Europe Data Center Market Size
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 12.23 Thousand MW |
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Market Volume (2029) | 17.93 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 7.96 % |
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Largest Share by Country | United Kingdom |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Europe Data Center Market Analysis
The Europe Data Center Market size is estimated at 12.23 thousand MW in 2024, and is expected to reach 17.93 thousand MW by 2029, growing at a CAGR of 7.96%. Further, the market is expected to generate colocation revenue of USD 35,462.1 Million in 2024 and is projected to reach USD 58,317.8 Million by 2029, growing at a CAGR of 10.46% during the forecast period (2024-2029).
USD 35,462.11 Million
Market Size in 2024
USD 57,732.9 Million
Market Size in 2029
12.8%
CAGR (2017-2023)
10.2%
CAGR (2024-2029)
IT Load Capacity
12,229.5 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to achieve 17,933.09 MW by 2029. The ongoing trend of OTT services is increasing the need of data storage in European countries.
Total Raised Floor Space
Sq. Ft. 60.3 M
Volume, Raised Floor Space, 2024
In Europe, the utilization rate expected to grow by 6% during the study period. Private equity funds are promoting new data center projects across the region, attracted to under-served markets, including Poland, Spain, Portugal, and Italy.
Installed Racks
3,014,822
Volume, Installed Racks, 2024
The increasing demand for hyperscale colocation is encouraging the providers to construct more facilities. Equinix Inc. hold second position after Digital Realty and are focused on constructing hyperscale facilities in the region.
# of DC Operators & DC Facilities
421 and 1,238
Volume, DC Facilities, 2024
There are 1,159 colocation data center facilities in Europe. The UK holds the highest market share in the region, and the increasing adoption of the cloud by most businesses boosting the number of DC facilities in the region.
Leading Market Player
10.1%
Market Share, Digital Realty Trust, Inc. , Inc.
Digital Realty Trust Inc. has the highest market share of 10.1% in the data center market. The company currently operates at an IT load capacity of 1017.82 MW and is expected to increase its capacity during the forecast period.
Tier 3 data center accounted for majority share in terms of volume in 2023, and is expected to dominate through out the forecasted period
- The tier 3 segment currently has a majority of share in the European region due to the major advantage of its features. These tiers have a high redundancy level and multiple paths for power and cooling. These data centers have an uptime of around 99.982%, translating into a downtime of 1.6 hours per year. The increasing adoption of edge and cloud connectivity is expected to boost the segment's growth.
- The United Kingdom hosts the maximum number of tier 3 data centers in the country, with Slough and Greater London holding a major share. The other major locations are France, Germany, Ireland, and other countries. Dublin is the only region that hosts more than 98% of the tier 3 data center facilities in Ireland, with North and South Dublin holding a major share. The tier 3 segment is expected to grow from 7,979.69 MW in 2023 to 12,110.18 MW in 2029, with a CAGR of 7.20%.
- The tier 4 segment is expected to record the highest CAGR of 15.51% during the forecast period. Various developed countries are focusing on adopting Tier 4 certifications to get the advantage of complete fault tolerance and redundancy for every component. Thus, even the developing regions are adopting the tier 4 zone. For instance, the tier 2 metro markets, outside the traditional FLAP markets, are set to see the fastest capacity growth from a low initial starting point. In particular, the Barcelona, Milan, and Rome metro markets are expected to triple the amount of data center power over the next four years.
- Tier 1 & 2 types showcase the least majority growth as more than 70% of all traffic today moves from server to server. Modern applications require significantly more data to travel within a data center at faster speeds and are more particular about latency.
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Adoption of digitization in FLAP-D metro markets (including Frankfurt, London/Slough, Amsterdam, Paris, and Dublin) increases the market demand
- The largest data center markets are covered by FLAP-D metro markets (including Frankfurt, London/Slough, Amsterdam, Paris, and Dublin). With the increasing adoption of digital services and power management, these countries are expanding their colocation facilities. In August 2022, the Greater London Authority announced plans to change the application process for data center development to tackle and ease the West London power crisis with better electricity management regulations.
