11/12/2024
Data centers are increasingly viewed as essential to the AI Surge, with a significant demand for capacity driven by the growth of artificial intelligence and cloud computing in Europe.
Operators anticipate commissioning 65% more data center capacity in 2024, rising from 16MW to 26.4MW, while contractors expect a 61% increase, from an average of 14MW in 2023 to 22.5MW.
However, the industry faces challenges in building this capacity profitably and sustainably, particularly due to power availability and inadequate planning for energy infrastructure across the EU and the UK. Additionally, the data center construction supply chain has been disrupted by the pandemic, geopolitical issues, and armed conflict, leading to increased costs and delays.
With 65% of contractors and 58% of operators expecting a greater risk of disruptions in 2024, concerns about environmental regulations, geopolitical instability, and climate risks are paramount.
These challenges could hinder the ability of operators to seize commercial opportunities and may slow the pace of digital transformation across Europe, with seven out of ten respondents agreeing that supply chain shortages will impact digitalization efforts over the next five years.
Read the full report here: bit.ly/3A9qxpK