the customer experience we provide to our UK customer base. "We understand the shift to customers wanting to host their data within the boundaries of the UK, which is particularly important in industries such as the public sector and financial services. Data privacy and protection continue to be at the core of our operations and is enhanced further with our new data centre. "Investment in our new office space enables us to continue to strengthen our growing team, ensuring that we not only deliver the best software, but the best service and support from those with excellent local knowledge of the market." At its Zoholics Birmingham event, Zoho also confirmed new compliance features for UK customers. Zoho Books is now recognised by HMRC for Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA), adding to its existing approval for VAT. From April 2026, this regulation will apply to sole traders with qualifying income above £50,000 and from April 2027 to those above £30,000.

8x8 opens new data centre in France

Cloud communications provider 8x8 has opened a new data centre in France to meet growing demand for in-country data hosting and regulatory compliance. The facility is designed to support France’s data sovereignty and residency requirements, including GDPR and local hosting mandates. It also seeks to provide low-latency access and enterprise-grade reliability for businesses and public sector organisations. Expansion in the French market The announcement follows a year of growth for 8x8 in France. The company appointed Christian Laloy as Country Lead, strengthened its collaboration with IT services group SCC, and formed a partnership with the French trade association for customer relations (AFRC). “While others choose to operate remotely, we’re investing locally,” says Christian Laloy, Country Manager, France at 8x8. “Some providers choose not to locate in France and, in my mind, that shows a lack of respect for the local businesses, the local people, and the culture. "This new data centre makes our position clear: 8x8 is committed to serving French organisations with secure and fully compliant technology and transparency.” Supporting regulated industries The new site is part of 8x8’s wider strategy to serve regulated and security-conscious sectors. By storing data in-country and complying with European requirements, the company aims to increase trust amongst French customers. “8x8 isn't just entering the market with an innovative approach; by locating its data centres in France, the company helps deliver its customers a high level of data sovereignty, in line with European regulatory requirements,” claims Regis Davesne, Director of SCC France. “This choice significantly boosts confidence and makes a real difference for customers looking for a solid, reliable long-term partner.” The French opening is one of several European investments planned for 2025 as 8x8 expands across markets where compliance and security are key considerations.

NorthC completes acquisition of six Colt data centres

NorthC, a Dutch provider of sustainable data centre and colocation services, has finalised the acquisition of six data centres from multinational telecommunications company Colt Technology Services, taking over operations on 1 September 2025. The sites are located in Frankfurt, Berlin, Hamburg, Munich, and Düsseldorf in Germany, and in Amsterdam in the Netherlands. The acquisition adds more than 25MW of capacity to NorthC’s platform and expands its presence in both the Benelux and DACH regions. In Germany, the deal increases the company’s footprint to seven data centres in total, while simultaneously boosting capacity in Amsterdam, a key connectivity hub. Expansion in Germany and the Netherlands NorthC says it plans to invest further in the newly acquired sites to expand capacity and improve efficiency and sustainability. The sites will be integrated into the company’s platform and aligned with its operational and service standards. Customers will also gain access to NorthC’s digital services, including the MyNorthC self-service portal. Alexandra Schless, CEO of NorthC Group, comments, “Today marks a major milestone in NorthC’s mission to build the premier regional data centre platform in Northwestern Europe. The integration of these six strategic sites accelerates our expansion, particularly in Germany, enabling us to support customers across all major metropolitan regions with scalable, secure, and sustainable digital infrastructure.” Customers and continuity Colt Technology Services will remain a long-term customer at the acquired facilities, which NorthC says will ensure continuity of service. The company adds that the new sites are in regions with strong connectivity and growing demand for digital infrastructure, allowing it to better serve enterprises, cloud and IT providers, and public sector organisations with cross-border operations. For more from NorthC, click here.

