The Western Europe data center construction market is expected to reach USD 14.41 billion by 2029 from USD 9.01 billion in 2023, growing at a CAGR of 8.14%.

Snapshot img { margin: 10px !important; } The data center construction market size in Western Europe is expected to grow by USD 6.72 billion and record a CAGR of 9.18% during 2021-2025.

This post-pandemic data center construction market in Western Europe report has assessed the shift in consumer behavior and has identified and explored the upcoming trends and drivers that the vendors can capitalize on to support prompt business decisions. In this data center construction market in Western Europe analysis report, key drivers such as the release of general data protection regulation have been discussed with emerging growth regions, which will offer immense business opportunities. Our analysts have also identified challenges such as the impact of Brexit, which will impede market growth. With these insights, the vendors can recreate their plan of action to obtain growth opportunities in the future.

What will the Data Center Construction Market Size in Western Europe be in 2021?

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Who are the Key Vendors in the Data Center Construction Market in Western Europe?

The data center construction market in Western Europe forecast report provides insights on complete key vendor profiles and their business strategies to reimage themselves. The profiles include information on the production, competitive landscape, sustainability, and prospects of the leading companies including:

ABB Ltd.
AECOM
Cisco Systems Inc.
Dell Technologies Inc.
Eaton Corporation Plc
Hewlett Packard Enterprise Development LP
Honeywell International Inc.
International Business Machines Corp.
Ove Arup & Partners International Ltd.
Schneider Electric SE

The data center construction market in Western Europe is fragmented and the vendors are deploying various growth strategies to compete in the market. Click here to uncover other successful business strategies deployed by the vendors.

This data center construction market in Western Europe report further entails segmentation by construction type (electrical construction, general construction, and mechanical construction) and geography (the UK, Germany, the Netherlands, France, and the rest of Western Europe). View our sample report to gather market insights on the segmentations.

To make the most of the opportunities, vendors should focus on fast-growing segments, while maintaining their positions in the slow-growing segments. Fetch actionable market insights on post COVID-19 impact on each product and service segments.

Which are the Key Regional Markets for Data Center Construction Market in Western Europe?

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The report offers an up-to-date analysis of the geographical composition of the market. The rest of Western Europe will record a fast growth rate during 2021-2025, owing to which the region should offer several growth opportunities to market vendors. The increasing investments in green data centers will significantly influence data center construction market growth in Western Europe. To garner further competitive intelligence and regional opportunities in store for vendors, view our sample report. This report provides estimations of the contribution of all regions to the growth of the data center construction market size in Western Europe.

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What are the Key Factors Covered in this Data Center Construction Market in Western Europe Report?

CAGR of the market during the forecast period 2021-2025
Detailed information on factors that will drive data center construction market growth in Western Europe during the next five years
Precise estimation of the data center construction market size in Western Europe and its contribution to the parent market
Accurate predictions on upcoming trends and changes in consumer behavior
The growth of the data center construction market in Western Europe
A thorough analysis of the market’s competitive landscape and detailed information on vendors
Comprehensive details of factors that will challenge the growth of data center construction market vendors in Western Europe 

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    Data Center Construction Market Scope in Western Europe 




    Report Coverage


    Details




    Page number


    120




    Base year


    2020




    Forecast period


    2021-2025




    Growth momentum & CAGR


    Accelerate at a CAGR of 9%




    Market growth 2021-2025


    $ 6.72 billion




    Market structure


    Fragmented




    YoY growth (%)


    7.21




    Regional analysis


    UK, Germany, The Netherlands, France, and Rest of Western Europe




    Competitive landscape

The size of the Ireland Data Center Construction market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 8.00% during the forecast period.Ireland Data Center Construction Market The Ireland Data Center Construction Market is witnessing significant growth as there is an immense amount of demand for the storage and processing of data. Data centers are structures designed to store computer systems and networking equipment. They could be said to be the infrastructure for cloud, internet, and data storage, which is essential for the use of businesses and organizations of all sizes in the current world of digitization. Such factors are the reasons behind Ireland's increasing popularity as a hotspot for data center construction in the world. Its strategic location in North West Europe makes it an attraction point for connection to other major data centers in the region and around the world. Additionally, it has a highly skilled and professional workforce and a stable political environment as well as a favorable tax regime that puts it on the investment list of most international companies. This suggests that the need for data center capacity in Ireland is driven more by the increasing trend towards the use of cloud services, the growth of the Internet of Things, and the increasing digitization of other industries, among other causes. As more and more organizations seek to take advantage of the benefits offered by cloud-based solutions and big data analytics, robust and scalable data center infrastructure is a given. Trends in the Ireland data center construction market thus well align to the predictable growth of the sector in the near future. Recent developments include: January 2022: The company announced its new construction development in North and South Dublin, which is expected to be operational in 2023 and 2024, respectively., September 2019: CyrusOne announced breaking ground for its first data center campus in Dublin. Located in Grange Castle Business Park South, the first phase of the advanced facility was ready for occupation in Q4 2020. When complete, the site will have a total power of 74MW and is already responding to customer requests for space.. 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: IT and Telecom to have significant market share.

