European AI Data Centres Move Away From Major Cities

European developers of AI data centres are moving planned hyperscale sites away from major cities to find cheaper land, lower energy costs, and faster grid connections, Reuters reported in a story carried by Euronext. Data from JLL shows sites planned for 2026 to 2028 will be an average of 175 kilometres from major hubs, compared with 46 kilometres for projects delivered from 2022 to 2025.

JLL said greenfield projects make up 39% of Europe's future pipeline, compared with 8% of delivered projects. Inner city locations are expected to fall to 5% of the pipeline from 13%, with other projects planned for industrial areas or locations at the edge of cities.

The shift is tied to AI training campuses, which need large amounts of electricity and water for cooling. JLL estimates the world's four largest hyperscale cloud providers will spend $725 billion in 2026, up from $410 billion in 2025, mostly on AI computing and data centre infrastructure.

Powered land costs an average of €2.36 million per megawatt of IT load in core markets such as Frankfurt, London, Amsterdam, Paris, and Dublin. The average is €978,000 in secondary cities such as Copenhagen, Warsaw, and Milan, and €512,000 in tertiary areas such as Bordeaux.