Europe Data Center Market Report 2021-2026: Increasing Demand for High-Density, Mission-Critical Servers, Storage, and Network Infrastructure

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Mar 31, 2021, 09:45 ET

DUBLIN, March 31, 2021 /PRNewswire/ -- The "Data Center Market in Europe - Industry Outlook and Forecast 2021-2026" report has been added to ResearchAndMarkets.com's offering.

The Europe data center market by investment is expected to grow at a CAGR of over 4% during the period 2021-2026.

The market is expected to grow due to the growing procurement of renewable energy sources. Over 25 European cloud and data center operators, including AWS, Google, Equinix, Interxion, OVH Cloud, Scaleway, Aruba, and 17 other industry associations have signed an agreement to make their facilities carbon neutral via 100% renewable energy sources by 2030.

According to the Climate Neutral Data Centre Pact, 75% of the power supplied to data centers in Europe will be supplied through renewable energy or carbon-free energy by December 31, 2025, and the objective is to reach 100% by December 31, 2030. This announcement is likely to offer a high impetus to the growth of the data center market in Europe. Hyperscale data center providers are the major investors in renewable energy initiatives.

Germany intends renewable resources to constitute at least 35% of the gross electricity consumption. Ireland aimed to generate 16% of its energy through renewable energy sources in 2020, which is expected to reach 55% by 2030. Norway is the leading country in the production of renewable energy sources, followed by Sweden and Finland. Iceland continues to produce 100% of electricity through renewable sources.

Europe Data Center Market Segmentation

The Europe data center market research report includes a detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling technique, general construction, tier standards, geography. Enterprises are shifting to high-performance and capacity-intensive infrastructure. The high consumption of internet-based services is expected to drive the IT infrastructure market. The COVID-19 pandemic fueled infrastructure adoption among internet-related service providers in Q1 and Q2 2020. Hyperscale operators procured ODM infrastructure, which grew by over 10% across Europe in 2020.

UPS systems are the highest contributors to market investment. In 2020, the adoption of lithium-ion UPS systems grew considerably. Most data centers operating in Europe are adopting N+N redundant infrastructure. The adoption of generator systems with a capacity of over 2 MW is high due to the increased construction of large and hyperscale facilities. Data center operators have adopted innovative and energy-efficient cooling infrastructure solutions, aiming to reduce power consumption by up to 50%. This is expected to grow during the forecast period as market vendors are introducing innovative high-efficient cooling systems.

The server infrastructure market has witnessed strong growth over the last two years. Server systems based on x86 architecture dominated the Europe data center market share with over 85% in 2020. Most modern operators adopt the server infrastructure that matches workload requirements. The demand for servers suitable for cloud environments is likely to grow during the forecast period. In 2020, the increased adoption of all-flash storage arrays along with sizable contribution from hybrid storage arrays is expected to aid storage systems.

The growth of flash storage systems is boosted by high-performance operations that require strong input/output capabilities. The increase in bandwidth requirements, data center consolidation, and virtualization are some major factors driving the demand for ethernet port switches, controllers, and adaptors. 25/50 GbE switches are likely to experience considerable growth during the forecast period.

Several facilities have adopted flexible designs to facilitate the installation of dual power feeds, 2N redundant UPS and PDU systems, and N+1 generators. The market share of metered and monitored rack PDU solutions has observed a remarkable increase in Western Europe. In the Nordic region, the deployment of hyperscale facilities is likely to fuel the procurement of 48V DC UPS systems. Most facilities in the region are powered by renewable energy with grid stability of over 95%.

This reduces the number of redundant generator systems, encouraging 2N UPS system installation. A majority of data centers in central and eastern Europe are designed as Tier III standards with a minimum of N+1 redundancy in UPS and generator systems. The use of renewable energy sources to power data centers is low in the region. However, their utilization is expected to grow during the forecast period.

Several data centers in Western Europe support free cooling systems, which include adiabatic coolers, evaporative coolers, and free cooling chiller systems. The use of water-based cooling techniques includes water-treatment plants and systems. Most data center operators procure 45U-52U rack cabinets. However, the procurement of 42U racks is declining in the Europe data center market.

Western Europe is the most active market for data center construction across the European region. The increase in demand for cloud computing and other related services has offered several revenue opportunities for multiple and sub-contractors in the market. Many facilities are being designed and built to cover an area of over 100,000 square feet. Several major data center construction in the region is managed by Europe-based construction service providers. However, the non-availability of a skilled workforce to manage multiple hyperscale projects is the major challenge for several contractors in the region.

