European signings for AI data center capacity have tripled in 2025 as neocloud demand for AI infrastructure surges, according to research from CBRE.

The report, which covers the European data center market supply as of Q3 2025, said that the volume of data center capacity sold to neocoloud providers rose from 133MW in the first nine months of 2024 to 414MW across the same period in 2025.

Andrew Jay, head of data center solutions, Europe at CBRE, said: “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 center providers are growing more comfortable with the ambitions of neocloud providers and the covenants that come with it.”

More than half of this capacity (57 percent) is based in Nordic countries. CBRE said that developers are building at scale in this region due to difficulties building in the FLAPD markets, as well as the attractiveness of cheaper power in the Nordics.

Kevin Restivo, director, European Data Center Research at CBRE, added: “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.”

The report explained that data center providers are “taking measures to mitigate the additional risk taken on by leasing capacity to neocloud firms.”

“For example, higher rents are charged to account for the higher risk client and to help recover the considerable build costs incurred in building AI-ready data centers.”

Supply surges, exceeding take-up

More broadly, CBRE forecasts that FLAPD new supply will reach 623MW in 2025, up from 374MW in 2024. Total new capacity delivered across Europe is projected at 871MW, 34 percent more than the 2024 supply total.

New data center supply delivered in the quarter was 114MW, down from the 137MW reported in Q2. Most of this was delivered in London, which saw 68MW of new capacity added in the quarter. The rest was spread across Paris (32MW), Zurich (12MW), and Amsterdam (9MW).

However, in Q3, overall take-up fell short of new supply delivered – the second consecutive quarter this occurred.

CBRE said it was “unusual” for new supply to exceed take-up in a quarter but pointed to two new wholesale facilities delivered in London and Paris in Q2 and Q3, respectively, which have only been partly let.

“This is increasingly rare as new wholesale data centers are usually pre-let or the facility is constructed with a customer in mind,” the report said.

The firm noted that take-up for the year is expected to be greater than supply, at 906MW.