- The land price in London is around USD 150 per sq. ft. The higher land cost in London is expected to shift investments to other cities in the industry with lower land prices. For instance, Amsterdam has a lower land price for building facilities in the FLAP-D data center market, which is USD 38 per sq. ft. The Spanish market has many third-party DC projects under construction, with facilities being developed in Madrid and Barcelona.
- In terms of renewable energy, in the FLAP-D market, renewable energy is majorly produced from solar, wind, hydroelectricity, marine and wave energy, and bioenergy. For instance, in April 2022, the French government announced a strategy for renewable energy innovation projects as per its 2030 national investment plan, with an investment of over USD 1 billion.
- As the FLAP-D data center hubs observe a lack of land availability and skilled workforce, they are under threat from emerging regions. Countries like Italy, Poland, Belgium, and Sweden are expected to showcase growth in the future. Sweden's data center market is one of the most connected locations in the Nordic region regarding subsea cable connectivity. The country has adopted the district heating concept for data centers.
Europe Data Center Market Trends
Increasing usage of OTT subscriptions and mobile gaming along with social media penetration increases the data center market
- By 2025, smartphones are expected to account for nearly 85% of connections in Europe. Western Europe is home to some of the world’s biggest consumers of mobile data, while Central and Eastern Europe lag behind the global average. In 2021, in Western European, the traffic from mobile devices reached 4,189,615 terabytes per month. The growing average data volume due to rising OTT subscriptions for smartphones and mobile gaming is further driving the demand for data processing and storage facilities for live-streaming games and video content. The Danish market saw an 11.8% growth in total consumer spending on video in 2021 compared to 2020. The Danish video market represented a value of more than DKK 4,591 million (EUR 607.8 million) in 2021.
- The ongoing trend of OTT services is increasing data traffic per smartphone in European countries. For instance, in Denmark, OTT subscriptions reached 2.1 million in 2016 to 5.7 million in 2021. The number of social media users in Switzerland was 7.54 million, increasing by 440,000 between 2021 and 2022, indicating a 6.2% growth. Factors such as increased data consumption, time spent on smartphones, and growth of digitalization across all end users are leading to the rise in data traffic per smartphone.
- A major increase in data consumption was observed in 2021 after the COVID-19 pandemic, with more users switching to smartphones due to the remote working culture in the region. The data exchanged through the internet exchange operator, DE-CIX, reported an increase in data throughput from 32 exabytes in 2020 to more than 38 exabytes in 2021. Such statistics suggest the significant growth of data traffic per smartphone in the region.
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Increasing spending by European users on the App Store and Google Play along with cashless transactions increases the Data Center demand
- In 2021, mobile technologies and services generated around 4.6% of the GDP in Europe, a contribution that amounted to more than EUR 745 billion of the economic value. The average lifespan of a smartphone in Europe is three years, with annual sales of almost 211 million units.
- In Europe, 474 million individuals were subscribers to mobile services in 2021. By 2025, this number is projected to increase to 480 million. Over two-thirds of regional operators have built 5G networks, and most European nations have implemented commercial 5G services. There may be 311 million 5G connections in Europe by 2025, representing a 44% adoption rate. The year 2021 witnessed USD 18.3 billion in spending by European users on the App Store and Google Play. Based on customer spending for in-app purchases, subscriptions, and premium apps, this prediction represented a 22.8% rise in yearly gross income from 2020. European spending accounted for approximately 14% of global mobile app revenue in 2021, which reached USD 131.6 billion.
