European data centres set for uneven boom as sovereignty and power shape investment

A recent sector study positions European data centres as a strategic asset whose placement and design are being rewritten by emerging policy and infrastructure realities. Decision-makers are increasingly treating digital sovereignty and tighter security rules as core criteria, prompting providers to create localised cloud offerings and compliance-first architectures. The report quantifies a sharp expansion in economic output, with the market’s footprint climbing substantially between 2025 and 2031 and driven by more than just hosting revenue. Construction activity, ongoing operations and supplier networks all amplify the sector’s regional economic impact, the analysis finds. Practical planning has shifted: site selection now marries energy sourcing, regulatory obligations and AI workload requirements into a single investment calculus. As a result, funding and capacity will gravitate to locations that can lock in long-term power deals and offer high-quality connectivity, leaving less-favoured regions behind. The study intentionally treats the move toward local facilities as a response to governance and commercial incentives rather than ascribing explicit geopolitical drivers. For investors and operators this changes priorities: projects are evaluated on energy certainty and network resilience as much as on raw land or proximity to customers. Policymakers face a balancing act between boosting domestic data capabilities and imposing costs that could slow adoption. Energy availability and grid planning therefore emerge as decisive constraints for large, AI-optimised campuses. For enterprise cloud strategists, locality and compliance are now central determinants of total cost and deployment speed. In sum, Europe’s future data infrastructure map will be drawn where policy, power and connectivity intersect, concentrating jobs and capital in strategically advantaged corridors.