Europe Data Center Power Market Size (2024 - 2029)

The Europe Data Center Power Market is experiencing growth driven by the increasing number of data centers and the rising demand for electricity in the region. This expansion is further fueled by the proliferation of IT infrastructure, digitalization, and cloud service providers. Despite the challenges posed by the COVID-19 pandemic, which temporarily halted construction in several countries, the market has rebounded with investments in efficient power infrastructure and the modernization of outdated facilities. European policymakers are actively addressing the sector's rising energy consumption through initiatives like the EU code of conduct and the Climate Neutral Data Center Pact, aiming to balance energy demands with sustainability goals. However, the market faces challenges due to high energy prices and supply disruptions, which could impact its growth trajectory.

Market Size of Europe Data Center Power Industry

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Europe Data Center Power Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 7.40 %
Market Concentration Medium

Major Players

Europe Data Center Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Europe Data Center Power Market Analysis

The Europe Data Center Power Market is expected to grow at a CAGR of 7.4% during the forecast period. Growth in the number of data centers in the region is leading to an increase in electricity demand and the emergence of a new electricity-intensive industry. In addition, other key factors driving the Europe data center power market are the increased number of IT infrastructure components, increasing digitalization, and an increasing number of cloud service providers.

  • The spread of COVID-19 negatively affected significant regional data center operations. Some countries, such as the UK, Germany, the Netherlands, France, and Ireland, were impacted most, as many governments halted their construction work in the year's first half. For instance, the government of France stopped all non-essential construction projects to avoid spreading the virus.
  • Post-pandemic, the region has been witnessing strong growth with an increase in efficient power infrastructure spending, shifting old, outdated data centers to modern facilities. According to the EU, by 2030, data centers in Europe are expected to account for 3.2% of electricity demand within the EU, an 18.5% jump from 2018. In coming years, the market is expected to generate 30 times more data with an increased number of servers, leading to higher energy consumption.
  • Many European policymakers have identified data centers as one of the fastest-rising sectors regarding energy consumption. European policymakers have formulated an EU code of conduct to inform and encourage data center operators to reduce energy consumption cost-effectively without impacting the critical functionality of data centers. Such factors are further expected to drive market growth.
  • Further, increasing renewable energy procurement is analyzed to drive Europe's data center power market. To ensure data centers are an essential part of the sustainable future of Europe, data center market vendors and trade associations have agreed to make data centers climate-neutral by 2030. European cloud and data center operators, including Interxion (Digital Realty), OVHcloud, Equinix, Scaleway Datacenter, Aruba, and other industry associations, have signed the Climate Neutral Data Center Pact.
  • However, the current spike in energy prices and disruptions to the energy supply in European countries is raising challenges for data center operators, which are simultaneously experiencing a drastic increase in demand for data processing, traffic, and storage since the pandemic. While data center power demand is rapidly increasing, power availability is increasingly lacking. Such factors can limit the growth of the data center power market in the region.

Europe Data Center Power Industry Segmentation

Data center power involves installing, managing, and monitoring the power units to improve power efficiency within the data center. Various data centers across the global market are adopting 2N redundant UPS systems to cope with various feed designs of the facility and frequent failure, including energy-efficient solutions in other segments, including PDU, Busway, etc.

The Europe Data Center Power Market is segmented By Type (Solutions (Power Distribution Unit, UPS, Busway, Other Solutions), Services (Consulting, System Integration, Professional Service)), End-user Application (Information Technology, Manufacturing, BFSI, Government, Telecom), Country (United Kingdom, Germany, Italy, Rest of Europe).

The market sizes and forecasts are provided in terms of value (USD Billion) for all the above segments.

Type
Solutions
Power Distribution Unit
UPS
Busway
Other Solutions
Services
Consulting
System Integration
Professional Service
End-user Application
Information Technology
Manufacturing
BFSI
Government
Telecom
Other End-user Applications
Country
United Kingdom
Germany
Italy
Rest of Europe
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Europe Data Center Power Market Size Summary

The Europe data center power market is experiencing significant growth, driven by the increasing number of data centers and the rising demand for electricity in the region. This growth is fueled by factors such as the expansion of IT infrastructure components, the surge in digitalization, and the proliferation of cloud service providers. The market is also witnessing a shift towards modern, efficient power infrastructure as companies move away from outdated facilities. Despite the challenges posed by the COVID-19 pandemic, which temporarily halted construction activities in several countries, the market has rebounded strongly. European policymakers are actively promoting energy efficiency in data centers through initiatives like the EU code of conduct, which encourages operators to reduce energy consumption without compromising functionality. Additionally, the commitment to making data centers climate-neutral by 2030, as part of the Climate Neutral Data Center Pact, is expected to further drive market growth.

The market landscape is moderately concentrated, with major players such as Schneider Electric SE, Fujitsu Ltd, Cisco Technology Inc., Eaton Corporation, and ABB Ltd. dominating the scene. These companies are focusing on expanding their global presence and enhancing profitability through strategic collaborations and technological advancements. The growing adoption of cloud computing services and the increasing penetration of connected devices are contributing to the market's expansion, with countries like Germany leading the charge due to their high data center energy consumption and availability of cloud service providers. The market is also witnessing investments in regions with favorable conditions for data centers, such as the Nordic countries, which offer renewable energy resources and low power prices. Despite the challenges of rising energy prices and supply disruptions, the demand for efficient data center power solutions continues to grow, driven by the need for advanced technologies in various end-user industries.

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Europe Data Center Power Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Buyers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Intensity of Competitive Rivalry

      5. 1.3.5 Threat of Substitute Products

    4. 1.4 Assessment of the Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Solutions

        1. 2.1.1.1 Power Distribution Unit

        2. 2.1.1.2 UPS

        3. 2.1.1.3 Busway

        4. 2.1.1.4 Other Solutions

      2. 2.1.2 Services

        1. 2.1.2.1 Consulting

        2. 2.1.2.2 System Integration

        3. 2.1.2.3 Professional Service

    2. 2.2 End-user Application

      1. 2.2.1 Information Technology

      2. 2.2.2 Manufacturing

      3. 2.2.3 BFSI

      4. 2.2.4 Government

      5. 2.2.5 Telecom

      6. 2.2.6 Other End-user Applications

    3. 2.3 Country

      1. 2.3.1 United Kingdom

      2. 2.3.2 Germany

      3. 2.3.3 Italy

      4. 2.3.4 Rest of Europe

Europe Data Center Power Market Size FAQs

The Europe Data Center Power Market is projected to register a CAGR of 7.40% during the forecast period (2024-2029)

Eaton Corporation Plc., Schneider Electric SE, Fujitsu Ltd., ABB Ltd. and Cisco Systems, Inc. are the major companies operating in the Europe Data Center Power Market.

Europe Data Center Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)