- The internet penetration in Switzerland increased from 89% in 2016 to 96% in 2021, while at the same time, the number of smartphone users increased from 6.9 million in 2016 to 7.9 million in 2021. Owing to such extensive use, digital payment services were promoted, and their application increased due to the COVID-19 pandemic. More people in Switzerland are using cashless transactions. Only 35% of Swiss citizens still prefer cash as a form of payment, indicating that people are increasingly choosing cashless transactions, while the rest favor using a card or an app to pay. Such factors indicate the rising use of smartphones in the European market, resulting in a constant increase in data and necessitating a growing amount of storage space.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Ongoing investment by telecom companies such as Tele2, Telenor Net4Mobility in strengthening 4G and 5G services across Europe along with Government investment would flourish the Data centers market
- Increasing usage of FTTH/B to sustain the increase in traffic leads to data center adoption
- Increasing fiber infrastructural facilities to increase high broadband speed provide a demand in data center adoption
Europe Data Center Industry Overview
The Europe Data Center Market is fragmented, with the top five companies occupying 26.68%. The major players in this market are Digital Realty Trust Inc., Equinix Inc., NTT Ltd, SOCIETE FRANCAISE DU RADIOTELEPHONE - SFR and Virtus Data Centres Properties Ltd (STT GDC) (sorted alphabetically).
Europe Data Center Market Leaders
Digital Realty Trust Inc.
Equinix Inc.
NTT Ltd
SOCIETE FRANCAISE DU RADIOTELEPHONE - SFR
Virtus Data Centres Properties Ltd (STT GDC)
Other important companies include CyrusOne Inc., Data4, Global Switch Holdings Limited, Leaseweb Global BV, Stack Infrastructure Inc., Telehouse (KDDI Corporation), Vantage Data Centers LLC.
*Disclaimer: Major Players sorted in alphabetical order.
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Europe Data Center Market News
- February 2023: The French data center company Data4 will open a new site in Hanau, Germany. On the site of a former army barracks in Hanu, east of Frankfurt, P3 Logistic Parks, a European logistics real estate company backed by GIC, revealed plans for a sizable data center park last year. Following its purchase of the roughly 20-hectare site from P3, Data4 intends to develop a campus of its data centers.
- January 2023: CyrusOne acquired an office complex in Frankfurt, Germany, planning to turn it into a data center campus. The investment group Corum had sold the Europark office complex in Frankfurt for EUR 95 million (USD 102.3 million), before confirming that CyrusOne was the buyer.
- December 2022: The purchase of 74 extra acres in Prince William County's center was announced by STACK Infrastructure, the digital infrastructure partner to the majority of enterprises in the world. The freshly purchased acreage will increase the campus's 250MW capacity by 100MW.
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We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
Europe Data Center Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. MARKET OUTLOOK
- 4.1 It Load Capacity
- 4.2 Raised Floor Space
- 4.3 Colocation Revenue
- 4.4 Installed Racks
- 4.5 Rack Space Utilization
- 4.6 Submarine Cable
5. Key Industry Trends
- 5.1 Smartphone Users
- 5.2 Data Traffic Per Smartphone
- 5.3 Mobile Data Speed
- 5.4 Broadband Data Speed
- 5.5 Fiber Connectivity Network
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5.6 Regulatory Framework
- 5.6.1 Austria
- 5.6.2 Belgium
- 5.6.3 Denmark
- 5.6.4 France
- 5.6.5 Germany
- 5.6.6 Ireland
- 5.6.7 Italy
- 5.6.8 Netherlands
- 5.6.9 Norway
- 5.6.10 Poland
- 5.6.11 Russia
- 5.6.12 Spain
- 5.6.13 Sweden
- 5.6.14 Switzerland
- 5.6.15 United Kingdom
- 5.7 Value Chain & Distribution Channel Analysis
6. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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6.1 Data Center Size
- 6.1.1 Large
- 6.1.2 Massive
- 6.1.3 Medium
- 6.1.4 Mega
- 6.1.5 Small
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6.2 Tier Type
- 6.2.1 Tier 1 and 2
- 6.2.2 Tier 3
- 6.2.3 Tier 4
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6.3 Absorption
- 6.3.1 Non-Utilized
- 6.3.2 Utilized
- 6.3.2.1 By Colocation Type
- 6.3.2.1.1 Hyperscale
- 6.3.2.1.2 Retail
- 6.3.2.1.3 Wholesale
- 6.3.2.2 By End User
- 6.3.2.2.1 BFSI
- 6.3.2.2.2 Cloud
- 6.3.2.2.3 E-Commerce
- 6.3.2.2.4 Government
- 6.3.2.2.5 Manufacturing
- 6.3.2.2.6 Media & Entertainment
- 6.3.2.2.7 Telecom
- 6.3.2.2.8 Other End User
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6.4 Country
- 6.4.1 France
- 6.4.2 Germany
- 6.4.3 Ireland
- 6.4.4 Netherlands
- 6.4.5 Norway
- 6.4.6 Spain
- 6.4.7 Switzerland
- 6.4.8 United Kingdom
- 6.4.9 Rest of Europe
7. COMPETITIVE LANDSCAPE
- 7.1 Market Share Analysis
- 7.2 Company Landscape
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7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 7.3.1 CyrusOne Inc.
