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Europe Data Center Market Size 2025-2029

The europe data center market size is forecast to increase by USD 411 billion at a CAGR of 29.7% between 2024 and 2029.

The European data center market is experiencing significant shifts driven by the increasing adoption of cloud services and the growing importance of data protection regulations. Businesses are increasingly turning to hybrid and multi-cloud environments to optimize their IT infrastructure and improve agility. This trend is expected to continue, as cloud services offer scalability, flexibility, and cost savings. However, the implementation of stringent data protection regulations, such as the General Data Protection Regulation (GDPR), poses a challenge for data center operators. Compliance with these regulations requires robust security measures and significant investments in technology and personnel. Another major challenge for the European data center market is the increasing threat of cyber attacks. With the growing amount of sensitive data being stored and processed in data centers, cyber security has become a top priority. Data centers must invest in advanced security solutions to protect against cyber threats and ensure the confidentiality, integrity, and availability of their clients' data. Despite these challenges, the European data center market offers significant opportunities for growth. Companies that can effectively navigate these challenges and provide secure, reliable, and cost-effective data center solutions will be well-positioned to capitalize on the growing demand for cloud services and data protection compliance.

What will be the size of the Europe Data Center Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The European data center market is witnessing significant advancements, with the adoption of micro data centers and software-defined data centers (SDDCs) gaining traction. Data center investment continues to flow in, with Real Estate Investment Trusts (REITs) playing a pivotal role. Liquid cooling and immersion cooling are revolutionizing cooling systems, enhancing efficiency and reducing energy consumption. Data center innovation is at the forefront, with trends such as data center interoperability, compliance, and audit gaining importance. Hyperscale data centers and edge data centers are shaping the future of the industry, while data center orchestration is streamlining operations. Data center standards are evolving to address these trends, ensuring seamless integration and optimal performance.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. End-userMedium and small enterprisesLarge enterprisesComponentIT infrastructurePower managementCooling solutionsGeneral constructionOthersTypeHyperscaleRetailWholesaleSectorBFSICloudE-commerceGovernmentOthersGeographyEuropeFranceGermanyThe NetherlandsUK

By End-user Insights

The medium and small enterprises segment is estimated to witness significant growth during the forecast period.

The European data center market is experiencing significant growth due to the increasing adoption of artificial intelligence and IT outsourcing. As businesses increasingly rely on data to drive decision-making and remain competitive, there is a rising demand for advanced data center infrastructure. Cooling systems, fiber optic cables, server racks, and other essential components are in high demand. Data center services, including disaster recovery and business continuity solutions, are crucial for organizations seeking to ensure data availability and minimize downtime. Data analytics and machine learning are also driving demand for data center upgrades and expansions. Data center staffing and operations are becoming more complex, necessitating specialized skills and expertise. Uptime Institute's tier certification is a recognized standard for measuring a data center's reliability and performance. Energy efficiency and green data centers are becoming increasingly important, with providers investing in precision cooling and capacity planning to reduce energy consumption and carbon emissions. Data center design and optimization are also key areas of focus, with providers offering managed services and network switches to help businesses maximize their IT infrastructure's potential. Modular data centers and data center interconnection are also gaining popularity, enabling businesses to scale their operations and improve network connectivity. Data center construction and decommissioning are ongoing processes, with providers offering solutions for both new builds and

As of March 2025, *** data centers were listed as being located in Germany, the most of any European nation. Data centers are facilities housing critical IT infrastructure designed to store, process, and manage vast volumes of data. The United States is home to the largest share of data centers worldwide, with over ***** facilities.

The Europe Data Center Market report segments the industry into Data Center Size (Large, Massive, Medium, Mega, Small), Tier Type (Tier 1 and 2, Tier 3, Tier 4), Absorption (Non-Utilized, Utilized), and Country (France, Germany, Ireland, Netherlands, Norway, Spain, Switzerland, United Kingdom, Rest of Europe). Get five years of historical data alongside five-year market forecasts.

London remained Europe's largest data center market in 2024, with total inventory in the British capital surpassing ***** megawatts as of the fourth quarter of the year. Frankfurt was the second-largest market, followed by Amsterdam. Major markets feel the strain Collectively referred to as the FLAPD markets, Frankfurt, London, Amsterdam, Paris, and Dublin are the data center hubs powering Europe's digital transformation. However, with data center demand surging across the world, operators are finding it increasingly difficult to secure power and land in these established markets. Local officials in Dublin, for example, have enforced a de facto moratorium on new facilities in the city, with data centers already accounting for more than a fifth of the country's total energy consumption. Striking a balance Rising demand poses a challenge for European authorities. On the one hand, the expansion of digital infrastructure is considered crucial if the region is to fully realize the economic potential of AI and next-generation technologies. On the other hand, the European Union faces increasing pressure to rein in the power and water intensive data center industry. Newly introduced regulations in the EU aim to address this by requiring major operators in the bloc to report key efficiency metrics, thereby helping to quantify the market’s drain on resources.

