European data center boom to create 8.5 million sq ft of logistics demand over three years

Development in European data center markets will create an additional 8.5 million square feet of logistics space over the next three years, according to real estate services firm Savills. The firm analyzed trends in logistics and data center activity in Ireland and found that in Dublin, occupiers connected to the data center supply chain accounted for 10 percent of annual logistics take-up in 2025, totaling 225,000 square feet. A further 500,000 square feet is in the pipeline. Savills compared take-up volume relative to growth in energy demand from data centers across Europe, applying its findings from Dublin. The analysis suggests a logistics take-up impact of 7,250 to 10,560 square feet per data center megawatt. Live data centers in Europe currently account for 10.9 gigawatts, with a further 2 gigawatts of data centers under construction. Taking an average of 8,900 square feet of logistics space per megawatt and extrapolating demand for the dominant European data center markets. Frankfurt, London, Amsterdam, Paris, and Dublin. where 950 megawatts of space is currently under construction, Savills estimates an additional 8.462 million square feet of demand for logistics space. Kevin Mofid, head of EMEA Logistics Research at Savills, noted that while much commentary focuses on land sales and power for data centers, little has been written about the ripple effect into the logistics market. "Whilst our analysis is at an early stage, it is interesting to observe that in markets which have seen exceptional growth in data centers we are now seeing the suppliers to the data center community take traditional logistics warehouses," Mofid said. The trend is already visible in the UK, where data center power solutions and AI infrastructure firm AVK SEG recently leased 140,000 square feet of logistics space in the North West.