According to the Uptime Institute, Europe has around 217 certified data centers spread over 29 countries, which include local and global facilities. A majority of them are in the UK, Russia, Spain, Lithuania, Luxembourg, Italy, and France. Europe has higher Tier III certified facilities than Tier IV and Tier II. Around 163 facilities in Europe are Tier III certified. Russia, the UK, Spain, Italy, and Lithuania have the highest number of certified data centers.

Insights by Vendors

The Europe data center market consists of several IT, electrical, and mechanical infrastructure providers. Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, and Extreme Networks some major IT infrastructure providers. With the increasing demand for high-density, mission-critical servers, storage, and network infrastructure, the IT infrastructure market is likely to witness growth.

The server market has witnessed significant growth in revenue contribution from ODM server manufacturers. The electrical infrastructure market has become highly competitive owing to the increased interest shown by operators in procuring energy-efficient infrastructure solutions. ABB, Eaton, Schneider Electric, and Vertiv are the major power infrastructure players.

The following factors are likely to contribute to the growth of the Europe data center market during the forecast period:

Procurement of Renewable Energy Sources
Introduction of Innovative UPS Battery Technology
Adoption of District Heating by Data Centers
Cloud Adoption driving Data Center Market

Market Dynamics

Market Opportunities & Trends

5G To Boost Edge Data Center Investments
Growing Procurement Of Renewable Energy
Innovative Ups Battery Technology
Adoption Of District Heating By Data Centers
Increased Adoption Of 200/400 GBE Switch Ports

Market Enablers

COVID-19 Enhances Data Center Demand
Cloud Adoption Drives Data Center Market
Increasing Demand For Big Data & IoT Investments
Rise In Colocation Investments
M&As to Fuel Data Center Growth
Tax Incentives Increase Data Center Investments
Data Regulations Increase Cloud & Colocation Data Center Investments

Market Restraints

Increased Power & Network Outages
Security Challenges In Data Centers
Lack Of Skilled Workforce
Rising Carbon Emissions From Data Centers
Location Constraints For Data Center Construction

Key Data Center Critical (IT) Infrastructure Providers

Arista Networks
Atos
Broadcom
Cisco Systems
Dell Technologies
Extreme Networks
Huawei Technologies
Hewlett Packard Enterprise (HPE)
Hitachi Vantara
IBM
Inspur
Inventec
Juniper Networks
Lenovo
MiTAC Holdings
NEC Corporation
NetApp
Oracle
Pure Storage
Quanta Computer (Quanta Cloud Technology)
Super Micro Computer
Wistron (Wiwynn)

Key Data Center Support Infrastructure Providers

ABB
Airedale International Air Conditioning
Asetek
Alfa Laval
Assa Abloy
Bosch Security Systems (Robert Bosch)
Caterpillar
Cummins
Delta Electronics
Eaton
HITEC Power Protection
KOHLER-SDMO
Legrand
Mitsubishi Electric Corporation
Nlyte Software
Piller Power Systems
Rolls-Royce Power Systems
Rittal
Riello Elettronica (Riello UPS)
Schneider Electric
STULZ
Socomec
Trane Technologies (Ingersoll Rand)
Vertiv Group

Key Data Center Contractors

AECOM
Arup Group
Bouygues Construction
CapIngelec
DPR Construction
Deerns
Fluor Corporation
Future-Tech
HDR Architecture
ISG
Jones Engineering Group
Kirby Group Engineering
Linesight
Mercury Engineering
Mace Group
M+W Group (Exyte)
Metnor Construction
RED-Engineering
Structure Tone
Winthrop Engineering and Contracting

Key Data Center Investors

3data
Aruba SpA
AzInTelecom
Bahnhof
CyrusOne
Colt Data Center Services (Colt DCS)
Digital Realty
DigiPlex
DataPro
DATA4 Smart Data Centers
Equinix
Echelon Data Centers
EcoDataCenter
Facebook
Google
Global Switch
GlobalConnect
Green Mountain
Iron Mountain (IO)
Microsoft
NTT Global Data Centers
QTS Realty Trust
VIRTUS Data Centres
Telecom Italia Sparkle
T5 Data Centers
Vantage Data Centers

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

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