As of March 2025, 529 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 5,000 facilities.

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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

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.

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.

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.

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 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.

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.

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.

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).

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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

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.

The Europe data center construction market by investment was valued at USD 11.60 billion in 2024 and is expected to reach USD 32.27 billion by 2030, growing at a CAGR of 18.58% during the forecast period.

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 European data center market is experiencing robust growth, driven by the increasing adoption of cloud computing, the proliferation of big data analytics, and the rising demand for digital services across various sectors. The market is segmented by data center size (large, massive, medium, mega, small), tier type (Tier 1 & 2, Tier 3, Tier 4), absorption (utilized/non-utilized), colocation type (hyperscale, retail, wholesale), and end-user industry (BFSI, cloud, e-commerce, government, manufacturing, media & entertainment, IT, and others). The United Kingdom, Germany, France, and other key European nations are significant contributors to this market expansion, fueled by substantial investments in digital infrastructure and supportive government policies. The market's growth trajectory suggests a continued upward trend, with a projected Compound Annual Growth Rate (CAGR) that reflects both the underlying digital transformation and the increasing need for reliable, scalable, and secure data storage and processing capabilities. Competition is fierce, with established players like Equinix, Digital Realty, and Global Switch alongside other significant regional and global providers, leading to ongoing innovation in technologies and service offerings. The forecast period (2025-2033) anticipates consistent growth, propelled by factors such as the expanding adoption of 5G networks, the increasing use of artificial intelligence and machine learning, and the ongoing digitalization across all sectors of the European economy. While some restraints, such as energy costs and regulations, may exist, the overall market outlook remains highly positive, with opportunities for both established players and new entrants. The diversification of end-user segments further solidifies the market's long-term prospects, signaling a resilient and expanding sector within the broader European technology landscape. Specific growth rates within sub-segments will depend on the rate of adoption of advanced technologies in each sector. 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.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The European data center rack market is experiencing robust growth, driven by the increasing adoption of cloud computing, big data analytics, and the burgeoning digital economy across the region. The market, valued at approximately €[Estimate based on "XX Million" and currency conversion, for example: €1500 million] in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 8.80% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, the substantial investments by hyperscale data center operators and enterprises in expanding their IT infrastructure to meet the growing demand for data storage and processing capacity are significantly boosting the market. Secondly, the rising adoption of edge computing, which necessitates the deployment of numerous smaller data centers closer to end-users, is creating new opportunities for data center rack providers. Furthermore, the increasing focus on energy efficiency and sustainability within the data center industry is driving demand for racks with improved cooling and power management capabilities. Market segmentation reveals that the full-rack segment holds a significant share, driven by the need for high storage capacity and server density in large-scale data centers. However, the quarter-rack and half-rack segments are also witnessing notable growth fueled by the rising popularity of smaller-scale data centers and edge deployments. The IT & Telecommunication sector is the largest end-user segment, followed by the BFSI (Banking, Financial Services, and Insurance) sector. Germany, the UK, and France represent the key markets within Europe, benefiting from a robust digital infrastructure and a concentrated presence of major data center operators. However, growth is expected across all specified European countries as digital transformation initiatives continue. Competitive pressures among established vendors like Eaton Corporation, Rittal, and Schneider Electric, alongside emerging players, are further shaping market dynamics through innovation and pricing strategies. Despite potential restraints such as supply chain challenges and fluctuations in raw material prices, the overall market outlook for data center racks in Europe remains positive over the forecast period. 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.. Notable trends are: IT and Telecom to have significant market share.

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.

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 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.

The Europe hyperscale data center market size was valued at USD 31.39 billion in 2023 and is expected to reach USD 45.65 billion by 2029, growing at a CAGR of 6.44%