2025
Global Data Center Market Report
Regional Market Overviews
France
As of March 2024, France hosted the third highest number of data centers in Europe, behind the UK and Germany (Statista, 2024). Its data center capacity grew at a CAGR of 13.4%, from 235.0MW in 2016 to 566.0MW by 2023, and is expected to reach 1.8GW by 2033 (France Datacenter, 2024) (France Datacenter, 2023).
In 2023, investments in France’s data center market reached €879.0 Mn ($944.3 Mn), driven by a global shift towards data-centric services like Big Data, IoT, AI, and cloud computing. The growing need for data localization – storing and processing data within the country of collection – has been a key factor driving new data center developments, particularly following the implementation of the General Data Protection Regulation (GDPR) (JLL, 2024)(France Datacenter, 2023).
Additionally, submarine cable infrastructure is anticipated to positively impact the investment in the data center market as it plays an important role in connecting data centers across different regions. As of January 2025, France has 28 active cables, with three more planned by 2025 and one each planned for 2026 and 2027, thereby fueling investment in the sector (Research and Markets, 2024) (TeleGeography, 2025).
GDP (Current Prices) USD (2023) | 3,053 Bn |
Projected Average GDP Growth (2024-2028) | 1.3% |
10-year Govt Bond Yield (12-month rolling average) | 3.0% |
Country Credit Rating | AA- |
Renewable Energy Share | 16% |
Data Center Capacity (Q1 2024) | 566 MW |
Note: Renewable Energy Share excludes hydropower
Market Dynamics and Growth Factors
France’s data center market is flourishing, driven by substantial investments from local and global players, government-backed digitalization efforts, and the growing adoption of AI, machine learning, and Big Data solutions. France’s strong connectivity to major markets and the presence of leading cloud service providers, such as OVHcloud, AWS, Microsoft, Google, and Oracle, makes it an attractive hub for data center development. The country’s Free Trade and Industrial Free Zones offer financial incentives, such as tax breaks and reduced duties on imported equipment, which helps in lowering the overall cost of setting up and operating data centers. These zones also offer streamlined regulatory processes, making it faster and easier to establish and expand data center operations within these areas. Additionally, unlike other European markets facing energy constraints, France benefits from its robust nuclear power infrastructure, providing significant energy autonomy (Express Computer, 2023).
Strategically located in the heart of Europe, Paris is an ideal location for organisations and data centers to connect with other major markets in the region. It serves as a key center for French internet traffic and facilitates data exchange between the US and Europe (Equinix, n.d.). This is the reason it is home to major public cloud platforms like AWS, Microsoft Azure, Google, IBM, and Oracle. The city had a strong pipeline of planned capacity addition of 259.0MW apart from the 329.0MW, which was already under construction as of Q2 2024. This surge reflects the city’s vital role in meeting the growing demand for data storage and rapid connectivity. Despite a subdued first half of 2024, Paris was set for a significant increase in capacity, with 78.0MW anticipated to go online for the whole year, further pushing vacancy rates to levels below those in Amsterdam and London (JLL, 2024).
Paris also hosts large-scale projects like Digital Realty’s Paris Digital Park, a campus with four interconnected data centers. Two buildings are already operational, and two more are planned, offering a total of 76.0MW of IT power (Baxtel, 2024) (Mercury, 2024). The park, potentially powered by 100.0% renewable energy, emphasises advanced technologies and sustainable practices, including free cooling systems and high-density power racks (Mercury, 2024).
Beyond Paris, which houses 42.7% of France’s data centers, cities like Lille, Marseille, Lyon, and Nantes are witnessing growth, reflecting a trend towards regional expansion (Cloudscene, 2025). Nation Data Center, for instance, is expanding with new facilities in Brittany and Normandy and plans for more in Lille, Toulouse, and other cities (Data Centre Dynamics, 2024).
France’s dedication to sustainability necessitates the establishment of data centers that align with environmental goals. The government’s Renewable Energy Acceleration Act compels the industry to integrate renewable energy sources and implement efficiency measures, thereby facilitating the creation of more sustainable data centers. A key example of sustainability gaining momentum is the increasing number of industry leaders committing to long-term agreements to secure renewable energy.
- Digital Realty: In 2024, the company signed two 15-year Power Purchase Agreements (PPAs) for wind energy.
- Equinix: Secured a 20-year PPA for over 100MW of green energy.
These commitments underscore the growing transition toward eco-friendly data centers in France (Data Centre Dynamics, 2024) (Techerati, 2023).
Policy Regulation
The rapid growth of the French data center market is largely driven by stringent regulatory frameworks, including the General Data Protection Regulation (GDPR) and national legislation such as France’s Data Protection Act (Loi Informatique et Libertés) (Kiteworks, 2024) (Techerati, 2023).
As part of the European Union, France has been required to adhere to GDPR since its enforcement in May 2018. This comprehensive privacy and data protection law prompts significant investments in data localization infrastructure to comply with strict data protection and transfer regulations within the EU (Techerati, 2023) (CyrusOne, 2023).
Alongside GDPR, France’s own data protection law, the French Data Protection Act (FDPA), serves as a precursor to the EU regulation. First enacted in 1978, the FDPA provides a legal framework to protect personal data and ensure the privacy of French citizens (Kiteworks, 2024) (Securiti, 2022). Over the past decade, this regulation has gained increased significance as the volume of data traffic has surged exponentially due to technological advancements. Consequently, the need for local data storage has become critical, driving the expansion of data center projects nationwide.