Digital Realty breaks ground in Rome

Digital Realty, a provider of carrier-neutral data centre, colocation, and interconnection systems, today announced it has broken ground on its first data centre in Rome, aiming to strengthen its position in delivering PlatformDIGITAL, a connected data centre platform, across the Mediterranean region. The new facility, ROM1, is intended to be a highly connected, carrier-neutral data centre, designed to support the latest AI technologies and provide access to a broad ecosystem of global and regional connectivity providers. ROM1 will also be equipped with the capacity to support and interconnect with multiple subsea cable systems, promising to position the site as a strategic hub and gateway linking Europe, Africa, the Middle East, and Asia. Strategically located within 15 kilometres of the coast, ROM1 will offer over 3MW of installed IT capacity upon completion, with future expansion under consideration across the 22-hectare site – equivalent to approximately 2.3 million ft² or around 213,677 m² – making it one of the largest data centre campuses in the country when fully built out. "Rome is not only a key economic hub in Southern Europe, but also a critical entry point to the broader Mediterranean – a region that is fast emerging as a vital gateway for global connectivity," sats Alessandro Talotta, Managing Director, Digital Realty in Italy. "ROM1 represents a major milestone in our strategy to build out a dense network of highly connected, sustainable data centre hubs across key growth markets, enabling our customers to scale their digital infrastructure and reach across Europe, the Middle East, and beyond.” ROM1 will complement Digital Realty’s existing presence in other Mediterranean locations including Athens, Marseille, Zagreb, and the recently launched HER1 facility in Crete. It also precedes the forthcoming planned development of a new interconnection hub in Barcelona as part of the company’s expansion across Europe’s southern edge. According to Digital Realty, ROM1 is expected to contribute to faster, more resilient connectivity across Southern Europe and could significantly reduce latency between northern and southern Italy, bolstering the country’s competitiveness on the global stage. In line with the company's global sustainability strategy, ROM1 will be matched with 100% renewable energy, supporting the data centre provider's goal to minimise environmental impact while meeting growing demand for digital infrastructure. The ROM1 data centre is currently on schedule to be completed in 2027 and marks the first phase of a larger campus. For more from Digital Realty, click here.

Frankfurt becomes 1GW DC market, closing in on London

The colocation data centre market in Frankfurt grew past the 1GW mark in Q2 2025 and narrowed the gap with London, Europe’s largest market, in the process. According to new research from US commercial real estate company CBRE, the Frankfurt market closed at 1.02GW in the second quarter, including 26MW of new capacity. Frankfurt, Europe’s second-largest market, is now just 114MW smaller than London, the largest market since CBRE initiated coverage of colocation data centres in 1999. Over the past decade, the supply of Frankfurt has grown 20% per annum, on a compounded basis. The growth of Germany’s financial capital has largely been driven by hyperscalers and digital service providers whose investment has led to new developments in the metro area and expansion efforts in submarkets such as Offenbach. “Frankfurt’s growth is remarkable given the difficulties providers are having securing the necessary power, appropriate land, and the regulation that providers must consider within the city,” comments Andrew Jay, Head of Data Centre Solutions, Europe at CBRE. “Nevertheless, interest in Frankfurt remains particularly high, driven by the need to deliver digital services, as well as keeping sought-after supply away from competitors.” Dirk Turek, Associate Director, European Data Centre Research at CBRE, adds, “Frankfurt’s high growth period began in 2019, when hyperscalers expanded their presence in the market. "Frankfurt’s growth potential is still relatively high, though additional demand is unlikely to be met by providers in the city’s largest data centre clusters, given electricity grid constraints. Established submarkets in Frankfurt will grow, albeit slowly, while new submarkets are formed.” For more from CBRE, click here.

Cresa launches DC capital markets platform

Cresa, a US-based commercial real estate advisory firm, has launched a new Data Center Capital Markets and Advisory platform following the appointment of Michael Morris, Sumner Putnam, and Matt Deutsch, previously of Newmark. The team, which has led data centre transactions across more than 50 global markets, will expand Cresa’s service offering to include advisory, transaction structuring, and capital markets services focused on major data centre projects. Michael Morris, who will lead the new platform as President, has been involved in more than 1,000 data centre real estate transactions and brings decades of experience to the role. He will be based in Cresa’s New York City office and supported by colleagues across the United States. “The data centre infrastructure expansion underway is one of the most important technological challenges of our time,” says Tod Lickerman, CEO of Cresa. “Michael and his team are true data centre leaders and provide significant, unique advantages to our clients with strong insight, advocacy, and the ability to get deals done.” Michael previously served as Vice Chairman at Newmark and established the firm’s data centre practice almost two decades ago. His past client list includes Digital Realty Trust, Verizon, CyrusOne, Memorial Sloan Kettering, CoreSite, New York University, Landmark Dividend, Chevron, and multiple hyperscale providers. He holds data centre design qualifications including Certified Power Quality Professional (CPQ) and Data Center Dynamics Cooling Professional, and an MBA in Finance from the Zicklin School of Business at Baruch College. “I am pleased to be joining Cresa to build a global practice,” comments Michael. “I was drawn to the firm’s shared vision, and I’m looking forward to serving as a board advisor to help shape its future.” Sumner Putnam joins as Managing Principal. He was also part of Newmark’s data centre team and previously worked at JLL. His expertise includes site selection, lease negotiation, and colocation agreements, with experience supporting clients such as CyrusOne, NYU, HSBC, Bank of America, Tumi, and Mapletree. The team also includes Cresa Senior Analyst Mackensey Gawne, and will collaborate with global data centre specialists from Cresa’s international partner, Knight Frank, with whom Morris has worked for nearly 25 years. The group will support a range of client types, including landlords, tenants, buyers, and sellers. In addition to its focus on data centre and mission-critical environments, the team will continue to support office sector clients with broader real estate requirements.