- 7.3.2 Data4
- 7.3.3 Digital Realty Trust Inc.
- 7.3.4 Equinix Inc.
- 7.3.5 Global Switch Holdings Limited
- 7.3.6 Leaseweb Global BV
- 7.3.7 NTT Ltd
- 7.3.8 SOCIETE FRANCAISE DU RADIOTELEPHONE - SFR
- 7.3.9 Stack Infrastructure Inc.
- 7.3.10 Telehouse (KDDI Corporation)
- 7.3.11 Vantage Data Centers LLC
- 7.3.12 Virtus Data Centres Properties Ltd (STT GDC)
- 7.4 LIST OF COMPANIES STUDIED
8. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9. APPENDIX
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9.1 Global Overview
- 9.1.1 Overview
- 9.1.2 Porter’s Five Forces Framework
- 9.1.3 Global Value Chain Analysis
- 9.1.4 Global Market Size and DROs
- 9.2 Sources & References
- 9.3 List of Tables & Figures
- 9.4 Primary Insights
- 9.5 Data Pack
- 9.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, EUROPE, 2017 - 2029
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), EUROPE, 2017 - 2029
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, EUROPE, 2017 - 2029
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, EUROPE, 2017 - 2029
- Figure 5:
- RACK SPACE UTILIZATION, %, EUROPE, 2017 - 2029
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, EUROPE, 2017 - 2029
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, EUROPE, 2017 - 2029
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, EUROPE, 2017 - 2029
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, EUROPE, 2017 - 2029
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, EUROPE, 2017 - 2029
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, EUROPE, 2017 - 2029
- Figure 12:
- VOLUME OF DATA CENTER SIZE, MW, EUROPE, 2017 - 2029
- Figure 13:
- VOLUME SHARE OF DATA CENTER SIZE, %, EUROPE, 2017 - 2029
- Figure 14:
- VOLUME SIZE OF LARGE, MW, EUROPE, 2017 - 2029
- Figure 15:
- VOLUME SHARE OF LARGE, MW, DATA CENTER SIZE, %, EUROPE, 2017 - 2029
- Figure 16:
- VOLUME SIZE OF MASSIVE, MW, EUROPE, 2017 - 2029
- Figure 17:
- VOLUME SHARE OF MASSIVE, MW, DATA CENTER SIZE, %, EUROPE, 2017 - 2029
- Figure 18:
- VOLUME SIZE OF MEDIUM, MW, EUROPE, 2017 - 2029
- Figure 19:
- VOLUME SHARE OF MEDIUM, MW, DATA CENTER SIZE, %, EUROPE, 2017 - 2029
- Figure 20:
- VOLUME SIZE OF MEGA, MW, EUROPE, 2017 - 2029
- Figure 21:
- VOLUME SHARE OF MEGA, MW, DATA CENTER SIZE, %, EUROPE, 2017 - 2029
- Figure 22:
- VOLUME SIZE OF SMALL, MW, EUROPE, 2017 - 2029
- Figure 23:
- VOLUME SHARE OF SMALL, MW, DATA CENTER SIZE, %, EUROPE, 2017 - 2029
- Figure 24:
- VOLUME OF TIER TYPE, MW, EUROPE, 2017 - 2029
- Figure 25:
- VOLUME SHARE OF TIER TYPE, %, EUROPE, 2017 - 2029
- Figure 26:
- VOLUME SIZE OF TIER 1 AND 2, MW, EUROPE, 2017 - 2029
- Figure 27:
- VOLUME SHARE OF TIER 1 AND 2, MW, TIER TYPE, %, EUROPE, 2017 - 2029
- Figure 28:
- VOLUME SIZE OF TIER 3, MW, EUROPE, 2017 - 2029
- Figure 29:
- VOLUME SHARE OF TIER 3, MW, TIER TYPE, %, EUROPE, 2017 - 2029
- Figure 30:
- VOLUME SIZE OF TIER 4, MW, EUROPE, 2017 - 2029
- Figure 31:
- VOLUME SHARE OF TIER 4, MW, TIER TYPE, %, EUROPE, 2017 - 2029
- Figure 32:
- VOLUME OF ABSORPTION, MW, EUROPE, 2017 - 2029
- Figure 33:
- VOLUME SHARE OF ABSORPTION, %, EUROPE, 2017 - 2029
- Figure 34:
- VOLUME SIZE OF NON-UTILIZED, MW, EUROPE, 2017 - 2029
- Figure 35:
- VOLUME SHARE OF NON-UTILIZED, MW, ABSORPTION, %, EUROPE, 2017 - 2029
- Figure 36:
- VOLUME OF COLOCATION TYPE, MW, EUROPE, 2017 - 2029
- Figure 37:
