Data Centres

Data centre market set for unprecedented growth

Knight Frank, the global real estate adviser, has published its global data centres report, revealing a surge in market expansion - with a projected 46% increase in data centre capacity worldwide by 2027. This equates to an additional 20,828 megawatts (MW). This rapid growth, which has the potential to expand 177% by 2030, is underpinned by a substantial capital expenditure of £229 billion over the forecast period, reflecting the intensifying demand for digital infrastructure to support AI, cloud computing, and enterprise digital transformation. Following a 36% drop in data centre transaction volumes in 2023 due to global interest rate hikes, the market rebounded in 2024, surging 118% to £24.5 billion across single-asset purchases, portfolio acquisitions, redevelopment opportunities, and development site sales. Globally, the average real estate transaction value in the data sector space was £59 million in 2024, up 15% on the average transaction price in 2023, and up 44% on the pre-Covid transactions value average in 2019. Since 2019, average transaction value has grown at a compound-annual-growth-rate (CAGR) of 7.5%. Regional growth highlights • North America remains the dominant global market, with 11,638 MW in new capacity, reflecting a 54% growth rate and a staggering £128 billion in capital being deployed to support this expected growth. The region benefits from a combination of homegrown hyperscale dominance, increasing enterprise colocation demand, and strategic expansion into emerging secondary markets. • Europe, Middle East & Africa (EMEA) is set to expand by 4,529 MW (44%), requiring a £49.8 billion investment. European markets are experiencing a shift towards secondary hubs such as Milan and Madrid, primarily driven by power constraints in core markets like Frankfurt and London. • Asia-Pacific (APAC) is forecast to see a 4,174 MW (32%) increase, supported by a £45.9 billion investment. APAC remains a highly diverse market, with significant development in both established hubs like Tokyo and emerging locations such as Johor, Malaysia, where hyperscalers seek alternative expansion opportunities. Key markets driving expansion • Ashburn, USA: The world’s largest data centre hub will grow by 2,428 MW (58%), backed by £26.7 billion targeting this market. Despite power availability challenges, Northern Virginia remains the principal destination for hyperscalers and colocation providers. • Phoenix, USA: One of the fastest-growing markets, with a 126% surge (1,109 MW), attracting £12.2 billion in investment. The city’s appeal is fuelled by its scalable land options, business-friendly environment, and strong connectivity infrastructure. • London, UK: Retaining its status as a leading European data centre market, London is set to expand by 480 MW (36%), with £5.3 billion of investment. However, ongoing power constraints in established submarkets is encouraging development in outer London and secondary UK cities. • Milan, Italy: The standout European market with a remarkable 168% growth rate (310 MW), requiring £3.4 billion in investment. Milan’s rise is indicative of a broader shift in European data centre expansion towards new, less congested hubs. • Tokyo, Japan: A key APAC hub, poised for a 25% increase (295 MW) attracting £3.2 billion. Japan’s strategic location, stable power grid, and increasing demand for cloud services continue to drive growth. • Johor, Malaysia: Emerging as a major data centre hotspot with an 85% growth rate (335 MW), underpinned by £3.7 billion in investment. Johor’s proximity to Singapore, combined with attractive incentives, is establishing it as a viable alternative for hyperscale expansion. Stephen Beard, Global Head of Data Centres at Knight Frank, explains, “The global data centre industry is undergoing rapid transformation, with hyperscaler and colocation providers prioritising markets that offer access to power, robust connectivity, and a favourable regulatory environment. We’re increasingly seeing sustainability considerations shaping investment strategies, with an increasing focus on renewable energy adoption and energy-efficient design. “Real estate investors and developers are positioning themselves to capitalise on this demand, with an emphasis on acquiring strategically located land and securing long-term power agreements. “As global capital races to capture the next wave of digital infrastructure growth, the competition for prime development sites, particularly in power-constrained locations, will intensify. Industry stakeholders must navigate regulatory complexities, power availability concerns, and sustainability requirements to remain competitive in this high-growth sector. “Operators, investors, policymakers, and partners, each have a role to play in shaping this future. The task ahead is to build infrastructure that not only supports innovation, but also safeguards sustainability, security, and equity.” For more from Knight Frank, click here.