To encourage the growth of sustainable data centers, France provides financial incentives, including partial or full exemptions from the Electricity Excise Tax for facilities that meet specific energy efficiency standards (SDIA, 2024). Furthermore, the Research Tax Credit (Crédit d’Impôt Recherche) supports innovation in the data center sector by reimbursing 30.0% of eligible R&D expenses, up to €100.0 Mn ($107.4 Mn), with a 5.0% rate for any amount exceeding this threshold (Sunbird, 2023) (PwC, 2024) (Techerati, 2023).
The R&D tax credit includes technical and scientific research operations in three areas: fundamental research, applied research, and experimental development. The qualifying expenses are the following:
- Depreciation of assets entirely or partially dedicated to R&D, including patents acquired.
- Researchers’ salaries, including a twofold increase in expenses for ‘young graduate doctors’ within the 24 months following their hiring under an open-ended contract by the company.
- Purchases of qualified subcontracted research towards public or private subcontractors in the European Economic Area, approved by the French Ministry of Research.
- Operating costs equaling 75.0% of R&D tax credit eligible depreciation and 43.0% of R&D tax credit and eligible researchers’ salaries (50.0% before FY20).
- Miscellaneous amounts, such as patents- related costs (filing, maintenance, and defense), standardisation, and technological monitoring.
- The subsidy amounts for R&D projects eligible for the R&D tax credit.
Moreover, the data center landscape began to shift significantly with the introduction of the Tertiary Decree, which mandates a gradual reduction in energy consumption. Originating from the Élan law, the Tertiary Decree, also known as the “tertiary eco-energy scheme,” was published in July 2019 and requires players in the tertiary sector1, including data centers, to progressively lower the energy usage of their buildings as part of the effort to combat climate change. This decree applies to all owners or tenants of buildings, parts of buildings, or complexes used for tertiary activities with a surface area of 1,000.0m² or more (APL Data Center, 2023) (APL Data Center, 2022) (Dametis, 2023). The decree outlines a set of requirements and implications that data center operators must comply with:
- Data center operators must report the energy consumption of their facilities to the Observatoire de la Performance Energétique de la Rénovation et des Actions du Tertiaire (OPERAT), the energy performance data platform overseen by the French Agency for Ecological Transition (Ademe).
- Failure to provide information to OPERAT or submit an action plan results in an administrative fine of €7,500.0 ($8,056.9) imposed on the responsible legal entities (APL Data Center, 2022).
- Operators must decrease energy consumption by at least 40.0% by 2030, 50.0% by 2040, and 60.0% by 2050.
With the expected rise in data center usage, operators will have the option to meet a target Power Usage Effectiveness (PUE) value instead of achieving absolute reductions in energy consumption.
Additionally, the Building Automation and Control Systems (BACS) Decree, which came into effect in July 2020, complements the Tertiary Decree by requiring advanced Building Management Systems (BMS) in commercial buildings with high power consumption. Buildings with consumption over 290.0kW must install BMS by January 1, 2025, and those over 70.0kW by January 1, 2027. The BACS Decree focuses on improving energy efficiency through cutting-edge technology, reducing energy waste and enhancing operational performance. Unlike the Tertiary Decree’s results-based targets, the BACS Decree mandates the implementation of these systems to achieve energy savings (Adeunis, 2024) (Akila, 2024).
Outlook
The French data center market serves as a key hub for European and transatlantic data traffic, supported by robust infrastructure, rising cloud service demand, and a strong emphasis on sustainability and energy efficiency. This solid foundation is driving significant growth, with revenue projected to increase from $11.8 Bn in 2024 to $15.4 Bn by 2029, reflecting a 5.6% CAGR. Key growth drivers include the expanding adoption of digital technologies, increasing data storage requirements, and continued infrastructure investments (Statista, 2024).
Central to this expansion lies the Paris data center market, which serves as the primary hub for data center activity in France. The demand in Paris is particularly strong, fueled not only by the widespread adoption of AI and cloud computing but also by local needs from diverse sectors such as pharmaceuticals and digital media. As the demand for data centers continues to rise, so do the challenges. The surge in demand has led to increasing occupancy rates, with the vacancy rate in Paris dropping to just 4.0% in the second half of 2023, down from 5.3% in the first half of 2023. Demand, pricing and construction costs are rising due to record levels of data center capacity being delivered to meet the growing requirements of hyperscalers. Securing land and power for new developments is increasingly difficult (DataX Connect, 2024) (CBRE, 2024) (Cushman & Wakefield, 2024). These challenges have prompted many data center operators to pivot their focus toward secondary markets, such as Lille, Marseille, Lyon, and Nantes, where opportunities for growth remain viable.
The French data center market is set for a surge in investments, particularly from hyperscale providers, as France’s emphasis on cloud sovereignty and data protection aligns with their strategic interests. This enables companies to strengthen their presence in the European market while ensuring compliance with local regulations. Further, these investments directly support France’s National AI Strategy and align with the French Commission for Artificial Intelligence’s recommendations to position France as a leader in AI development and application. Noteworthy examples include Microsoft and Amazon, which plan to invest €4.0 Bn ($4.3 Bn) and €1.2 Bn ($1.3 Bn), respectively, in building data center infrastructure in France (Data Centre Dynamics, 2024). These substantial investments underscore the country’s growing importance as a hub for data center operations (Data Centre Dynamics, 2024).
Additionally, the French government’s strong focus on sustainability is driving the development of green data centers. Major corporations are increasingly prioritising the construction of energy-efficient facilities that derive a significant portion of their power from renewable energy sources. This commitment to environmental responsibility is accelerating the evolution of the French data center market toward more sustainable and innovative solutions.
Overall, as the global data center market becomes more competitive, France stands at the crossroads of opportunity and innovation, uniquely positioned to lead the way in sustainable infrastructure and technological advancement.