Development in European data center markets will create an additional 8.462 million sq ft (786,130 sqm) of logistics space over the next three years, according to real estate services firm Savills.

The firm said it had observed recent trends in logistics and data center activity in Ireland and found that, in Dublin, occupiers connected to the data center supply chain accounted for 10 percent of annual logistics take-up in 2025, totalling 225,000 sq ft (20,905 sqm), with a further 500,000 sq ft (46,450 sqm) in the pipeline.

Savills then compared take-up volume relative to growth in energy demand from data centers in the European market, applying its findings from Dublin, and suggesting a logistics take-up impact of 7,250-10,560 sq ft (674-980 sqm) per data center megawatt. Live data centers in Europe currently account for 10.9GW, with a further 2GW of data centers under construction.

“Much of the commentary around the growth of the DC market is focused on land sales and power, yet very little has been written about the ripple effect into the logistics market. Whilst our analysis is at an early stage, it is interesting to observe that in markets which have seen exceptional growth in DCs we are now seeing the suppliers to the DC community take traditional logistics warehouses,” said Kevin Mofid, head of EMEA Logistics Research, Savills.

“Taking an average of 8,900 sq ft (826 sqm) of logistics space per megawatt and extrapolating demand for the dominant European DC markets, Frankfurt, London, Amsterdam, Paris, and Dublin (FLAPD), where 950MW of space is currently under construction, we would estimate an additional 8.462 million sq ft (786,145 sqm) of demand for logistics space. While this trend is in its early stages in Europe, we’re already seeing evidence of this in the UK, with DC power solutions and AI infrastructure firm AVK SEG leasing 140,000 sq ft (13,006 sqm) of logistics space in the North West of the UK.”

Last month, logistics firm DHL said it would be expanding its warehouse footprint in the US to better serve the data center sector.