The Europe data center market size was valued at USD 47.23 billion in 2024 and is expected to reach USD 97.30 billion by 2030, growing at a CAGR of 12.80% during the forecast period.

Europe Data Center Construction Market Report Segments the Industry Into Infrastructure (By Electrical Infrastructure, by Mechanical Infrastructure, General Construction), by Tier Type (Tier 1 and 2, Tier 3, Tier 4), by Data Center Type (Colocation, Self-Built Hyperscalers (CSPs) and More). The Market Sizes and Forecasts are Provided in Terms of Value (USD Million) for all the Above Segments.

Over the last two observations, the revenue is forecast to significantly increase in all regions. From the selected regions, the ranking by revenue in the data center market is forecast to be led by Central & Western Europe with 84.18 billion euro. In contrast, the ranking is trailed by Eastern Europe with 7.34 billion euro, recording a difference of 76.84 billion euro to Central & Western Europe. The Statista Market Insights cover a broad range of additional markets.

European 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) for all the Above Segments.

Europe Data Center Server Market is Segmented by Data Center Tier(Tier 1 and 2, and More), Form Factor(Half-Height Blades, Full-Height Blades and More), Application(virtualisation and Private Cloud, High-Performance Computing and More), Data Center Type(Hyperscalers Provider and More), End User Industry(BFSI and More)and by Country. The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

In 2023, London was Europe's largest data center market, with live power supply capacity of *** gigawatts, *** megawatts under construction and *** gigawatts in committed or early stage IT power. Committed developments refer to developments that have already been purchased by the end customer. In terms of committed capacity, Frankfurt came second in ranking, with an aggregate data center power supply measuring approximately *** megawatts.

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Western Europe Data Center Colocation Market Size 2025-2029

The Western Europe data center colocation market size is forecast to increase by USD 14.14 billion, at a CAGR of 19.1% between 2024 and 2029.

The market is experiencing significant growth due to the increasing demand for reliable and efficient data center solutions. Key trends in the market include innovative approaches such as the development of submarine data centers, which offer enhanced connectivity and disaster recovery capabilities. Additionally, there is a focus on data center consolidation, as businesses look to reduce costs and improve operational efficiency. These trends are driving the growth of the market, making it an attractive investment opportunity for businesses in need of secure and scalable data center solutions. Furthermore, the use of advanced technologies like artificial intelligence and machine learning is expected to further boost market growth, as these technologies require large amounts of data processing power and storage capacity. Overall, the market is poised for continued growth, offering numerous opportunities for businesses seeking to optimize their IT infrastructure and improve their digital capabilities.

What will be the Size of the market During the Forecast Period?

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The market continues to experience strong growth, driven by the increasing demand for secure and reliable infrastructure to support the expanding digital economy. With the proliferation of cloud platforms like Microsoft Azure and the growing importance of data protection regulations such as GDPR, data centers have become essential infrastructure for businesses seeking to manage their data and comply with evolving data protection requirements. This trend is particularly pronounced In the Nordic region, where economic growth and the adoption of artificial intelligence and automation technologies are driving data generation and the need for advanced colocation solutions.
The market is expected to reach significant colocation revenue figures, as businesses continue to prioritize Opex-friendly infrastructure solutions and seek to optimize their IT operations. The market is characterized by a diverse range of players, from established providers like Equinix and Interxion to emerging players in the Nordics, such as Data4 and others. The market is also witnessing the integration of advanced technologies like AI and pattern recognition into colocation offerings, as part of national AI strategies and the broader tech markets' evolution.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Retail colocation
  Wholesale colocation


End-user

  Small and medium sized enterprises
  Large enterprises


Industry Application

  Retail
  BFSI
  IT and telecom
  Healthcare
  Others


Business Segment

  Tier 1
  Tier 2
  Tier 3
  Tier 4


Geography

  Western Europe

By Type Insights

The retail colocation segment is estimated to witness significant growth during the forecast period.