Riello UPS expands Multi Power2 modular series

Critical power protection specialist, Riello UPS, has announced an extension to its ultra-high efficiency modular range Multi Power2. The uninterruptible power supply manufacturer adds to its existing 500 kW MP2 UPS with a 300 kW version, along with a trio of 600 kW cabinets. The expansion increases the flexibility of the range, which is aimed at small to medium-sized data centres and other similarly mission critical applications. The additional units deliver all the series’ key benefits, including ultra-high efficiency of 98.1% in online double conversion mode, risk-free ‘pay as you grow’ scalability, a robust design that eliminates any single point of failure, and hot-swappable 3U 67 kW power modules that ensure downtime-free maintenance. Multi Power2 incorporates advanced silicon carbide (SiC) semiconductors that significantly reduce energy losses and heat generation, delivering data centre operators robust and reliable performance whilst lowering their operating costs, cooling requirements, and carbon emissions. The extended MP2 range now incorporates: • MP2 300 – up to five power modules for a maximum of 300 kW, features bottom cable entry and an integrated manual bypass switch;• MP2 500 – up to eight power modules for a maximum of 500 kW, features top cable entry, an integrated manual bypass switch, and air filters as standard;• MP2 600 – up to nine power modules for a maximum of 600 kW, available with or without switches and a choice of front-to-back or front-to-top ventilation. Up to four UPS can be installed in parallel, meaning the MP2 can protect up to 2,400 kW in a single system. As well as the expanded MP2, the complete Multi Power2 range also incorporates the popular Multi Power2 Scalable (M2S) innovation (which comes in 1,000 kW, 1,250 kW and 1,600 kW versions), and is designed with the needs of modern data centres in mind, as it can handle the rapid load fluctuations typically associated with AI load profiles. By connecting four M2S UPS in parallel, it can protect up to 6,400 kW. Leo Craig, Managing Director of Riello UPS, comments, “With this exciting expansion of the Multi Power range, we are addressing the data centre industry’s growing focus on energy saving practices for a more sustainable future. “By combining market-leading efficiency of 98.1% and flexibility in terms of power ratings and cabinets with a reduced carbon footprint and total cost of ownership, we are delivering data centres proven results without compromising on power continuity or performance.” For more from Riello UPS, click here.

Nokia recognised by Gartner for its data centre switching

Nokia has been named by Gartner as a Visionary in the 2025 Magic Quadrant for Data Centre Switching. Based on specific criteria established by the research organisation, Nokia is cited for overall 'Completeness of Vision' and 'Ability to Execute'. At a time when data centres must power new innovations such as AI in addition to their existing application workloads, these modern environments require reliability, ease of operation and energy efficiency. The Nokia data centre switching portfolio includes the 7220 and 7250 IXR data switching platforms, Service Router (SR) Linux network operating system, and the Event-Driven Automation (EDA) management platform. Nokia also provides support for Community SONiC-based data centre switching solutions. With a design that focuses on reliability and ease-of-use, the Nokia portfolio enables seamless connectivity and high performance to support business-critical data centre workloads and applications, including AI. Automation enables Nokia customers to make network operations simple and predictable, and adaptability ensures easy introduction into existing customer ecosystems, environments and processes. The portfolio also provides support for higher interface speeds that now push to 400 GbE, 800 GbE and beyond. In parallel, Nokia has a 4.7/5 star rating on Gartner Peer Insights in data centre switching based on 15 overall reviews as of 2 April 2025. Based on customer experience and product capabilities, the review platform aggregates user feedback. “They provide great solutions addressing some of the key issues such as Networking for AI workloads, Data Centre Gateway and Interconnect,” notes a Director of IT Services in response to what they like most about the product. Another reviewer on Gartner Peer Insights, a Senior Network Engineer, referenced the Nokia solution’s “Model driven CLI automation support and stability of the underlying OS” and commented, “Excellent software features available compared to other vendors using similar merchant silicon.” Michael Bushong, Vice President of Data Center, Nokia, remarks, “The data centre market is hot right now, and it can be hard to separate hype from facts, theory from practice. We believe independent assessments such as the 2025 Gartner Magic Quadrant for Data Centre Switching help. Nokia is one of a few suppliers with a compelling vision of where data centre networking ought to go. And we aren’t alone in thinking this. Microsoft, Nscale, Kyndryl, Lenovo and more agree. If you need reliability and automated operations, Nokia simply has to be considered.” Magic Quadrant reports are a culmination of rigorous, fact-based research in specific markets, providing a wide-angle view of the relative positions of providers in markets where growth is high and provider differentiation is distinct. Providers are positioned into four quadrants: Leaders, Challengers, Visionaries and Niche Players. The research enables companies to get the most from market analysis in alignment with their unique business and technology needs. For more from Nokia, click here.

