Europe data center colocation market size to reach USD 8.21 billion by 2026, growing at a CAGR of 5.61% during the forecast period.
The Europe data center colocation market is expected to grow at a CAGR of over 5.61% during the period 2020−2026.
Key Highlights Offered in the Report:
1. In 2020, the total number of colocation projects opened and under construction in Europe stood at over 100, with Western Europe contributing to around 70% of the projects.
2. The availability of tax incentives in many European countries is one of the main factors fueling the growth of data centers, with most tax incentives based on economic development. Incentives focused on effective data center operations and renewable energy procurement will increase in the coming years.
3. Data localization regulations in Europe such as the General Data Protection Regulation (GDPR), the Federal Act on Data Protection (FADP), the Danish Data Protection Act, and the Russian Federal Law on Personal Data are some such regulations that have led to an increase in data center demand to store data locally.
4. The rising data center demand in Europe has prompted data center suppliers to sign M&A and joint ventures to expand their portfolios. For instance, Equinix partnered with GIC, a Singapore-based sovereign wealth fund, to invest USD 1 billion in the development of xScale data centers across Europe. The Europe market also witnessed the merger of Interxion and Digital Realty in 2020.
5. Several new data center investors, namely, AQ Compute, Echelon Data Centres, Global Technical Realty, and Stratus DC Management, have announced multiple hyperscale investments in Europe thus aiding market growth for hyperscale colocation data centers.
6. District heating is prominent in the Nordics and Western Europe, with over 90% of the buildings in Finland connected through district heating, and over 25,000 apartments in Sweden heated using district heating.
7. According to the Climate Neutral Data Center Pact signed by 25 data center operators and 17 industry associations, 75% of the power supplied to data centers in Europe will be renewable or carbon-free energy by December 31, 2025, and the objective is to reach 100% by December 31, 2030.
• Market Size & Forecast by Revenue | 2020−2026
• Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
• Market Segmentation – A detailed analysis by infrastructure, electrical infrastructure, mechanical infrastructure, cooling systems, general construction, service type, tier standards, and geography
• Competitive Landscape – 11 key vendors, 28 other vendors, and 4 new entrants
Europe Data Center Colocation – Segmentation
• To overcome the challenges of VRLA batteries, vendors are introducing lithium-ion UPS solutions, Nickel Zinc, and Prussian Blue Sodium-ion batteries. In 2020, the adoption of lithium-ion UPS systems grew considerably. UPS systems were the highest contributors to market investments by adopting VRLA battery-powered systems in power infrastructure.
• VRLA battery-powered UPS systems are most widely used in the data center environment and other industrial applications. The contribution from colocation providers will be high in lithium-ion UPS solutions. Vendors are continuously innovating with UPS solutions to boost efficiency and reduce cost.
• Data center operators are looking for efficient solutions to reduce their CAPEX and OPEX, conserve data center space, and reduce the power consumption of cooling units. Europe experiences colder climatic conditions and will continue to use indirect evaporative coolers and air/water-side economizers.
Europe Data Center Colocation by Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction
Europe Data Center Colocation by Electrical Infrastructure
• UPS System
• Transfer Switches & Switchgears
• Other Electrical Infrastructure
Europe Data Center Colocation by Mechanical Infrastructure
• Cooling Systems
• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers, and Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units
• Other Mechanical Infrastructure
• Cooling Technique
• Air-Based Cooling Technique
• Liquid-Based Cooling Technique
Europe Data Center Colocation by General Construction
• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Physical Security
Europe Data Center Colocation by Service Type
• Retail Colocation
• Wholesale Colocation
Europe Data Center Colocation – Dynamics
The construction of data centers continues to grow at a substantial pace as leading data center service providers invest more than USD 1 billion in new developments and expansions. The rising demand across industries has prompted data center suppliers to sign M&A contracts to expand their portfolios. Additionally, the data center market encourages acquisitions of data centers by real estate and investment firms. This acquisition is followed by expansion, leading to strong market growth. A few of the investments will be focused on developing the data center market, with unexpected demand from current and new clients in data centers. Also, the Western Europe and Nordics data center markets are witnessing increasing investments from operators through joint ventures. For instance, Equinix partnered with GIC, a Singapore-based sovereign wealth fund, to invest USD 1 billion in the development of xScale data centers across Europe in October 2019.
Key Drivers and Trends fueling Market Growth:
• Rising Adoption of Renewable Energy by Colocation Providers
• Growing Procurement of Innovative UPS Batteries
• Increase in Cloud Connectivity
• Increasing Demand for Big Data & IoT Solutions
Europe Data Center Colocation – Geography
In 2020, the Western European colocation data center market witnessed investments in over 70 projects. The data center colocation market in Western Europe is witnessing investment contributions from both global and colocation service providers. The market will also witness the continuous adoption of cloud services among SMEs due to the heightened interest shown for the digital transformation of businesses through solutions such as IoT, big data, and artificial intelligence. The demand for smart devices, coupled with growing internet penetration, will also fuel the growth of colocation data centers and corresponding infrastructure in the region. Data centers in Western Europe are being built to support OCP rack infrastructure solutions. This is aided by the growth of ODM solutions in the market.
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Europe Data Center Colocation by Geography
• Western Europe
• Other Western European Countries
• Nordic Region
• Finland & Iceland
• Central & Eastern Europe
• Russia & Czech Republic
• Poland & Austria
• Other Central &Eastern European Countries
• Colt Data Centre Services
• Digital Realty
• Global Switch
• Green Mountain
• NTT Global Data Centers
• QTS Realty Trust
• Virtus Data Centres (ST Telemedia Global Data Centres)
Other Prominent Data Center Colocation Providers
• Bulk Infrastructure Group
• China Mobile International
• Euclyde Data Centers
• Hydro66 Holdings
• Iron Mountain
• Keppel Data Centres
• maincubes One
• NDC-GARBE Data Centers Europe
• noris network
• Penta Infra
• Scaleway Datacenter
• Telecom Italia Sparkle
• T5 Data Centers
• Vantage Data Centers
New Entrants in Europe Colocation Market
• AQ Compute
• Echelon Data Centres
• Global Technical Realty
• Stratus DC Management
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