Colocation is a data center solution where businesses rent space to house their IT infrastructure within a third-party facility. Retail colocation, specifically, involves enterprises leasing racks, cage spaces, or private suites within large data centers for one to three years. This trend is gaining traction among Small and Medium Enterprises (SMEs) due to the cost savings from reduced Capital Expenditure (CAPEX) and Operating Expenditure (OPEX) compared to managing in-house data centers. The growth of retail colocation is driven by the escalating costs of building and maintaining traditional data centers. European cities such as Reykjavik, Milan, Warsaw, Prague, Vienna, Madrid, and Oslo are popular destinations for colocation due to their strategic locations, economic growth, and tech markets.

Compliance with regulations like GDPR and Data Protection acts is another factor driving demand for colocation services. Furthermore, the integration of Artificial Intelligence, automation, and pattern recognition technologies in data centers is fueling innovation. The European Green Deal and the European climate pact's focus on carbon neutrality are also influencing data center infrastructure investments. Tax incentives and policies such as the Local Digital Declaration, Technology Code, and Cloud First Policy are further boosting the colocation market.

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Market Dynamics

Our Western Europe Data Center Colocation Market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers w

Europe Data Center Power Market size was valued at USD 4.30 Billion in 2023 and is projected to reach USD 8.57 Billion by 2031, growing at a CAGR of 9% from 2024 to 2031.

Europe Data Center Power Market Dynamics

The key market dynamics that are shaping the Europe Data Center Power Market include:

Key Market Drivers:

Increased Adoption of Cloud Computing and Digital Services: According to a report by Eurostat, the share of enterprises using cloud computing services in the EU increased from 19% in 2014 to 36% in 2020. This shift towards cloud-based infrastructure has led to a growing demand for energy-efficient data centers to support the rising digital workloads. Stringent Regulations on Energy Efficiency and Carbon Emissions: The European Union has set ambitious targets to reduce greenhouse gas emissions by at least 55% by 2030 and achieve climate neutrality by 2050.

The Central and Eastern Europe data center market was valued at USD 7.25 billion in 2021 and is expected to reach USD 10.68 billion by 2027, growing at a CAGR of 6.67% during the forecasted period.

Europe Data Center Cooling Market is Segmented by Data Center Type (Hyperscalers (owned and Leased), Enterprise and Edge, Colocation), Tier Type (Tier 1 and 2, Tier 3, Tier 4), Cooling Technology (Air Based Cooling, Liquid Based Cooling), Component (Service, Equipment), and by Country. The Market Forecasts are Provided in Terms of Value (USD).

The database covers the Europe data centers portfolio analysis of 1355 existing & 240 upcoming data centers spread across 20 countries.

London had a reported *** megawatts (MW) of data center capacity under construction as of the second half of 2024, the most of any European market. The British capital also had the most capacity planned, ahead of Frankfurt and Dublin. The FLAPD markets dominate the European data center industry The data center markets of Frankfurt, London, Amsterdam, Paris, and Dublin, collectively referred to as FLAPD, are the key hubs powering the 98 billion euro European market. London is the largest of these markets, with its total inventory of almost ***** MW placing it second only to Northern Virginia in global rankings. While land and energy availability in the London area pose challenges, many investors are willing to pay the price for proximity to a global commercial hub. Sustainability tops the agenda Efficiency and sustainability have become key concerns in the European market, with expanding data center facilities proving a significant drain on local infrastructure. The European Union has looked to take a leading role in this regard, seeking to grow the region’s green data center market. In addition, EU legislation adopted in 2024 requires the publication of key performance metrics in order for operators to be rated against sustainability criteria.

European data centres are set for a 22% growth in capacity in 2023 but still struggle with high demand and challenges from AI reliance and grid constraints.

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Hyperscale Data Center Market Size 2025-2029

The hyperscale data center market size is forecast to increase by USD 485.5 billion, at a CAGR of 38.4% between 2024 and 2029.

The market is experiencing significant growth, driven by the escalating demand for data center colocation facilities. Businesses are increasingly seeking to outsource their IT infrastructure to hyperscale data centers, which offer cost savings, improved scalability, and enhanced security. Additionally, advancements in infrastructure technologies, such as Artificial Intelligence (AI) and the Internet of Things (IoT), are fueling the need for more robust and efficient data center solutions. However, the market also faces challenges. The consolidation of data centers is intensifying competition, as major players continue to expand their offerings and acquire smaller competitors. Furthermore, the increasing complexity of managing large-scale data centers presents operational challenges, including energy efficiency, cooling systems, and network connectivity. Companies must navigate these obstacles to effectively capitalize on the market's potential and maintain a competitive edge. To succeed, they must focus on delivering innovative solutions that address the evolving needs of their customers while ensuring operational efficiency and cost-effectiveness.

