Data centers leave European cities for energy

European data center development companies are shifting their operations away from major cities, seeking less expensive locations to benefit from lower land and energy costs—especially as demand for infrastructure to support artificial intelligence applications continues to grow. It is expected that the distance between new data centers and the nearest urban areas will average 175 kilometers between 2026 and 2028, up from 46 kilometers between 2022 and 2025, due to the difficulty of securing land and energy within major cities like London and Frankfurt. This is partly because of the enormous amounts of electricity and water needed to run AI models. The four largest cloud service providers are projected to spend around $725 billion on data centers by 2026, and AI-related workloads are expected to account for half of global capacity by 2030. Despite this trend toward rural and peripheral areas, major city markets like London and Frankfurt maintain high demand, facing challenges such as land restrictions and lengthy power grid connection times.

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