Echelon announces €2bn for Spanish data centre construction

Echelon Data Centres, an Irish-owned developer and operator of large-scale data centre infrastructure, has announced the signing of a joint venture (JV) agreement with Iberdrola, a global renewable power producer, to build and operate data centres in Spain. Echelon’s major shareholder is Starwood Capital Group, a global private investment firm with approximately $115 billion (£85.72 billion) in assets under management in North America, Europe, and Asia. Driven by the growing demand for cloud and AI services, the agreement is intended to expand Echelon’s international data centre portfolio with 100% of its Spanish power infrastructure and energy supply needs provided by Iberdrola. Echelon will be responsible for the planning, design, commercialisation, and day-to-day management of the JV, while Iberdrola will source and secure suitable land plots with grid connectivity for data centre development, as well as ensuring a continuous 24/7 supply of clean energy. Echelon will own 80% of the JV, with Iberdrola owning the remaining 20% through its dedicated digital infrastructure subsidiary, CPD4Green. Echelon Data Centres has more than 600 MW of capacity either operational or in planning in Ireland and the UK. CPD4Green has already secured more than 700MW of power connections, including Tier-1 locations close to Madrid and in Aragon. The first of the JV projects to be constructed will be Madrid South, a 160,000m² campus, expected to reach ready for service by 2030. The site has already secured a power connection of nearly 230 MW. An on-site solar PV facility will supply the DC with renewable energy, complemented by additional clean energy capacity from Iberdrola. The alliance between Echelon and Iberdrola aims to enable renewable energy generation and infrastructure to realise a sustainable future for data centre development across Spain. The collaboration is underpinned by guarantees to generate and consume renewable energy to support the operation of the data centres on a long-term basis. These data centres will align with the sustainability targets of both Echelon Data Centres and Iberdrola while also aligning with the objectives of the EU’s Climate Neutral Data Centre Pact. Commenting on the new partnership, David Smith, Chief Investment Officer at Echelon Data Centres, says, “Entering the Spanish data centre market has been a strategic goal for Echelon for several years. "Spain has material benefits as a market for our customers: a supportive regulatory and policy environment, high-quality talent from both a construction and operational perspective, and access to some of Europe’s lowest price renewable energy, in scale. "Our partner, Iberdrola, is a world leader in building and operating generation assets and we are delighted to have this opportunity to partner together to deliver critical infrastructure for our customers.” David Mesonero Molina, Corporate Development Director of Iberdrola, adds, "This agreement reinforces Iberdrola's strategy of facilitating the development of data centres, which have already become a key vector for the growth in electricity demand. "The alliance signed with Echelon will allow us to value our portfolio of sites with access to electricity connection and our ability to offer these infrastructures safe, clean, and competitive energy 24 hours a day, 365 days a year." For more from Echelon Data Centres, click here.

Quantica launches to accelerate data centre site development

Quantica Infrastructure, a US-based company that develops integrated systems for clean energy infrastructure projects, has officially launched with the aim of streamlining data centre deployment across North America. The company says it focuses on delivering "shovel-ready" sites that combine access to renewable energy, traditional grid power, and robust network connectivity. By offering an integrated, pre-prepared model for data centre development, Quantica aims to reduce project risk, speed up delivery, and simplify logistics. The company also emphasises a holistic approach that accounts for both environmental and community benefits. Quantica is backed by the Energy Transition arm of EnCap Investments, a US-based private equity firm that has raised approximately $47 billion (£35 billion) in capital since its founding in 1988. Together, the two companies aim to address infrastructure constraints in a market where demand for data centre capacity is rapidly increasing. “Hyperscale and AI growth are demanding better solutions for power, land, and network connectivity,” says John Chesser, CEO and founder of Quantica Infrastructure. “Quantica unlocks new opportunities by delivering shovel-ready, network-ready sites with dedicated renewable energy and resilient power supplies, so our customers can focus on innovation, not infrastructure logistics.” Quantica’s leadership team includes professionals with experience across the energy, network, and data centre sectors. Collectively, they have delivered more than 15GW of energy projects, constructed large-scale data centre campuses in 22 US states, and developed regional and international networks for global technology clients. “Quantica’s platform is the solution needed to break through current barriers to AI and digital infrastructure expansion,” claims Jim Hughes, Managing Partner at EnCap. “It gives us the opportunity to invest across the full spectrum of digital infrastructure – from renewable power generation to real estate and network connectivity. We’re excited by Quantica’s project pipeline and the momentum behind digital infrastructure growth.”