The Europe Data Center Market is Segmented by Data Center Size (Large, Massive, Medium, Mega, and Small), Tier Type (Tier 1 and 2, Tier 3, and Tier 4), Data Center Type (Hyperscale/Self-built, Enterprise/Edge, and Colocation), End User (BFSI, IT and ITES, E-Commerce, Government, Manufacturing, Media and Entertainment, and More), and Geography. The Market Forecasts are Provided in Terms of IT Load Capacity (MW).

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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?

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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 end-of-life data center disposal. Pow

The Europe data center market was estimated 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% from 2024 to 2030.

Europe Data Center Power Market is Segmented by Solution Type (Power Distribution, Power Backup), Service (Design and Consulting, and More), Data Center Type (Colocation, Hyperscale, and More), End-User Industry (BFSI, IT and Telecom, and More), Power Capacity (greater Than 3 MW and More), Tier Standard (Tier I and II, and More), and Geography (Germany, UK, and More). The Market Forecasts are Provided in Terms of Value (USD).

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.

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).

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

In 2024, Germany ranked first by revenue in the data center market among the 27 countries presented in the ranking. Germany's revenue amounted to ************* U.S. dollars, while France and Italy, the second and third countries, had records amounting to ************* U.S. dollars and ************ U.S. dollars, respectively.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Data Center.

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.

The size of the Europe Data Center Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 6.00% during the forecast period.A data center is a building that contains computers and associated components, such as telecommunications and storage systems. These facilities provide the infrastructure necessary to store, process, and transmit data. Data centers are a part of modern society-from powering one's online shopping to enabling cloud computing.World-ranked data centers among the largest and most active in Europe, with growing cloud adoption, wide deployment of IoT, and strong demand to store and process the required amounts of data. Adding on to that, strong Europe data privacy requirements through GDPR further create demand for data centers that meet their requirements in terms of being secure.The drivers of growth for the European data center market are primarily the digitization of businesses and new technologies like artificial intelligence and machine learning, among others, requiring reliable and efficient data center infrastructure to support these developments. Recent developments include: 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.. Key drivers for this market are: , High Mobile penetration, Low Tariff, and Mature Regulatory Authority; Successful Privatization and Liberalization Initiatives. Potential restraints include: , Difficulties in Customization According to Business Needs. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

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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 will

The European data center rack market is experiencing robust growth, driven by the increasing adoption of cloud computing, big data analytics, and the expanding digital economy. The market, valued at approximately €[Estimate based on market size XX and region-specific data; for example, if XX represents the global market size, a reasonable estimate for Europe's share could be 25-35% depending on regional penetration]. in 2025, is projected to witness a compound annual growth rate (CAGR) of 8.80% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, the rising demand for high-performance computing and increased data storage capacity necessitates the deployment of efficient and scalable data center rack solutions across various sectors including IT & Telecommunications, BFSI (Banking, Financial Services, and Insurance), Government, and Media & Entertainment. Secondly, the ongoing digital transformation initiatives within these sectors are further contributing to the market's growth. The increasing adoption of edge computing and the proliferation of 5G networks are also creating significant opportunities for data center rack providers in Europe. Despite the positive outlook, certain challenges remain. The market faces restraints stemming from high initial infrastructure investments and ongoing maintenance costs associated with data center rack deployments. Furthermore, the increasing complexity of data center infrastructure management and the need for skilled professionals to operate and maintain these systems represent obstacles for market expansion. However, the significant benefits offered by data center racks in terms of improved energy efficiency, enhanced scalability, and enhanced data security are expected to outweigh these challenges, ensuring sustained market growth throughout the forecast period. The market is segmented by rack size (quarter rack, half rack, full rack) and end-user (IT & Telecommunications, BFSI, Government, Media & Entertainment, and Other End Users). Key players like Fujitsu, Legrand, Hewlett Packard Enterprise, nVent Electric, Schneider Electric, Dell, Black Box, Rittal, Vertiv, and Eaton are fiercely competing to capture market share by focusing on innovation, product differentiation, and strategic partnerships. The UK, Germany, France, and other major European economies are driving the growth within the region, given their robust digital infrastructure and thriving IT sectors. Recent developments include: 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. Thus providing opportunities for the vendors studied in the market., 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. Thus providing opportunities for the vendors studied in the market.. Key drivers for this market are: Increasing Deployment of Data Center Facilities, Growing Cloud Computing Adoption Leading to Investment in Hyperscale Data Centers; BFSI Sector Expected to Hold a Significant Share. Potential restraints include: Increasing Utilization of Blade Servers. Notable trends are: IT and Telecom to have significant market share.

The Europe data center colocation market is projected to reach an impressive USD 9.98 billion by 2028, reflecting strong growth and demand.

