Dynamic Competition Shapes the European Data Center Colocation Market: Key Players and Investment Trends Unveiled

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Oct 25, 2023, 11:53 ET

DUBLIN, Oct. 25, 2023 /PRNewswire/ -- The "Europe Data Center Colocation Market - Industry Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The European data center colocation market is on a path of significant expansion, with projections reaching a remarkable USD 9.98 billion by 2028, up from $6.9 billion in 2022, boasting a substantial CAGR of 6.3%. Several key trends and drivers are propelling this growth in the market.

KEY HIGHLIGHTS

The implementation of GDPR has led to increased adoption of cloud-based services for data localization, contributing to the growth of data center projects.
Despite Brexit's notable implications for data centers in Western Europe, operators continue to expand infrastructure across the continent, with the region making the maximum investments in 2022, accounting for 83% of the European market share.
In terms of colocation revenue, the UK leads with a market share of over USD 2.6 billion generated in 2022, followed by the Netherlands and Germany. This surge in demand is due to the construction of new data centers and the expansion of existing facilities.
Favorable policies make the Nordics an attractive hub for investments in the European colocation data center market.

Segmentation by Colocation Type

Retail Colocation
Wholesale Colocation

Segmentation by Infrastructure

Electrical Infrastructure
Mechanical Infrastructure
General Construction

Segmentation by Electrical Infrastructure

UPS Systems
Generators
Transfer Switches & Switchgear
PDUs
Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

Cooling Systems
Racks
Other Mechanical Infrastructure

Segmentation by Cooling Systems

CRAC & CRAH Units
Chiller Units
Cooling Towers, Condensers & Dry Coolers
Economizers & Evaporative Coolers
Other Cooling Units

Segmentation by Cooling Technique

Air-based Cooling Technique
Liquid-Based Cooling Technique

Segmentation by General Construction

Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Fire Detection & Suppression
Physical Security
DCIM/BMS Solutions

Segmentation by Tier Standard

Tier I & Tier II
Tier III
Tier IV

Segmentation by Region

Western Europe
Nordic
Central & Eastern European Countries

KEY TRENDS

Adoption of Artificial Intelligence

The rapid adoption of Artificial Intelligence (AI) in Europe is driving economic growth through data generation and tech markets.
Major companies like Bosch and Airbus are embracing AI for tasks like automation and pattern recognition, showcasing its potential.
European governments are proactively supporting AI adoption, with various countries launching initiatives to foster AI development.

Rise in Sustainability Initiatives

Prominent European data centers, including Equinix, Interxion, and DigiPlex, are setting a renewable energy precedent by committing to powering facilities with 100% renewable energy.
European countries are actively participating in the European climate pact, targeting carbon neutrality by 2050.

Adoption of Cloud-Based Services

The adoption of cloud-based services is a significant driver behind the growth of data center investments in Europe.
Cloud adoption has led to increased demand for data storage, scalability, compliance adherence, performance optimization, and hybrid/multi-cloud strategies.
Governments across Europe are actively supporting data center development through incentives such as low corporate tax rates and withholding tax exemptions.

COMPETITIVE ANALYSIS

The European data center colocation market is characterized by dynamic competition among global and local operators. Countries with tax incentives, proper connectivity, favorable climates, and renewable energy sources are attractive to operators.

Prominent Colocation Investors

3data
3S Group
AQ Compute
Artnet
Aruba
AtlasEdge
atNorth
Bahnhof
Beyond.pl
China Mobile
ClusterPower
Colt Data Centre Services
CyrusOne
DigiPlex (IPI Partners)
Digital Realty
DATA4
Echelon Data Centres
EcoDataCenter
EdgeConneX
Equinix
Global Switch
Iron Mountain
Green Mountain
IXcellerate
KDDI
Liberty Global
Magenta Telekom (MTS)
Neterra
Netia
Nautilus Data Technologies
NDC-GARBE Data Centers Europe
NTT Global Data Centers
nLighten
NTT Global Data Centers
Orange Business Services
Proximity Data Centres
Pure Data Centres
Rostelecom Data Centers
Stadtwerke Feldkirch
Stratus DC Management
Global Technical Realty
T5 Data Centers
Telecom Italia Sparkle
Vantage Data Centers
Verne Global
VIRTUS Data Centres (ST Telemedia Global Data Centres)
VK Cloud Solutions
Yandex
Yondr

KEY QUESTIONS ANSWERED

How big is the European data center colocation market?
What is the growth rate of the Europe data center colocation market?
What is the estimated market size in terms of area in the Europe data center colocation market by 2028?
What are the key trends in the Europe data center colocation market?
How many MW of power capacity is expected to reach the Europe data center colocation market by 2028?

For more information about this report visit https://www.researchandmarkets.com/r/vdt9kv

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