Data centres have become a real estate investment magnet, drawing “unprecedented” funding last year on the back of relentless and rising demand for AI, more than double the share seen in 2020.
Investment manager Colliers’ 2026 Global Investor Outlook shows a sharp uptick in investors’ interest, with data centres accounting for almost a third (31%) of all capital raised across 2025, up from 15% five years ago.
While the US remains the largest and most mature market, data centre investment in EMEA is growing quickly, with markets such as Germany, the Netherlands, and the UK attracting attention for their connectivity, regulatory frameworks, and proximity to tech hubs.
In particular, cities like Frankfurt, Amsterdam, and London have seen strong demand, resulting in the UK, for example, seeing data centre planning applications spike by 63% last year to reach an all-time high, according to analysis of planning databases by City AM.
However, that development is not without its challenges. Colliers said that power constraints and planning hurdles are slowing new development, pushing some investors to explore secondary and emerging markets, like Southern and Eastern Europe, where governments are investing in digital infrastructure and energy resilience with less red tape.
Securing reliable energy sources has emerged as a persistent concern, especially in urban areas. In Frankfurt, which already hosts more than 120 data centres, the energy grid is being pushed to its limits, with these facilities accounting for up to 40% of the city’s total power demand.
At the same time, developers must navigate a maze of government policies, sustainability regulations and planning frameworks, all potential roadblocks that represent some risk to investors.
For that reason, the study found that the sector’s growth is being driven by platform investments and joint ventures, with investors looking to acquire stakes in businesses already operating as well as development platforms that offer access to expertise. Colliers said that this approach reflects a trend across real estate, with capital increasingly favouring active strategies and long-term partnerships.
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With the world’s biggest tech firms, including Meta, Google, and Amazon, busy signing a raft of new data centre development deals, investment is expected to remain a priority, potentially offering long-term growth, as long as the AI bubble doesn’t burst.
But success will depend on navigating infrastructure limitations, regulatory complexity, and operational demands, leaving investors with deep market knowledge and strategic partnerships best placed to find sustainable value.
“Occupiers are seeking data centre solutions that balance resilience, sustainability, and speed to market,” said Lottie Tollman, Colliers’ head of data centres advisory, EMEA.
“Collaboration between operators, landlords and investors is vital to meet evolving requirements and unlock long-term value.”