Datadog unveils plans for data centre in Australia

Datadog, a monitoring and security platform for cloud applications, today announced plans for a new data centre to be located in Australia. The data centre instance, which will be built on AWS, will be Datadog’s first in Australia and adds to existing locations in North America, Asia, Europe and AWS GovCloud. The Australian data centre will store and process data locally, creating sovereign capacity to help Datadog’s customers meet local privacy and security requirements and preferences. Datadog currently works with more than 1,000 organisations in Australia and New Zealand. This includes companies in the banking and financial services, retail and ecommerce, software-as-a-service and technology industries, with public sector, healthcare and higher education representing key expansion verticals. “As the ANZ Chief Technology Officer at Flight Centre Corporate, I am watching Datadog unite our entire technology ecosystem into a single pane of glass - transforming us from reactive to proactive and elevating outcomes for every level of the business,” says Grant Currey, Chief Technology Officer, Corporate ANZ at Flight Centre Travel Group. “With Datadog’s end-to-end observability, we can detect and address service quality across multiple business units. Ensuring we are proactively resolving issues before they become business critical for us,” adds Lisa Tobin, Group Executive, Technology at SEEK. “Australia is a high-priority market for Datadog; we already have a strong employee base in-region and aim to create new jobs across various practices this year,” explains Rob Thorne, Vice President for Asia-Pacific and Japan (APJ) at Datadog. “Datadog has experienced surging demand in Australia and New Zealand. Analysts forecast IT spend will reach AUD $147 billion [£70.7bn] this year, with cyber security, generative AI and cloud services to receive significant attention. We are poised to support this appetite for advanced digital capabilities across the private sector, alongside the Australian Government’s ambitions to become a top three digital government.” “We continue to invest in Australia and New Zealand, with the recent opening of our Melbourne office and the expansion of our teams there, as well as in Sydney and Auckland,” notes Yanbing Li, Chief Product Officer at Datadog. “Australian companies are innovating rapidly and rely on Datadog to support their continued cloud investments, digital transformations and AI projects. For businesses in highly regulated industries like healthcare and financial services, hosting data locally is critical - a need we’re addressing with this new data centre.” All existing Datadog products will be available with the new data centre, which is expected to open in the middle of this year. For more from Datadog, click here.

Subsea cable and data centre operator GCX to rebrand

Global Cloud Xchange (GCX) has today announced its rebrand to FLAG. With strong continued investment, FLAG looks to maintain its growth and status as one of the largest privately owned, global subsea cable operators. Following the rebrand, the company’s Managed Services division will continue to operate under its existing name of GCX Managed Services. FLAG provides end-to-end, high-speed digital connectivity services. These include flexible leased capacity, dark fibre and Layer 2 & 3 services for hyperscalers, telecom carriers, OTT content providers, new media providers and enterprises via an interconnected platform of seven subsea and six terrestrial cable systems. The company serves clients in over 180 countries, operating a diverse global network across key routes, powering the global telecommunications backbone with a unique infrastructure that spans Asia, the Middle East, Europe and the USA. This network ensures route redundancy and diversity for mission-critical dataflows, providing reliable connectivity and neutrality in hard-to-access regions, all while being engineered for optimal reliability, availability and continuity. To enhance the network capability and address the growing demand for data processing and storage, FLAG also provides modular data centres, offering scalable, resilient solutions for high-performance computing deployments where customers need it most, from the network edge to cable landing stations and across multiple geographies. “FLAG represents our renewed commitment to global connectivity," says Carl Grivner (pictured above), CEO of FLAG. "Working closely with our clients, we are constantly upgrading and expanding our network to stay at the forefront of technological developments and meet evolving market demands. This ensures our clients receive the most advanced connectivity solutions, enabling them to scale, secure and optimise their data in an increasingly interconnected world.” FLAG has shown strong year-on-year growth and has recently signed several material investments to enhance its Middle East and intra-Asia subsea capabilities. The rebrand is linked to FLAG’s focus on pursuing its long-term goals and prioritising investments across more geographies through subsea, edge data centres and cable landing stations. Overlaying these strategic pillars, FLAG is further developing its technology solutions to create customer-tailored propositions as demand for data traffic rises amid the growth in content, AI and digital services. The company will continue investing in digitisation to advance its customer offerings and deliver innovative solutions across the globe. Carl continues, “This rebrand of FLAG allows us to move forward with a clear vision and the flexibility to innovate and invest in our infrastructure in ways that provide unparalleled value to our customers and partners. With strong backing from our Board and 3i Infrastructure we are committed to delivering market-leading, high-performance solutions across the globe.” FLAG is run by a highly experienced management team, with Carl Grivner leading the company as CEO, supported by Brice Evin as CFO, Brad Kneller as CNO, Paul Abfalter as CS&RO, Nadya Melic as VP – Product and Marketing, and Asif Ghani – VP – Edge Data Centre Services. Both FLAG and GCX Managed Services will be jointly supported by the collective management team that includes Edward Parkin - General Counsel, Giancarlo Ferro - CIO, and MU Khan – VP of Human Resources.

