The demand for digital infrastructure is unprecedented, and the opportunities in front of us are immense, writes Tesh Durvasula, CEO of AtlasEdge Data Centres.
With 2025 already picking up the pace, I’m struck by the speed of change shaping our industry and the exciting road ahead. The demand for digital infrastructure is unprecedented, and the opportunities in front of us are immense. Across hyperscale and colocation segments, an estimated 10 GW is expected to break ground globally this year, with 7 GW likely reaching completion. That’s around $170 billion in asset value that will need financing in 2025 alone – a staggering figure that reflects the scale of transformation underway.
Europe, of course, is a key part of this growth – with valuations for the continent’s data centre market as high as €65 billion. But what excites me most is how this is no longer just a story about traditional hubs like Frankfurt, London, Amsterdam, Paris, and Dublin (FLAP-D). Increasingly, we’re seeing energy, investment, and innovation flow into emerging markets like Lisbon, Vienna, and Barcelona – markets that are breaking through and reshaping the future of digital infrastructure.
Our customers are at the heart of everything we do, and our focus is on riding this next wave of growth to build the infrastructure they need—not just today but for the years ahead. Whether it’s addressing their challenges in power, connectivity, or sustainability, we’re committed to enabling their success in an ever-evolving landscape.
Why the Next Wave of Markets are Thriving
So, why is this shift happening?
To put it simply: the traditional markets can’t do it all anymore. Power constraints in FLAP-D regions are making it harder to scale, and affordability is increasingly a challenge, with land and operational costs spiralling. Add in stricter regulations and record-low vacancy rates, and it’s clear that secondary and emerging markets have a huge role to play in meeting growing demand.
What I find most compelling is how diverse these markets are, both in their challenges and their opportunities. Take Lisbon, for example – it’s quickly establishing itself as one of the top internet hubs in the Atlantic, thanks to its underwater connectivity, abundant renewable energy, and thriving tech ecosystem. Or consider Germany – the country’s push for digital sovereignty, strong industrial base, and technological investments are propelling growth beyond Frankfurt into rapidly scaling markets such as Stuttgart and Dusseldorf where AtlasEdge is growing. Then there’s Vienna, with its central location, advanced infrastructure, and strong investments in AI. These aren’t just “alternatives” to FLAP-D; they’re becoming critical to the next phase of Europe’s digital infrastructure.
And the numbers back it up:
- Non FLAP-D markets have shown 48% growth, compared to 16% for FLAP-D.
- Emerging hubs like Madrid and Warsaw are expected to have grown their market size by nearly 50% in 2024.
- Regions like the Iberian Peninsula and Nordics are attracting hyperscale development thanks to their renewable energy resources and availability of land.
This is why I believe so strongly in the dual growth we’re seeing: depth in FLAP-D and breadth in these new markets. The two are complementary, not competing, and both are essential if we’re going to keep pace with demand.
Shaping the Future
As I look ahead, I can’t help but feel energised by the opportunities in front of us. The growth of secondary markets isn’t a passing trend, it’s a fundamental shift that will define the next decade of our industry.
But this is about more than growth and infrastructure, it’s about what we enable. Data has the ability to bridge divides, spark innovation, and create opportunities, and that’s something we’ll always stand behind. 2025 is set to be a landmark year, and while the scale of the challenge is enormous, so is the potential.
This article was first published in The Tech Capital. Read the original article here.
About AtlasEdge
AtlasEdge Data Centres is one of the fastest growing data center providers in Europe. Together with our clients and partners, we’re defining the European edge. Our distributed data centre portfolio allows customers to plan and shape their technology and network infrastructure to meet their growing requirements for lower latency, better performance and localized solutions. Established in 2021, AtlasEdge is a joint venture between Liberty Global and DigitalBridge.
Our continued data centre expansion and deep industry expertise across Europe ensures we serve businesses where they need us most. We serve 800+ customers across 23 data centers connected to more than 70 on-net carriers.