• European AI data-centre projects are moving farther from major cities as developers chase cheaper land, available power and faster grid connections.
• New projects due between 2026 and 2028 will sit an average 175 kilometres from major hubs, up from 46 kilometres for projects delivered since 2022.
• The shift could direct investment into less-developed regions, but rising demand for electricity, water and land may intensify local environmental and infrastructure pressures.

Europe’s next wave of artificial intelligence infrastructure is moving away from its traditional urban centres.

Developers are increasingly targeting locations where electricity is easier to secure, land is cheaper and grid connections can be delivered faster. The move is reshaping where billions of dollars in AI infrastructure investment could land across the continent.

Data from JLL shows that hyperscale data centres scheduled to come online between 2026 and 2028 will be built much farther from major cities than recent projects.

The average distance from a major hub will reach 175 kilometres. That compares with 46 kilometres for projects delivered between 2022 and 2025.

Power availability reshapes site selection

The shift reflects mounting constraints in established data-centre markets such as London, Frankfurt and Amsterdam.

Sites with adequate power have become increasingly difficult and expensive to secure. AI training facilities also require far more electricity and land than conventional cloud infrastructure.

“The determining factor is increasingly where sufficient power can be secured, rather than simply where demand exists,” said Assad Noori, JLL’s head of data centres in Europe, the Middle East and Africa. “Data centres are being ‌brought to ⁠where the power is, not the other way around.”

Greenfield developments now account for 39% of Europe’s future data-centre pipeline, according to JLL. They represented only 8% of projects already delivered.

At the same time, inner-city projects are expected to fall to 5% of the pipeline from 13%. Most future facilities are instead planned for industrial zones or areas on the edges of cities.

The economics reinforce that shift.

JLL estimates powered land costs an average €2.36 million per megawatt of IT load in Europe’s core markets. That falls to €978,000 in secondary cities such as Copenhagen, Warsaw and Milan.

In tertiary markets such as Bordeaux, the average drops to about €512,000. Some sites can cost as little as €200,000 per megawatt.

Amsterdam remains the most expensive market at about €2.7 million per megawatt. London follows at €2.6 million, with Frankfurt at €2.5 million.

AI spending raises infrastructure pressure

The scale of planned spending is adding urgency to the search for suitable sites.

JLL estimates the world’s four largest hyperscale cloud providers will spend $725 billion in 2026. That would be 77% higher than the $410 billion spent in 2025.

Most of that capital is expected to support AI computing and data-centre infrastructure.

“Hyperscale AI infrastructure requires a completely different scale of power and land,” Noori added.

RELATED ARTICLE: Adani to Invest $100 Billion in Renewable Powered AI Data Centres Across India

Major technology companies including Meta, Google and Microsoft are investing heavily in data-centre capacity worldwide. JLL did not identify the developers behind the European projects included in its dataset.

The location shift could also change the regional economic impact of AI investment.

Areas outside established technology hubs may gain construction activity, infrastructure upgrades and employment. Governments seeking to revive weaker regional economies could see data centres as a source of private investment.

However, the projects can bring significant political and environmental risks. Large campuses compete with households and businesses for electricity. They can also require substantial water resources for cooling and occupy land that may face competing development or conservation demands.

London reflects wider capacity constraints

London illustrates the pressures facing Europe’s established data-centre hubs.

“London has already seen significant digital infrastructure development driven by cloud and has other asset classes competing for space leading to high land prices. Power is now constrained in the key cloud locations across the market,” said Rupert Duckworth, associate director, EMEA data-centre advisory at real estate firm Savills.

For executives and investors, power access is therefore becoming a central factor in European AI infrastructure strategy.

Location decisions increasingly depend on grid capacity, permitting timelines, water availability and local political support. Those factors can affect both project economics and long-term operating risk.

As AI investment accelerates, Europe’s data-centre geography is likely to spread well beyond its established technology capitals. That could bring capital into new regions, while placing greater responsibility on governments and developers to balance digital growth with energy security, environmental limits and community concerns.