- VOLUME SHARE OF COLOCATION TYPE, %, EUROPE, 2017 - 2029
- Figure 38:
- VOLUME SIZE OF HYPERSCALE, MW, EUROPE, 2017 - 2029
- Figure 39:
- VOLUME SHARE OF HYPERSCALE, MW, COLOCATION TYPE, %, EUROPE, 2017 - 2029
- Figure 40:
- VOLUME SIZE OF RETAIL, MW, EUROPE, 2017 - 2029
- Figure 41:
- VOLUME SHARE OF RETAIL, MW, COLOCATION TYPE, %, EUROPE, 2017 - 2029
- Figure 42:
- VOLUME SIZE OF WHOLESALE, MW, EUROPE, 2017 - 2029
- Figure 43:
- VOLUME SHARE OF WHOLESALE, MW, COLOCATION TYPE, %, EUROPE, 2017 - 2029
- Figure 44:
- VOLUME OF END USER, MW, EUROPE, 2017 - 2029
- Figure 45:
- VOLUME SHARE OF END USER, %, EUROPE, 2017 - 2029
- Figure 46:
- VOLUME SIZE OF BFSI, MW, EUROPE, 2017 - 2029
- Figure 47:
- VOLUME SIZE OF CLOUD, MW, EUROPE, 2017 - 2029
- Figure 48:
- VOLUME SIZE OF E-COMMERCE, MW, EUROPE, 2017 - 2029
- Figure 49:
- VOLUME SIZE OF GOVERNMENT, MW, EUROPE, 2017 - 2029
- Figure 50:
- VOLUME SIZE OF MANUFACTURING, MW, EUROPE, 2017 - 2029
- Figure 51:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, EUROPE, 2017 - 2029
- Figure 52:
- VOLUME SIZE OF TELECOM, MW, EUROPE, 2017 - 2029
- Figure 53:
- VOLUME SIZE OF OTHER END USER, MW, EUROPE, 2017 - 2029
- Figure 54:
- VOLUME OF COUNTRY, MW, EUROPE, 2017 - 2029
- Figure 55:
- VOLUME SHARE OF COUNTRY, %, EUROPE, 2017 - 2029
- Figure 56:
- VOLUME SIZE OF FRANCE, MW, FRANCE, 2017 - 2029
- Figure 57:
- VOLUME SIZE OF GERMANY, MW, GERMANY, 2017 - 2029
- Figure 58:
- VOLUME SIZE OF IRELAND, MW, IRELAND, 2017 - 2029
- Figure 59:
- VOLUME SIZE OF NETHERLANDS, MW, NETHERLANDS, 2017 - 2029
- Figure 60:
- VOLUME SIZE OF NORWAY, MW, NORWAY, 2017 - 2029
- Figure 61:
- VOLUME SIZE OF SPAIN, MW, SPAIN, 2017 - 2029
- Figure 62:
- VOLUME SIZE OF SWITZERLAND, MW, SWITZERLAND, 2017 - 2029
- Figure 63:
- VOLUME SIZE OF UNITED KINGDOM, MW, UNITED KINGDOM, 2017 - 2029
- Figure 64:
- VOLUME SIZE OF REST OF EUROPE, MW, REST OF EUROPE, 2017 - 2029
- Figure 65:
- VOLUME SHARE OF MAJOR PLAYERS, %, EUROPE, 2022
Europe Data Center Industry Segmentation
Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption. France, Germany, Ireland, Netherlands, Norway, Spain, Switzerland, United Kingdom are covered as segments by Country.
- The tier 3 segment currently has a majority of share in the European region due to the major advantage of its features. These tiers have a high redundancy level and multiple paths for power and cooling. These data centers have an uptime of around 99.982%, translating into a downtime of 1.6 hours per year. The increasing adoption of edge and cloud connectivity is expected to boost the segment's growth.
- The United Kingdom hosts the maximum number of tier 3 data centers in the country, with Slough and Greater London holding a major share. The other major locations are France, Germany, Ireland, and other countries. Dublin is the only region that hosts more than 98% of the tier 3 data center facilities in Ireland, with North and South Dublin holding a major share. The tier 3 segment is expected to grow from 7,979.69 MW in 2023 to 12,110.18 MW in 2029, with a CAGR of 7.20%.
- The tier 4 segment is expected to record the highest CAGR of 15.51% during the forecast period. Various developed countries are focusing on adopting Tier 4 certifications to get the advantage of complete fault tolerance and redundancy for every component. Thus, even the developing regions are adopting the tier 4 zone. For instance, the tier 2 metro markets, outside the traditional FLAP markets, are set to see the fastest capacity growth from a low initial starting point. In particular, the Barcelona, Milan, and Rome metro markets are expected to triple the amount of data center power over the next four years.
