First Read: Merlin Properties "Expert session on European data center..."

Research evidence excerpt

First Read: Merlin Properties "Expert session on European data center..."

Global Research

3 July 2026ab

First Read

EquitiesMerlin Properties

Expert session on European data center market Spain

outlook - Takeaways Real Estate

12-month rating Buy

12m price target €16.90

Strong demand meets grid constraints

We hosted a session on the European data center market outlook. Our speaker was the

Head of Data Centres Capital Markets EMEA at a leading brokerage firm. Topics covered Price (03 Jul 2026) €15.39

ranged from the data center transaction market, fundamentals across FLAP-D and RIC: MRL.MC BBG: MRL SM

secondary markets, hyperscalers' expansion plans and dynamics in the Iberian peninsula

Trading data and key metrics

given its relevance for our coverage of Merlin. Our main takeaway is that the sector is

entering a new phase, where AI workload becomes the primary demand driver of data 52-wk range €15.75-11.00

center, growing at 3.5x its 2025 level by 2030 when AI workload should account for Market cap. €8.68b/US$9.94b

71% of total demand (vs. 54% currently). While hyperscalers paused or reassessed Shares o/s 564m (ORD)

spending plans during 2025, which temporarily affected rental conditions, our expert Free float 81%

noted that activity has reaccelerated in 2026, with operators once again looking to Avg. daily volume ('000) 1,141

deploy capital aggressively. Replay, slides and detailed notes are available upon request. Avg. daily value (m) €17.2

Common s/h equity (12/26E) €9.99b

Power, not demand, is increasingly the constraint P/BV (12/26E) 0.9x

Hyperscalers evaluate Europe as a single market increasingly prioritising sites that offer

EPS (UBS, diluted) (EUR)

delivery certainty. This is why they tend to commit to a site only 12 to 18 months before

UBS Cons.