"Power shortages, combined with increased regulation, inhibit data center development in Europe," says Andrew Jay, CBRE's head of data center solutions, Europe.
The European data center market's 20% growth faces issues like supply shortages, particularly in core markets like Frankfurt, with preleasing becoming common and power sourcing remaining a challenge.
Rental rates in Europe rise due to higher construction costs, reduced availability, and supply-demand imbalances, with examples like Amsterdam's vacancy dropping to 11.5%.
Singapore faces severe power constraints with minimal available capacity, causing rental rates to soar, while emerging markets attract increasing data center investment.
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