In the data center market in Europe in 2024, the network infrastructure segment generated the highest revenue, reaching approximately ************* U.S. dollars. The servers segment ranked second with around ************* U.S. dollars, while storage followed with about ************* U.S. dollars.

The European data center construction market is booming, reaching €15 billion in 2025 and projected to grow at a CAGR of 5.30% through 2033. Discover key drivers, trends, restraints, and leading companies shaping this dynamic sector. Learn about market size, segmentation, and regional insights in our comprehensive analysis. Key drivers for this market are: 5G Developments Fuelling Data Center Investments, Growing Cloud Servce adoption; Green Data Centers rising awarness of Carbon-Neutrality leading to Infrastructure upgrades. Potential restraints include: Security Challenges Impacting Growth of Data Centers. Notable trends are: United Kingdom leads the market with significant market share.

The Europe Data Center Networking Market Report Segments the Industry Into Components (By Product, by Services), End-Users (IT & Telecommunication, BFSI, Other End-Users). By Data-Center Type(Colocation, Hyperscalers/Cloud Service Providers, and More). And Bandwidth( ≤10 GbE, 25–40 GbE, and More). The Market Forecasts are Provided in Terms of Value (USD).

The Europe data center power market was valued at USD 4.21 billion in 2023 and is expected to reach USD 6.97 billion by 2029, growing at a CAGR of 8.76% from 2023 to 2029.

The database covers the Europe data centers portfolio analysis of 1,414 existing & 308 upcoming data centers spread across 21 countries.

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Data Center Market Size 2025-2029

The data center market size is valued to increase USD 535.6 billion, at a CAGR of 15.6% from 2024 to 2029. Rise in adoption of multi-cloud and network upgrades will drive the data center market.

Major Market Trends & Insights

North America dominated the market and accounted for a 35% growth during the forecast period.
By Component - IT infrastructure segment was valued at USD 109.40 billion in 2023
By End-user - BFSI segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 248.77 billion
Market Future Opportunities: USD 535.60 billion
CAGR : 15.6%
North America: Largest market in 2023

Market Summary

The market represents a dynamic and continually evolving landscape, driven by the increasing demand for digital transformation and the adoption of advanced technologies. Core technologies, such as artificial intelligence (AI) and multi-cloud solutions, are revolutionizing data center operations, with AI implementation projected to increase by 40% by 2025. Meanwhile, applications in sectors like finance, healthcare, and retail are fueling the growth of data centers. Service types, including colocation, managed services, and cloud services, are adapting to meet the demands of these evolving applications.
Regulatory compliance, particularly around data security and privacy, remains a significant challenge. Despite these hurdles, opportunities abound, with the market expected to grow at a steady pace, particularly in regions like Asia Pacific and Europe, where digital transformation is accelerating.

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

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How is the Data Center Market Segmented and what are the key trends of market segmentation?

The 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.

Component

  IT infrastructure
  Power management
  Mechanical construction
  General construction
  Security solutions


End-user

  BFSI
  Energy
  IT
  Others


Design

  Traditional
  Containerized
  Modular


Data Center Size

  Small and Medium Data Centers
  Large Data Centers


Tier Type

  Tier 1 and 2
  Tier 3
  Tier 4


Type

  Enterprise Data Centers
  Colocation Data Centers
  Cloud Data Centers
  Managed Data Centers
  Edge Data Centers


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Component Insights

The it infrastructure segment is estimated to witness significant growth during the forecast period.

Data centers are essential IT infrastructure components that house the hardware and systems required to support the increasing demand for computing power and data storage. The market encompasses various technologies, including server hardware, storage infrastructure, software-defined data centers (SDDC), network infrastructure, converged infrastructure, backup and recovery software, automation software, and data center infrastructure management (DCIM) solutions. Enterprises worldwide are adopting cloud technologies, leading to a shift from on-premises data centers to cloud-based alternatives. This trend is fueled by the need for scalability, flexibility, and cost savings. According to recent reports, the adoption of cloud services has grown by 25%, with an estimated 30% of all workloads expected to be run in the cloud by 2022.

Moreover, the rise of edge computing and the Internet of Things (IoT) is driving the demand for bandwidth utilization and low latency, leading to the deployment of edge data centers. The uninterruptible power supply (UPS) systems market is projected to expand at a steady pace due to the increasing importance of ensuring data center uptime and minimizing downtime. Structured cabling systems and fiber optic cabling are essential for efficient data transfer and communication within data centers. The market for these systems is expected to grow by 12% due to the need for high-speed connectivity and the increasing adoption of advanced technologies like software-defined networking (SDN) and hyperconverged infrastructure (HCI).

Data center automation and virtual machine management are crucial for managing the complexity of modern data centers. These technologies are expected to experience a growth rate of 15%, driven by the need for efficient resource utilization and the increasing adoption of DevOps practices. The market for high-availability clusters and disaster recovery planning solutions is expecte

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.