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.

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.

The Europe data center market by investment was valued at USD 42.98 billion in 2023 and is expected to reach USD 64.50 billion by 2029, growing at a CAGR of 7%.

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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 Europe data center market is advancing, supported by surging demand for cloud services , data center and technological upgrades like energy-efficient cooling systems that meet sustainability goals. This report provides actionable insights through comprehensive market size data, growth forecasts, and analysis of key segments such as hyperscale data centers, which lead due to their scalability for large tech firms. It highlights a notable trend in edge computing adoption, addressing low-latency needs, while noting a challenge from strict regulatory compliance, which raises operational costs. With regional insights, vendor strategies, and infrastructure trends, this report helps businesses refine planning, improve services, and maintain a competitive edge in a shifting global landscape by tackling efficiency and regulation.

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The market is experiencing strong growth as businesses and individuals increasingly rely on digitalization for communication, commerce, and entertainment. This trend is driving demand for advanced data processing solutions, leading to significant investments in new data center infrastructure from various stakeholders, including investors seeking growth capital and cloud companies expanding their offerings. Scalability and flexibility are key considerations for data center design, with edge computing gaining traction to reduce latency and improve user experience. Cost savings and energy efficiency are also critical factors, leading to increased adoption of renewable energy sources such as solar, wind, geothermal, and wave energy for powering data centers.

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.

End-user

  Medium and small enterprises
  Large enterprises


Component

  IT infrastructure
  Power management
  Cooling solutions
  General construction
  Others


Type

  Hyperscale
  Retail
  Wholesale


Sector

  BFSI
  Cloud
  E-commerce
  Government
  Others


Geography

  Europe

    Germany
    UK
    France


  APAC

    India
    Japan
    China


  South America

    Brazil


  North America

    US
    Canada

By End-user Insights

The medium and small enterprises segment is estimated to witness significant growth during the forecast period.The market is experiencing significant growth due to the digitalization trend and increasing data requirements among medium and small enterprises. These businesses often lack the expertise, funding, and scale to build and manage their IT infrastructure, leading them to seek solutions from independent data center operators. Providers offer various services such as colocation, managed hosting, and cloud solutions tailored to their needs. Key market indicators include increasing internet penetration, digital economy expansion, and data sovereignty regulations. Market sizes are expected to grow exponentially, with top-down approaches and forecasting techniques like exponential trend smoothing used to estimate future growth.

Furthermore, cost savings, scalability, and flexibility are primary drivers for businesses and individuals. Edge computing, real-time data processing, and lower latency are essential for specific industries like autonomous vehicles. Sustainability goals, renewable energy, and energy efficiency are also crucial factors influencing the market. Investors, including infrastructure investors, private equity buyers, and cloud companies, are increasingly interested in data center investments due to attractive price-to-earnings ratios and potential acquisitions. Data center operations involve managing facilities, power and connectivity, and cooling systems, with energy consumers seeking carbon-free energy supplies and renewable energy sources.

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Market Dynamics

The data center market size in Europe is expanding due to advancements in cooling efficiency, power reliability, and data security. Optimized space utilization, energy savings, and scalability range drive growth, while network speed, bandwidth capacity, and uptime rate ensure high-performance operations. Enhanced heat management, hardware durability, and maintenance access improve system longevity. Cost optimization, backup systems, and load balancing support operational resilience. Innovations in noise control, air quality, and cable organization enhance infrastructure management

London remained Europe's largest data center market in 2024, with total inventory in the British capital surpassing 1,000 megawatts as of the fourth quarter of the year. Frankfurt was the second-largest market, followed by Amsterdam.

The Europe Data Center Cooling Market Report is Segmented by Cooling Technology (Air-Based Cooling (CRAH, Chiller and Economizer, Cooling Tower (Direct, Indirect, and Two-Stage Cooling), and Others)) and Liquid-Based Cooling (Immersion Cooling, Direct-To-Chip Cooling, and Rear-Door Heat Exchanger)), End-User Vertical (IT & Telecom, Retail & Consumer Goods, Healthcare, Media & Entertainment, Federal & Institutional Agencies, and Other End Users), and Geography (the United Kingdom, Germany, Russia, Denmark, Norway, The Netherlands, Spain, Poland, Switzerland, Austria, Belgium, France, Italy, Ireland, Sweden, and the Rest of Europe). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Over the last two observations, the revenue is forecast to significantly increase in all segments. As part of the positive trend, the indicator reaches the maximum value for all three different segments at the end of the comparison period. Particularly noteworthy is the segment Network Infrastructure, which has the highest value of 71.52 billion euro. Find further statistics on other topics such as a comparison of the revenue in Australia and a comparison of the revenue in Japan. The Statista Market Insights cover a broad range of additional markets.