CyrusOne to open second data centre in Milan

CyrusOne, a global data centre developer and operator specialising in delivering state-of-the-art digital infrastructure solutions, has announced plans to build its second data centre in Milan, named MIL2, which will deliver 54 megawatts of IT capacity to 18,000 square metres of technical space over three floors. The announcement follows the acquisition of a 19.68 acre site, strategically located within two Municipalities - Milan and Segrate - and four miles east of the city centre, close to Linate Airport. CyrusOne has prioritised creating opportunities for the community in the planning and development of the facility, offering approximately 30% of the overall site to the Municipality and working closely with the local authority to improve the area surrounding the data centre. The data centre will benefit from thoughtful landscaping, acoustic panels to reduce noise impact, and will be built 'heat reuse ready', offering the opportunity to distribute heat to local third parties where demand exists. “We are continuing to see significant demand from enterprise cloud and AI workloads, and are optimistic about the opportunities in Italy,” says Matt Pullen, EVP and Managing Director, Europe, CyrusOne. “The country has a strong historic industrial base and is welcoming of new industries. What’s more, Italy’s power infrastructure can potentially deliver more near-term utility power than many other EU countries and has planned effectively to ensure its power grid is resilient for the future. This latest acquisition further cements our commitment to providing modern infrastructure in Italy that provides jobs and benefits for the local area.” As part of the development, and subject to a purchase agreement, CyrusOne will transfer 8,300 square metres of land to TERNA to support the expansion of the Lambrate substation, situated on an adjacent plot of land. The site will receive a dual active power supply of 90 MVA at 220 KV for the facility from 2028, with the power generated from the substation feeding both CyrusOne MIL1 and MIL2 data centres. Additional power capacity from the substation will be made available to local businesses. Consistent with CyrusOne’s portfolio throughout Europe, sustainability is central to the development of the data centre, which is designed to achieve a BREEAM ‘Very Good’ certification as a minimum and will run on 100% renewable energy. Over 500 square metres of solar panels will provide power for ancillary areas and the data centre will achieve a low PUE through the use of a closed loop cooling solution and optimum chilled water temperatures to maximise free cooling hours. CyrusOne announced its entry into Italy in December 2024 following its acquisition of an 18.5 acre site, strategically located in the Municipality of Segrate, East Milan. The MIL1 data centre will deliver 27 megawatts of IT capacity across 9,000 square metres of technical space within a single building over three floors. For more from CyrusOne, click here.

