Europe’s AI data centers move far from cities as power drives site decisions

Dallas-Fort Worth has unseated Northern Virginia as the world's leading data center market, according to new reports from Cushman & Wakefield and JLL Jones Lang LaSalle Incorporated, as insatiable demand for AI computing power reshapes the geography of digital infrastructure on both sides of the Atlantic.

Texas Takes the Crown

Cushman & Wakefield's 2026 Global Data Center Market Comparison ranked DFW as the No. 1 primary data center market in the world for the first time, followed by Atlanta, Virginia, Columbus, and Johor, Malaysia. The ranking evaluated 107 global markets across 24 metrics, including under-construction capacity, land availability, power availability, and market size.dallasinnovates+2

A separate JLL report reinforced the shift, naming Texas the top data center market in North America based on existing and under-construction inventory measured by gigawatt capacity. DFW's first-half 2026 numbers underscore the boom: total existing inventory reached 4,587 megawatts, with 2,297 megawatts of lease absorption and 3,202 megawatts under construction, all while vacancy remained below 1 percent.dallasinnovates

"The data center sector has officially entered hyperdrive," Andy Cvengros, executive managing director at JLL and co-leader of its U.S. data center markets team, said in a statement. "Record-low vacancy sustained over two consecutive years provides compelling evidence against bubble concerns, especially when nearly all massive construction pipeline is already pre-committed by investment-grade tenants."dallasinnovates

Europe's AI Data Centers Head for the Hinterlands

Meanwhile, a Reuters analysis published on Tuesday drew on JLL data showing that Europe's hyperscale AI data centers are moving far from traditional urban hubs. Between 2026 and 2028, planned hyperscale campuses will sit an average of 175 kilometers from major cities, compared with 46 kilometers for projects delivered between 2022 and 2025.kelo+1

"Data centres are being brought to where the power is, not the other way around," said Assad Noori, JLL's head of data centers for Europe, the Middle East, and Africa.marketscreener

JLL estimates the world's four largest hyperscale cloud providers — which include Meta ↘ 4.45%, Google Alphabet Inc. ↘ 0.05%, and Microsoft ↗ 0.27% — will spend $725 billion in 2026, up 77 percent from $410 billion in 2025, mostly on AI computing and data center infrastructure.kelo

Power Over Proximity

The common thread linking both trends is power. In DFW, Texas's independent grid, pro-business regulatory posture, and abundant land have drawn developers away from congested Virginia. In Europe, core markets like Frankfurt, London, and Amsterdam face land shortages and lengthy grid-connection waits, with powered land costing an average of €2.36 million per megawatt compared with as little as €200,000 in tertiary locations.marketscreener+1

Of nine proposed gigawatt-plus data centers across Europe, just one is planned near a major city — Paris — with the rest spread from rural Spain to northern Sweden.kelo