For many years, data centre location decisions in Europe were guided by a relatively simple logic. Capacity followed connectivity, enterprise density and interconnection ecosystems. That logic concentrated development in a small number of metropolitan markets and shaped how facilities were designed, delivered and operated.
That model is now evolving. Demand continues to grow, driven by cloud adoption, AI workloads and the digitalisation of industry and public services. But the bigger change lies in how operators are thinking about longevity. The question is no longer only where capacity can be deployed quickly, but where it can be sustained, expanded and operated reliably over long time horizons.
This shift has brought tier two locations into sharper focus. In this context, tier two refers to regional cities and corridors outside the most constrained metropolitan centres. These locations are not replacing core markets, but they are increasingly shaping how new capacity is planned and managed over time.
Planning beyond initial delivery
One of the most significant differences between development in traditional hubs and tier two locations is the planning horizon. In dense urban markets, facilities have often been designed to fit within tight spatial, power and regulatory constraints. Expansion has typically been incremental, responding to short-term availability rather than long-term intent.
Tier two locations allow for a different approach. Larger sites make it possible to plan development across multiple phases from the outset. Instead of designing for immediate delivery alone, operators can define how a site will grow, how infrastructure will scale, and how operations will evolve over a decade or more.
This has implications for everything from site layout and power routing to maintenance strategy and operational resilience. Early decisions carry greater weight because they shape not just the first facility, but the entire lifecycle of the campus.
Power as a long-term operational consideration
Power availability is central to this shift, but the issue extends beyond securing an initial grid connection. What matters increasingly is how power can be governed over time. That includes the ability to add capacity in defined phases, accommodate higher baseline loads, and adapt to changing workload profiles.
AI and high-performance computing have reinforced this focus. Sustained, predictable demand places continuous pressure on electrical systems, increasing the importance of stability and foresight. In many tier two locations, physical space and grid planning structures make it easier to design power infrastructure that supports these requirements without constant reconfiguration.
From an operational perspective, this reduces complexity. Systems designed for expansion from the outset are easier to manage, test and maintain than those repeatedly retrofitted under constraint.
Designing for operational continuity
Another characteristic of tier two development is the opportunity to design for operational continuity rather than short-term optimisation. Campus-style sites allow infrastructure systems to be standardised across multiple buildings, supporting consistent operational practices.
This consistency matters as sites scale. Maintenance regimes, spares strategies and resilience testing become more straightforward when systems follow a coherent design philosophy. For operators managing multiple phases or buildings, this reduces risk and improves predictability.
In contrast, facilities developed under tight urban constraints often reflect the limitations of their environment. While they can perform exceptionally well, they may require more bespoke operational approaches as they evolve.
Cooling, efficiency and future adaptation
Cooling strategies are also influenced by location. Tier two sites often provide greater flexibility to deploy and evolve cooling architectures as efficiency requirements change. Space for plant, redundancy and future upgrades can be incorporated into early designs, rather than added later.
As regulatory and sustainability expectations continue to evolve, this flexibility becomes increasingly valuable. Facilities that can adapt without significant disruption are better positioned to meet new efficiency standards and reporting requirements over time. The advantage is not necessarily new technology, but the ability to integrate systems coherently and adjust them as operational priorities shift.
Connectivity as part of a broader system
Connectivity remains essential, but it is no longer the dominant constraint it once was. Improvements in fibre networks and sub-sea connectivity have expanded the range of locations capable of supporting latency-sensitive workloads.
For tier two locations, this means connectivity can be treated as part of a broader system rather than the primary driver of location choice. Once baseline connectivity requirements are met, other factors such as power governance, operational flexibility and expansion potential can take precedence.
This rebalancing has widened the pool of viable locations and allowed operators to prioritise long-term operational performance over proximity to legacy interconnection hubs.
Building resilience through diversity
There is also a resilience dimension to this shift. Relying heavily on a small number of locations concentrates operational risk. Distributing capacity across a broader geography can improve resilience, provided systems and processes remain consistent.
Tier two locations contribute to this balance by offering environments where capacity can be planned deliberately rather than reactively. They support diversification without sacrificing operational control, enabling operators to manage growth across multiple sites with greater confidence.
A change in how success is measured
Ultimately, the growing role of tier two locations reflects a change in how success is measured in the data centre sector. Speed to market remains important, but it is no longer sufficient on its own. Longevity, adaptability and operational stability are becoming equally critical metrics.
Tier two locations align closely with these priorities. They support long-term planning, coherent infrastructure design and sustained operations at scale. As a result, they are increasingly shaping how Europe’s next generation of data centres is conceived, built and run.
This is not a rejection of established markets, but an evolution in thinking. As the sector matures, the ability to plan for decades rather than years is becoming a defining capability. Tier two locations are central to that shift.