The Europe Data Center Server Market is Segmented by Form Factor (Blade Sever, Rack Server, and Tower Server), by End User (IT & Telecommunication, BFSI, Government, Media and Entertainment, and Other End Users), and by Geography (France, United Kingdom, Sweden, Austria, Belgium, Germany, Ireland, Italy, Norway, Poland, Spain, Switzerland, Netherlands, Denmark, and Rest of Europe). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The European green data center market is forecast to be worth almost 50 billion U.S. dollars in 2030, up from an expected 14.57 billion U.S. dollars in 2023. Germany is set to remain the largest market, followed by the United Kingdom and France.

Further information on the green data center market can be found here.

Europe Data Centers Interconnect Companies and the market is segmented by country (Germany, UK, France and Rest of Europe)

Dublin had a reported 270 megawatts (MW) of data center capacity under construction as of the first half of 2023, the most of any European market. Meanwhile, Frankfurt had the most capacity planned for future construction, ahead of London, which remains the largest data center market in the region. 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 78 billion euro European market. London is the largest of these markets, with its total inventory of almost 1,000MW 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.

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Data Center Market Size 2025-2029

The data center market size is forecast to increase by USD 535.6 billion, at a CAGR of 15.6% between 2024 and 2029.

The global data center market growth is fueled by the rapid adoption of cloud computing, driven by businesses seeking scalable infrastructure, and the increasing demand for real-time data processing as IoT and AI technologies expand across industries. These drivers highlight the shift toward digital solutions and the need for robust IT systems.
This report provides a clear view of market size, growth forecasts, and key segments like colocation and hyperscale data centers, offering practical insights for strategy development, operational efficiency, and client engagement. It digs into trends such as the rise of sustainable data center designs and addresses challenges like rising energy costs that strain budgets and planning. For businesses aiming to thrive in the global data center market, this report delivers essential data and analysis to navigate technological shifts and operational hurdles effectively.

What will be the Size of the Data Center Market During the Forecast Period?

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In today's digital world, data centers play a crucial role in supporting the increasing demand for cloud computing, artificial intelligence (AI), machine learning, the Internet of Things (IoT), and other data-intensive applications. Businesses and individuals rely on data centers to store, process, and analyze vast amounts of data in real-time, enabling personalized experiences and driving innovation in various industries, including online retail and e-commerce. IT infrastructure, such as data center systems, has evolved significantly, offering cost savings, scalability, and flexibility through cloud technology. AI and machine learning algorithms are integrated into these systems, enabling predictive analytics and automation, further enhancing efficiency and performance.
The data center market is evolving with trends such as hyperscale data centers, cloud data centers, and edge computing, enhancing data processing capabilities. Data center automation and AI integration are improving operational efficiency, while green data centers focus on sustainability. Colocation services and data center security are critical for businesses, as virtualization in data centers supports flexible infrastructure. The market also sees growth in modular, energy-efficient data centers with advanced cooling solutions. Multi-cloud data centers and 5G data centers drive connectivity, and data center migration and DCaaS offer scalable solutions with high-density computing.

How is this Data Center Industry segmented and which is the largest segment?

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

    Canada
    US


  APAC

    China
    India
    Japan


  Europe

    Germany
    UK
    France
    Italy


  South America

    Brazil


  Middle East and Africa

By Component Insights

The IT infrastructure segment is estimated to witness significant growth during the forecast period. The data center IT infrastructure market encompasses all IT hardware, software, and solutions necessary for establishing and expanding data centers. This segment comprises server infrastructure, storage infrastructure, software-defined data centers (SDDC), network infrastructure, converged infrastructure, backup and recovery software, automation software, and data center infrastructure management (DCIM) solutions. The escalating demand for increased computing power and storage capacity is driving the adoption of advanced IT infrastructure in data centers. Enterprises worldwide are transitioning from on-premises data centers to cloud-based alternatives, leading to heightened demand for servers, storage infrastructure, and related technologies. This trend is anticipated to persist throughout the forecast period, fueled by the growing popularity of online retail, e-commerce, and the need for personalized data processing and analysis for various workloads. Cloud technologies are revolutionizing the way businesses manage and store their data, enabling faster processing speeds and enhanced

