Rising investments in artificial intelligence infrastructure are fueling a surge in demand for data-center-backed bonds across Europe, with major hubs like Frankfurt, London, Amsterdam, Paris, and Dublin seeing heightened activity. The trend reflects growing capital deployment into digital infrastructure aligned with AI expansion.
- €18 billion in data-center-backed bonds issued in Europe during H1 2025
- Frankfurt hosts 38% of Europe’s colocation capacity, leading regional concentration
- AI-related data traffic expected to grow 45% annually through 2030
- 68% of Tier-1 European data center space occupied by major cloud providers
- 92% of new bond issues rated investment-grade or higher
- Four of top five data center hubs located in Germany, UK, Netherlands, France, and Ireland
European financial markets have witnessed a notable uptick in issuance of data-center-backed bonds as companies and investors position themselves for the continent’s accelerating AI expansion. Key technology firms and real estate investment trusts (REITs) are increasingly leveraging these instruments to finance the construction and upgrade of high-capacity facilities in strategic locations including Frankfurt, where over 20 new data centers were announced in 2025 alone. The demand is driven by projected data volume increases: global AI-related data traffic is expected to grow by 45% annually through 2030, according to internal industry forecasts. In response, bond issuers have tapped the market with €18 billion in dedicated data-center asset-backed securities in the first half of 2025—up 70% year-on-year. Frankfurt remains the largest hub, hosting nearly 38% of Europe’s colocation capacity, followed by London (22%), Amsterdam (18%), Paris (12%), and Dublin (10%). Investors are drawn to these bonds due to their stable cash flows tied to long-term leases with tech giants such as Microsoft, Amazon Web Services, and Google Cloud, which now occupy 68% of total available space in Tier-1 European data centers. Ratings agencies have noted improved credit profiles, with 92% of recent bond issues rated investment-grade or higher. The trend is also attracting pension funds and sovereign wealth vehicles seeking inflation-resistant, infrastructure-linked yields. Market participants anticipate continued momentum, particularly as EU regulatory frameworks under the Digital Markets Act and AI Act create a more predictable environment for long-term digital infrastructure investments. The rise in data-center-backed debt is reshaping capital allocation patterns, directing liquidity toward physical assets that power next-generation technologies.