"The European colocation market is plugging the demand gaps for datacentre capacity caused by the waning appetites of hyperscale cloud firms by cozying up to neocloud providers, research from CBRE shows. The real estate consultancy's third quarter look at the state of the European datacentre market reveals that, despite a drop-off in hyperscaler demand for colocation capacity, the amount being acquired for hosting artificial intelligence (AI) workloads has soared."
"The volume of datacentre capacity sold to neocloud providers in the first nine months of the year rose to 414MW, up from 133MW compared to the same timeframe in 2024, said the CBRE report. While the report flagged London as being the location where the majority (68MW) of the 114MW of new datacentre supply that came online during the third quarter of 2025 was delivered, it also confirmed the Nordics as the most popular location for neocloud providers to take-up capacity."
Hyperscale cloud firms' appetite for colocation capacity has declined while capacity acquired for hosting AI workloads has surged. Neocloud AI-infrastructure providers such as Nscale and Coreweave have trebled datacentre capacity purchases over the past year, rising to 414MW from 133MW in the first nine months year-on-year. A total of 114MW of new datacentre supply came online in Q3 2025, with London accounting for 68MW. More than half (57%) of neocloud signings target Nordic countries like Norway and Iceland, driven by available capacity, lower power costs and abundant renewable power, which reduces operational expense for AI compute.
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