The Europe Data Center Storage Market Report is Segmented by Storage Technology (Network Attached Storage (NAS), Storage Area Network (SAN), and Direct Attached Storage (DAS)), Storage Type (Traditional Storage, All-Flash Storage, and Hybrid Storage), End User (IT & Telecommunication, BFSI, Government, Media & Entertainment, and Other End Users), and Country. The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Europe Data Center Server market size is USD 18462.66 million in 2024 and will expand at a compound annual growth rate (CAGR) of 9.1% from 2024 to 2031.

The Europe data center power market by investment 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%.

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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 increasing demand for data center colocation facilities due to the digital transformation and cloud adoption by businesses. This trend is particularly prominent among global enterprises seeking to improve operational efficiency, reduce IT costs, and enhance data security. Additionally, infrastructure innovations, such as the adoption of artificial intelligence, machine learning, and the Internet of Things, are fueling the need for larger, more powerful data centers. 
Another key driver is the consolidation of data centers, as companies look to optimize their IT infrastructure and reduce operational complexity. This consolidation is leading to the development of large-scale hyperscale data centers, which offer economies of scale and improved efficiency. However, challenges remain, including the high capital and operational costs associated with building and maintaining hyperscale data centers, as well as the need to ensure reliable power and cooling infrastructure. 
Companies seeking to capitalize on this market opportunity must navigate these challenges effectively, while also staying abreast of emerging technologies and trends. Overall, the market presents significant growth potential for investors and businesses alike, with opportunities in both the public and private sectors.

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Capital expenditure for infrastructure development and maintenance is a significant market restraint. Sustainability is another challenge, with the need for green data centers becoming increasingly important. Solarvest and Centexs are two companies focusing on this area, offering renewable energy for data centers. Market dynamics are constantly evolving, with financial services and cloud providers playing a crucial role in shaping the market. The market is expected to continue growing, driven by the increasing adoption of cloud services and the need for efficient data management. NGFWs (Next-Generation Firewalls) are essential infrastructure components in hyperscale data centers, providing network security and threat protection.

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

  Critical infrastructure
  Support infrastructure


End-user

  BFSI
  Energy
  IT
  Others


Component

  Solutions
  Service


Geography

  North America

    Canada
    US


  APAC

    China
    India
    Japan


  Europe

    Germany
    UK
    France
    Italy


  South America

    Brazil


  Middle East and Africa

By Type Insights

The critical infrastructure segment is estimated to witness significant growth during the forecast period. The market encompasses the infrastructure, components, and size required for large-scale data processing in financial services, cloud providers, and other industries. Servers, a crucial infrastructure component, facilitate application processing and data transfer. Modern servers feature dual power supplies, redundant array of independent disks systems, and error-correction memory, ensuring reliability and durability. Hot-swapping and cooling techniques mitigate overheating. Mission-critical servers offer fault-tolerance and low failure rates for optimal data center uptime. Remote management software enables power configuration and rebooting, while virtualization increases computing resource utilization.

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The critical infrastructure segment was valued at USD 33.10 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In North America, the US dominates data center spending due to the presence of numerous Fortune 500 companies, including Alphabet Inc. (Google), Microsoft Corp., Facebook Inc., Apple Inc., and Amazon.Com Inc. (Amazon Web Services). The country's investments in data center construction continue to grow, with a focus on sustainable power hotspots for server farm operations. Hyperscale data centers in North America are primarily managed by Content Security Policies (CSPs), colocation providers, and media transmission

Europe Datacenters market size will be USD 58573.56 million in 2024 and will expand at a compound annual growth rate (CAGR) of 9.8% from 2024 to 2031.

In 2023, London was Europe's largest data center market, with live power supply capacity of 1.2 gigawatts, 326 megawatts under construction and 2.4 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 2.7 megawatts.

The Europe floating data center market is expected to reach $14.73 million by 2033 from $4.33 million in 2023, exhibiting a robust CAGR of 13.03% during the 2023-2033.

The Europe Data Center Physical Security Market Report is Segmented by Solution Type (Video Surveillance and Access Control Solutions), Service Type (Consulting Services and Professional Services), End User (IT and Telecommunication, BFSI, Government, Healthcare, and Other End Users), and Country. The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.