- Tier 1 & 2 types showcase the least majority growth as more than 70% of all traffic today moves from server to server. Modern applications require significantly more data to travel within a data center at faster speeds and are more particular about latency.
| Data Center Size | Large | ||
| Massive | |||
| Medium | |||
| Mega | |||
| Small | |||
| Tier Type | Tier 1 and 2 | ||
| Tier 3 | |||
| Tier 4 | |||
| Absorption | Non-Utilized | ||
| Utilized | By Colocation Type | Hyperscale | |
| Retail | |||
| Wholesale | |||
| Utilized | By End User | BFSI | |
| Cloud | |||
| E-Commerce | |||
| Government | |||
| Manufacturing | |||
| Media & Entertainment | |||
| Telecom | |||
| Other End User | |||
| Country | France | ||
| Germany | |||
| Ireland | |||
| Netherlands | |||
| Norway | |||
| Spain | |||
| Switzerland | |||
| United Kingdom | |||
| Rest of Europe |
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Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
| Keyword | Definition |
|---|---|
| Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
| Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
| IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
| Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
| Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
| Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
| Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
| Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
| Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
| Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
| Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
| Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
| Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
| Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
| N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
| N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
| 2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
| In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
| Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
| Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
| Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
| Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
| Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
| Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
| Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
| Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
| Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
| Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
| Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
| Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
| Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
| Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
| Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
| Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
| Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
| Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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