Vertiv unveils scalable power solution, Vertiv PowerDirect Rack 

Vertiv has announced the launch of the Vertiv PowerDirect Rack, a 1U high-density 50V DC power system shelf designed to bring resilience to even the most demanding AI and high-performance computing (HPC) environments. This modular system scales up to 132kW per rack by integrating multiple power shelves, enabling expansion while minimising space requirements. Available globally, Vertiv PowerDirect Rack offers a complete infrastructure power solution, supporting two times the power capacity in the same footprint, compared to alternative solutions.   The Vertiv PowerDirect Rack is designed to help data centres maximise power efficiency and scale with ease. Built for Open Compute Project (OCP) ORv3 High Power Rack (HPR) environments, it delivers high-density power while reducing energy waste and simplifying operations. With flexible AC and HVDC input support, real-time monitoring and modular scalability, the power shelf enables seamless expansion to allow IT teams to meet growing power demands without increasing rack space or complexity, compared to traditional AC uninterruptible power supply (UPS) with separate rectification and power distribution, or lower density DC power shelves. “Today’s data centres face increasing pressure to deliver more power in less space while supporting the rapid growth of AI and HPC applications,” says Kyle Keeper, Senior Vice President of the Power Business Unit at Vertiv. “Vertiv PowerDirect Rack addresses these challenges with a scalable, energy-efficient DC power design that equips operators with the flexibility to adapt to evolving workload demands and build future-ready infrastructure.” Built for performance and adaptability, the Vertiv PowerDirect Rack delivers benefits that simplify power management and improve data centre energy efficiency. Key features include:  · Delivers up to 132kW per rack with N+N redundancy, enabling high-density deployments with a scalable, space-saving power architecture. · Achieves 97.5% peak energy efficiency, minimising power waste, reducing cooling demands and lowering operating costs. · Supports both AC and HVDC input, for seamless integration into diverse power infrastructures for future-ready data centres. · Hot-swappable, modular design for uninterrupted operations and effortless scalability as power needs grow.  · Advanced power management and reliability, with built-in safeguards to maintain continuous performance and prevent disruptions.

Trane sets new data centre cooling standards

Trane, by Trane Technologies, is revolutionising mission critical operations with the development of two new data centre cooling offerings - Magnetic Bearing chillers and Ascend chillers for facility chilled water cooling applications. Trane’s Magnetic Bearing Chiller provides unparalleled cooling capacity to address the escalating capacity needs of data centre thermal management systems. The introduction of the Ascend chiller platform for data centres provides even greater efficiency for high ambient temperature operations. “Next-gen microprocessors are expected to exponentially increase rack density, elevating demand for efficient, higher capacity and higher ambient air-cooled chillers,” says Steve Obstein, Vice President and General Manager, Data Centres & High-Tech, Trane Technologies. “Building on our leading platforms, in close collaboration with our customers, gives us the ability to redefine the standards of cooling efficiency, capacity and environmental sustainability for data centre owners and operators, helping them stay ahead of rapidly advancing thermal management needs.” Magnetic bearing chiller helps maximise cooling capacity The new air-cooled chiller, based on Trane’s Magnetic Bearing compressor platform, produces up to 850 tons, 3MW at data centre conditions on a single unit frame. The new chiller helps maximise cooling capacity per square foot of unit footprint, often allowing for a reduction in the number of chillers needed onsite and helping to lower installation costs. Replacing multiple chillers with a single larger capacity chiller can help reduce sound transmission to the local environment, helping reduce the impact in sound sensitive locations.  Ascend chiller enables higher ambient temperature operations Through the extended capabilities of the Ascend screw-compressor chiller platform, Trane is leading with solutions that meet customer needs to address escalating ambient temperatures from greater heat density generated by modern GPUs and AI adoption. Expansion of the Trane Ascend Air-Cooled Chiller with integrated indirect free cooling, supports data centre uptime with efficient operation at up to 145oF. Free cooling reduces reliance on mechanical cooling and helps reduce energy consumption and operational costs. Designed for higher efficiency and serviceability The new air-cooled chillers use refrigerants with lower global warming potential, supporting reduced energy costs and carbon footprints. Both chillers are equipped with Trane’s Symbio 800 unit controller with AdaptiView user interface, offering secure enhanced connectivity, flexibility and serviceability. Trane supports operations and uptime throughout the lifecycle of the data centre with thousands of local service experts across North America, strategically located in proximity to customers, and Smart Service options for proactive monitoring, predictive maintenance and improved thermal management systems.

