After a rocky 2024, the cost of delivering data centers in EMEA is finally showing signs of stabilization. Last year, we saw a perfect storm of saturated supply chains, volatile raw material prices, and hyperscalers competing for the same handful of trusted general contractors.

The result? Premiums everywhere – particularly for high-demand materials like steel and concrete, and especially for projects with aggressive programme timelines.

This year feels different. With some hyperscale leases paused, the pressure on delivery capacity has eased, and contractors have sharpened their pencils. Bids that were, six to 12 months ago, coming in at the very top of our benchmarks, are now landing more competitively.

The skills premium

Even with cost stabilization, one factor remains a stubborn driver of project budgets: specialist skill shortages. EMEA’s data center delivery market is dominated by fewer than ten major GCs, and within that group, the number of experienced MEP leads, commissioning managers, and specialist trades who can deliver to hyperscale standards is even smaller.

When programme demands are tight – and they almost always are – these skill sets command a significant premium, not just in GC prelims and fees, but all the way through the supply chain. If you want the best, you have to pay for it.

A short-lived breather

Enjoy the stability while you can though – it’s about to get busy again. Many of the paused leases have only been on hold for six-to-nine months while designs are refined. However, we expect these projects to come roaring back into the market over the next year, bringing capacity constraints and cost pressure right back with them.

That’s why broadening the contractor pool now is so critical. By training and upskilling local Tier 1 and Tier 2 contractors – many of whom have little or no DC experience but bring valuable regional resources – developers can strengthen delivery resilience and secure better value for money in the long run.

The rise of self-build

Another major shift to watch is the growing move toward self-build models among hyperscalers. By taking full control of delivery, these end users gain greater cost certainty, programme reliability, and the ability to optimize designs for their own operational needs.

For developers, this is a challenge and an opportunity. Those who can demonstrate unique value, whether through innovative delivery strategies, faster time to market, or sustainability leadership, will be best placed to keep their seat at the table.

Locations to watch

Scotland is emerging as a genuine dark horse in the EMEA DC market. Planning applications are progressing, connectivity is improving, and the region offers compelling sustainability advantages like natural free-air cooling. Find out more about Scotland’s potential here: Scotland Data Center Report

The next 12-24 months will define the competitive landscape for EMEA data centers. The winners will be those who act early – expanding capacity, securing partnerships, and preparing for the inevitable next wave of demand.

Soben’s annual Data Center Trends Reports deliver insights from every corner of the world. Our 2026 edition will cover everything from hyperscale self-build surges in EMEA and the Americas, to Asia-Pacific’s rising edge markets, to the innovations set to redefine cost, speed, and sustainability.

Expect fresh data on cost trajectories, AI-driven design shifts, and some dark horse locations that could become tomorrow’s hyperscale hubs. The 2026 edition is coming soon, and it’s set to shape the conversation for the next chapter of global data center growth.

Click here to sign up to be among the first to receive the report.

Plus, catch Soben’s group development director, Pieter Schaap, at DCD>Connect London 2025, where he’ll share his insights on ‘Overcoming construction hurdles - Are strategic partnerships the way forward?’