European Data Center Sector Continues to Grow in the First Quarter of 2022

Data centers are becoming more and more important. Especially in the real estate sector, where it estimates that demand may require up to 300MW of take-up during 2022.

According to Elliot Zounon, Director of Data Center Solutions Iberia at CBRE: “The growth and attractiveness for investors is evident, since few real estate assets offer the possibility of a significant revaluation when they are put on the market. The Data Center is the only sector whose raw material has an infinite expected growth. Investors have the opportunity to buy cheap land, build a sophisticated real estate asset and attract first-class tenants”.

Spain and Portugal have achieved a certain prominence in this sector where companies such as Google, Oracle and IBM have announced the opening of a cloud region in Madrid. In this regard, Zounon adds: “These operators face major challenges in meeting the high demand. For intrinsic and market strategy reasons, the Iberian Peninsula is at the forefront of their European expansion plans”.

Forecasts for the FLAP markets are expected to grow by around 20-30% annually, according to CBRE data; at the same time Madrid is expected to register growth of 540% and Barcelona 500%. With this context in mind, Elliot Zounon comments: “We are living a historic moment for the Iberian market, Madrid is expected to reach Paris levels (+400 MW) in the short term. With the current dynamics of the Iberian Peninsula, CBRE believes it is time to rethink the FLAP acronym and add the letter corresponding to Iberia.”