Market Size of europe data center Industry
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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.
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 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.
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Europe Data Center Market Size Summary
The Europe Data Center Market is experiencing significant growth, driven by the increasing demand for digital services and the expansion of colocation facilities. The market is characterized by a diverse range of data center types, with Tier 3 and Tier 4 segments leading the way due to their advanced features and high redundancy levels. The adoption of edge and cloud connectivity is further propelling the growth of these segments. The United Kingdom, particularly Greater London and Slough, hosts a substantial number of Tier 3 data centers, while other countries like France, Germany, and Ireland are also key players in the market. The FLAP-D metro markets, including Frankfurt, London, Amsterdam, Paris, and Dublin, are the largest data center hubs, but emerging regions such as Italy, Poland, Belgium, and Sweden are gaining traction due to factors like lower land costs and enhanced connectivity.
The market landscape is fragmented, with major players like Digital Realty Trust Inc., Equinix Inc., and NTT Ltd. holding significant shares. The ongoing trend of increased data consumption, fueled by the rise of OTT services and mobile data usage, is driving the demand for more data processing and storage facilities. The COVID-19 pandemic has accelerated this trend, leading to a surge in smartphone usage and digital transactions. Renewable energy initiatives are also gaining momentum, particularly in the FLAP-D markets, with countries like France investing heavily in renewable energy projects. As the market continues to evolve, investments are shifting towards regions with favorable conditions, such as Amsterdam, which offers lower land prices compared to London.
Europe Data Center Market Size - Table of Contents
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1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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1.1 Data Center Size
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1.1.1 Large
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1.1.2 Massive
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1.1.3 Medium
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1.1.4 Mega
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1.1.5 Small
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1.2 Tier Type
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1.2.1 Tier 1 and 2
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1.2.2 Tier 3
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1.2.3 Tier 4
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1.3 Absorption
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1.3.1 Non-Utilized
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1.3.2 Utilized
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1.3.2.1 By Colocation Type
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1.3.2.1.1 Hyperscale
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1.3.2.1.2 Retail
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1.3.2.1.3 Wholesale
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1.3.2.2 By End User
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1.3.2.2.1 BFSI
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1.3.2.2.2 Cloud
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1.3.2.2.3 E-Commerce
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1.3.2.2.4 Government
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1.3.2.2.5 Manufacturing
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1.3.2.2.6 Media & Entertainment
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1.3.2.2.7 Telecom
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1.3.2.2.8 Other End User
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1.4 Country
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1.4.1 France
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1.4.2 Germany
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1.4.3 Ireland
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1.4.4 Netherlands
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1.4.5 Norway
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1.4.6 Spain
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1.4.7 Switzerland
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1.4.8 United Kingdom
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1.4.9 Rest of Europe
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Europe Data Center Market Size FAQs
What is the current Europe Data Center Market size?
The Europe Data Center Market is projected to register a CAGR of 7.96% during the forecast period (2024-2029).
Who are the key players in Europe Data Center Market?
Digital Realty Trust Inc., Equinix Inc., NTT Ltd, SOCIETE FRANCAISE DU RADIOTELEPHONE - SFR and Virtus Data Centres Properties Ltd (STT GDC) are the major companies operating in the Europe Data Center Market.
