*Data centers, the digital engines of our modern world, are facing a critical bottleneck: a shortage of power. * This unexpected challenge is slowing down the expansion of these vital facilities across Europe, the Middle East, and Africa (EMEA), according to a recent report by Savills.
What's Driving This Demand?
The surge in demand for data centers is primarily fueled by the rise of artificial intelligence (AI), particularly since the release of ChatGPT in late 2022. As businesses and governments increasingly embrace AI, the need for massive computing power has skyrocketed, leading to an insatiable appetite for data centers. These centers require vast amounts of electricity to operate, creating a direct link between AI advancements and the demand for power capacity.
The Numbers Tell the Story
Since January, the amount of new data center capacity brought online has reached 850 megawatts (MW). However, this figure is 11% lower than the same period in 2024. This decrease isn't due to a lack of interest in data centers; instead, it's a direct result of power supply constraints delaying project timelines.
Understanding Power Capacity
Power capacity, measured in megawatts, is the key metric for data centers. It represents the total amount of power a data center can deliver to its servers, cooling systems, and other essential infrastructure.
The Bigger Picture
While the growth of new capacity has slowed, the overall live data center capacity is still up 12%, reaching 11,400 MW compared to 10,140 MW a year ago. Savills emphasizes that the slowdown in new power delivery is due to energy supply constraints, not a decrease in demand. The demand for data centers remains strong, creating an imbalance with the limited power supply.
Key Metrics
- Take-up: The actual amount of capacity newly occupied, which fell to 845 MW, only half of the power capacity leased in 2024. This figure includes pre-lets - leases already contracted for future data centers.
- Total Contracted Power Capacity: Including both live and future contracted capacity, grew 12% year-on-year to 14,500 MW, showing robust underlying demand.
- As of the third quarter of 2025, 91% of all data center capacity had been leased, up from 87% in the same quarter of 2022, also reflecting strong demand.
The Controversy
Is the power supply issue a temporary setback, or a sign of a more significant, long-term challenge for the data center industry?
What do you think? Share your thoughts in the comments below!