SLA Insurance offers financing perks for data centres

Parametrix has launched an innovative insurance product specially designed for data centres which covers their commitments under Service Level Agreements (SLAs). The groundbreaking insurance provides immediate financial compensation for SLA defaults, significantly reducing overall risk exposure. The protection, underwritten at Lloyd’s of London, enables data centres to secure more favourable credit ratings, directly enhancing financing terms – including lower interest rates. As a result, data centre projects are more financially attractive to lenders, operators,and tenants alike. Downtime has a direct impact on a data centre’s revenue and financial stability. This challenge can limit financing options, making it difficult for operators to optimise funding structures. SLA Insurance for Data Centers from Parametrix directly addresses this issue by providing immediate financial compensation if an insured’s SLA is breached. This new parametric insurance coverage provides critical financial benefits across the data centre ecosystem. Operators can unlock pre-paid or escrowed funds, and reduce financing costs by demonstrating secure, insurance-backed SLAs. Data centre developers can secure better financing terms and a lower total cost of capital by mitigating operational downtime risk. For investors, SLA insurance from Parametrix enhances confidence and provides financial certainty in cases of downtime by ensuring rapid financial recovery. Meanwhile, data centre tenants benefit from stronger, insurance-backed SLA terms, which improve reliability and reinforce trust in their infrastructure provider. “Parametrix SLA insurance is a game-changer for the financial structuring of data centres,” says Jonathan Hatzor, CEO of Parametrix. “By removing the financial uncertainties associated with downtime, we help investors, developers and operators optimise capital efficiency, lower financing costs, and increase confidence in the stability of their assets.” He continues, “With the rapid expansion of cloud services, AI computing and digital infrastructure, financing data centres is more critical than ever, impacting stock market valuations and institutional investment strategies. Our coverage serves as a strategic enabler, safeguarding investments against performance-related financial risks and driving long-term growth.” With this new solution, Parametrix continues to redefine the role of insurance in technology infrastructure, making data centres more financially resilient and unlocking unprecedented growth opportunities.

Pulsant set to acquire two SCC data centres

Pulsant is set to acquire two data centres from European technology solutions and services provider SCC. This strategic investment will strengthen Pulsant’s unique edge infrastructure, platformEDGE, and marks the next phase in geographical expansion, enhancing its growing network of 12 data centres across the UK.The carve out deal will include SCC’s Birmingham and Fareham data centres, as well as the transfer of a high-quality roster of colocation-only clients to Pulsant, ensuring long-term stability, development and growth for clients, team members and the facilities themselves. In addition, the companies will form a new strategic partnership for critical colocation services across the UK, which includes access to Pulsant’s national network of data centres for all SCC clients. Based in Birmingham, the Cole Valley data centre benefits from a central UK location and proximity to a city of economic importance, making it a significant addition to Pulsant’s existing data centre network. It has a power capacity of around 2MW with potential for expansion. Meanwhile, the Fareham data centre is a modern carrier-neutral facility, with a mix of exceptional corporate and service provider colocation customers with a slightly higher power capacity of around 3MW. Both sites offer 25,000ft2 of data centre white space.Pulsant has a strong history of acquiring and integrating regional data centres to expand its coverage and capabilities, and the SCC investment will further strengthen its presence in the UK market. Rob Coupland, CEO of Pulsant, comments, "With the addition of two new data centres, we’ve expanded our UK coverage, strengthening our presence near key economic hubs that have traditionally been underserved in terms of digital infrastructure - particularly Birmingham, the UK’s second city. This will enable more businesses to benefit from Pulsant’s unique network of data centres and platformEDGE to reach new markets and grow their organisations. We’re excited to welcome and support the high-quality client base transitioning to Pulsant and look forward to fostering their continued growth. “SCC has an outstanding reputation, and we’re delighted to partner with them to support clients with their future colocation requirements. We are also excited to welcome the new team members, working together to deliver high availability services." James Rigby, Co-CEO of SCC, says, “SCC has been carefully reviewing options for the future of our data centres for some time. A clear priority was to find a specialist partner that will continue to invest in and operate these facilities for the long-term and with whom we can build a strategic relationship for the provision of these services to our clients. “Ensuring continuity for our customers, opportunities for our people, and a future-proofed infrastructure was critical in our decision. Pulsant’s expertise and commitment to growing its UK data centre footprint made them the ideal choice, and we look forward to working closely with Pulsant during this transition.” The data centre engineers and operational team members from both locations will be transferred to Pulsant on completion of the deal, expected in in April 2025. Fore more from Pulsant, click here.