Swiss real estate market

24 July 2026, 17:19 UTC Chief Investment Office GWM Investment Research

Data centers: Structural excess demand expected Swiss real estate market Author: Maciej Skoczek, CFA, CAIA, Economist, UBS Switzerland AG

• The supply of data center capacity in Switzerland has grown significantly in recent years, and the Zurich region has established itself as the most important location in this regard.

• In the coming years, demand for data centers is likely to exceed new supply, a trend driven by the increasing migration of IT infrastructures to the cloud, the growth of AI-powered applications, and Switzerland's strong attractiveness internationally as a business location. Source: Shutterstock • Investors are likely to benefit from robust performance, provided that the technical infrastructure of the facilities is continuously modernized. Additional regulatory requirements, meanwhile, could weigh on returns.

The data center market in Switzerland has posted strong Data centers experiencing strong growth growth in recent years. According to the real estate services Estimated capacities of commercial data centers by region** (in MW) firm CBRE, the capacity of commercial data centers that and the number of data centers in Switzerland (right-hand scale) provide computing services to third parties has more than doubled between 2020 and 2026 and currently stands at around 340 MW.

Energy consumption figures also point to significant growth in the data center market: the Swiss Federal Office of Energy estimates that data centers consumed approximately 2.1 TWh of electricity in 2024, almost 20% more than in 2020. By comparison, the city of Zurich recorded electricity consumption of approximately 2.7 TWh in 2024.

High demand for computing power This major expansion of capacity is a response to rising Source: CBRE, UBS; *2030: forecast according to CBRE. **The Zurich region includes the cantons of Zurich, Aargau and Schaffhausen. demand for computing power in Switzerland. Many companies have moved their IT infrastructure from on- site server rooms to the cloud, and the growing use of AI-powered services and applications has further boosted demand in recent quarters.

This report has been prepared by UBS Switzerland AG. Please see important disclaimers and disclosures at the end of the document.

Switzerland is also an attractive location to meet foreign In Western Switzerland, investments are concentrated demand for computing power. Swiss data centers benefit primarily in the canton of Vaud (approximately CHF 300 from political and economic stability, the ongoing expansion million since 2020). Nevertheless, this region (comprising the of the fiber-optic infrastructure, and a low risk of natural cantons of Geneva and Vaud) accounts for less than 20% disasters. Furthermore, an independent data protection of Switzerland's data center capacity. regime enhances the location's appeal in an international context. Excess demand expected CBRE expects strong growth in demand in the coming The Zurich region dominates years, largely driven by the increasing use of AI. According to CBRE, the Zurich region (the cantons of Zurich, International technology companies such as Google, Aargau and Schaffhausen) accounts for about 60% of Amazon and Microsoft plan to further expand their existing capacity, a percentage that has risen significantly presence in Switzerland, while demand from domestic in recent years. Since 2020, building permits have been companies—particularly those in the financial, insurance issued in the canton of Zurich for investments in data centers and pharmaceutical sectors—is also expected to rise. The totaling an estimated CHF 730 million. Added to this, the extent to which demand will grow depends largely on the total in the canton of Aargau is over CHF 600 million, with momentum for expanding AI-supported processes. Schaffhausen’s total around CHF 90 million. According to CBRE, the installed capacity of data centers The Zurich region boasts high-quality electricity and network in Switzerland is also expected to grow to just under 630 infrastructure, even if new connections are not always MW by 2030, an increase of 85% compared to the first half…