What will be the Size of the Hyperscale Data Center Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, with dynamic market activities shaping its landscape. Cloud storage solutions are increasingly being adopted, leading to data center consolidation and the rise of modular data centers. Power management and data center efficiency are key areas of focus, with an emphasis on renewable energy and green data centers. Cloud service providers are expanding their offerings, incorporating block storage, database services, and data analytics platforms. Data center construction and simulation tools are streamlining the design process, while data center interconnection and network security solutions are enhancing connectivity and protecting against cyber threats. High-performance computing and managed services are driving innovation in various sectors, including finance, healthcare, and research. Data sovereignty and data governance are becoming crucial considerations, with DNS management and IP addressing playing important roles in ensuring data privacy and compliance. Micro data centers and edge computing are gaining traction, extending data processing capabilities closer to the source. Hyperscale computing and load balancers are enabling scalable infrastructure, while hybrid cloud models and business continuity solutions are ensuring uptime and disaster recovery. Data center optimization, capacity planning, and virtualization technologies are optimizing network bandwidth and server utilization. Power usage effectiveness and water usage effectiveness are essential metrics, with building management systems and environmental monitoring solutions helping to reduce carbon footprint. Data center certifications and standards are ensuring best practices and driving industry growth. Cloud cost optimization and cloud migration are ongoing priorities, with infrastructure as code and machine learning solutions streamlining operations and reducing costs. Artificial intelligence and network switches are enhancing network performance and enabling new applications. Fiber optic cables and data center automation are improving network connectivity and efficiency. Overall, the market is characterized by continuous innovation and evolution, with a diverse range of applications and technologies shaping its future.

How is this Hyperscale Data Center Industry segmented?

The hyperscale data center industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeCritical infrastructureSupport infrastructureEnd-userBFSIEnergyITOthersComponentSolutionsServiceDeployment TypeGreenfieldBrownfield GreenfieldBrownfield Energy SourceRenewable EnergyUPS SystemsHybrid PowerEnergy StorageGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKMiddle East and AfricaUAEAPACChinaIndiaJapanSouth AmericaBrazilRest of World (ROW).

By Type Insights

The critical infrastructure segment is estimated to witness significant growth during the forecast period.In the dynamic data center market, design plays a crucial role in accommodating various technologies such as NoSQL databases, edge computing, DDoS protection, software-defined networking, content delivery networks, and more. Renewable energy and green data centers are increasingly pri

In 2023, the Europe Data Center Market value reached 55.65 billion, and is projected to surge to $122.58 billion by 2030 due to rapid digital transformation

The data center power management industry in Western Europe is set to exhibit a CAGR of 6.1% through 2034. The demand for data center power management in Western Europe is poised to witness significant opportunities with US$ 4,669.5 million in 2024. Profitability is not a priority in Western Europe, but industrial penetration is.

Attributes	Details
Industry Size of Data Center Power Management in Western Europe (2024)	US$ 4,669.5 million
Forecasted Industry Size of Data Center Power Management in Western Europe (2034)	US$ 8,425.3 million
CAGR Estimation (2024 to 2034)	6.1%

Country-wise Insights

Countries	Value CAGR from 2024 to 2034
United Kingdom	9.0%
Germany	7.8%

Category-wise insights

Category	Industrial Share in 2024
Modular Data Centers	25.7%
Tier-4 Data Centers	35.9%

Report Scope

Attribute	Details
Estimated Industry Size in 2024	US$ 4,669.5 million
Projected Industry Size by 2034	US$ 8,425.3 million
Anticipated CAGR between 2024 to 2034	6.1% CAGR
Demand Forecast for the Data Center Power Management in Western Europe	2024 to 2034
Report Coverage	Industry Size, Industry Trends, Analysis of key factors influencing the Data Center Power Management in Western Europe, Insights on Global Players and their Industry Strategy in Western Europe, Ecosystem Analysis of Local and Regional Western Europe Providers
Key Countries Analyzed	United Kingdom Germany France The Netherlands Italy Spain Rest of Western Europe
Key Companies Profiled	Schneider Electric SE Eaton Corporation ABB Group Vertiv Group Corp Raritan Inc. (Legrand) Siemens AG Riello Elettronica Group Server Technology (Legrand) Piller Power Systems Cyber Power Systems Inc.