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 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.
“Neoclouds have expanded their footprint in Europe this year by absorbing vacant space that was originally intended for hyperscalers,” Andrew Jay, Head of Data Centre Solutions, Europe at CBRE, said. “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.”
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.
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.
“Neocloud providers are taking AI specific capacity at scale in Europe,” Kevin Restivo, Director, European Data Centre Research at CBRE, added. “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.”