The size of the Russia Data Center Construction market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 14.17% during the forecast period.The Russian construction market of data centers is growing day by day, with the requirement for digital infrastructure development and country focus on technological progress. Data centers are special-purpose facilities which provide computer systems and networking equipment for the storage, processing, and distribution of data in a safe and reliable environment. Practically every complementary natures of industries related to finance, health care, telecommunications, and e-commerce support this service. Building activities on data centers in the Russian market are indeed taking off. The reasons will be two fold: first, for the impulse of the government to foster a digital transformation and a digital economy, more significant infrastructure is called for. Second, with the extensive implementation of cloud computing, big data analytics, and artificial intelligence technologies, there is an enormous amount of data that needs to be stored and processed quite efficiently. More and more people surf the web as the speed grows, and brisk developments in the e-commerce sphere, making it a more popular thing with reliable data center services. The geopolitical situation also stimulates the development of the Russian market of data centers. Organizations are compelled to have their own centers of data or to enter a local service provider in order not to face the problem of lack of compliance with the regulation of localization of data. The stated tendency makes the demand for construction of data centers in Russia increase even more. In the nutshell, data center construction in Russia is likely to have a good scale up in the future. The country is expected to continue driving investments in digital infrastructure and technology hence the demand for services in the coming years. Recent developments include: October 2022: DataPro Moscow II, the first data center in Eastern Europe with a Tier-IV integrity level, was opened by the DataPro corporation, an independent operator of data processing facilities in Russia. The new DataPro data center can accommodate 1,600 racks in total. The initial batch of 800 racks is currently in use. By the end of 2020, the second lot of 800 racks will be usable. It will enable DataPro to hold second place in the Russian commercial data-center market, with 3,600 racks overall in its data centers., September 2022: Yandex announced its plans to construct a brand-new 63MW data center in western Russia's Kaluga Oblast. The brand-new building will be situated in Kaluga's Grabtsevo Industrial Park, around 100 miles south of Moscow. With a 130,000 square meter footprint and 63 MW of power, the new data center can accommodate more than 3,800 server racks with a 15 kW load.. 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: IT and Telecom to Have Significant Market Share.

Western Europe and Nordic data center market to reach USD 45 billion by 2026, growing at a CAGR of 4% from 2021 to 2026. The data center market in Western Europe and Nordic consists of several IT infrastructure, electrical, mechanical, and general construction service providers.

Western Europe and Nordic hyperscale data center market size to generate revenues of $29 billion by 2023, growing at a CAGR of 10% during 2018-2023. The general construction segment to hold the maximum market share

Data Center Project Services Market Outlook

According to our latest research, the global Data Center Project Services market size is valued at USD 23.8 billion in 2024, with a robust compound annual growth rate (CAGR) of 7.2% anticipated from 2025 to 2033. This growth trajectory is projected to elevate the market to approximately USD 44.7 billion by 2033. The market’s expansion is being primarily driven by the exponential increase in data generation, rapid digital transformation across industries, and the urgent demand for reliable, scalable, and efficient data center infrastructure. As per our latest research, the convergence of cloud computing, the proliferation of IoT devices, and the surging adoption of advanced analytics are catalyzing the need for comprehensive project services to support the evolving data center landscape.

One of the most significant growth factors fueling the data center project services market is the global surge in cloud adoption. Enterprises are rapidly migrating workloads to cloud environments, necessitating the construction and modernization of data centers to accommodate hybrid and multi-cloud strategies. This shift is not only increasing the volume of data center projects but also raising the complexity of design, construction, and maintenance activities. Furthermore, the demand for low-latency data processing, driven by applications such as artificial intelligence, edge computing, and real-time analytics, is accelerating the deployment of edge and hyperscale data centers, thereby boosting the requirement for specialized project services.

Another crucial driver is the intensifying focus on sustainability and energy efficiency within data center operations. With mounting regulatory pressures and corporate sustainability goals, organizations are investing in green data center designs, renewable energy integration, and advanced cooling solutions. This trend is significantly influencing the data center project services market, as service providers are required to deliver expertise in sustainable construction, energy management, and compliance with global standards. As a result, there is heightened demand for consulting, design, and maintenance services that can ensure data centers meet stringent environmental and operational benchmarks while minimizing total cost of ownership.

The rapid evolution of digital infrastructure across emerging economies is also playing a pivotal role in market growth. Countries in Asia Pacific, Latin America, and the Middle East are witnessing substantial investments in digital transformation, driven by expanding internet penetration, rising demand for digital services, and supportive government initiatives. This is leading to a surge in new data center projects, particularly colocation and hyperscale facilities, which require end-to-end project management, construction, and commissioning services. The growing need for localized data processing, fueled by data sovereignty regulations, is further propelling the demand for data center project services in these regions.

Regionally, North America remains the largest market for data center project services, underpinned by the presence of major cloud service providers, hyperscale operators, and a mature digital ecosystem. However, the Asia Pacific region is emerging as the fastest-growing market, supported by rapid urbanization, increasing IT investments, and the proliferation of smart city initiatives. Europe is also experiencing steady growth, driven by stringent data protection regulations and the expansion of digital infrastructure in Western and Northern Europe. Meanwhile, Latin America and the Middle East & Africa are witnessing rising investments in new data center projects, reflecting the growing demand for digital connectivity and cloud services in these regions.

Service Type Analysis

The service type segment in the data center project services market encompasses a broad spectrum of offerings, including Design & Consulting, Construct

The multi-tenant data center market is experiencing robust growth, driven by the increasing adoption of cloud computing, the rising demand for data storage and processing, and the need for businesses to improve IT infrastructure efficiency and scalability. The market's Compound Annual Growth Rate (CAGR) of 11.36% from 2019 to 2024 indicates significant expansion. This growth is fueled by several key trends including the migration of workloads to the cloud, the increasing adoption of hybrid cloud strategies, and the growing need for edge computing to support real-time applications and reduce latency. Significant market segmentation exists across solution types (retail and wholesale colocation), application deployment (public and private cloud), and end-user industries (IT & Telecom leading the pack, followed by Healthcare, Defense, Manufacturing, and Retail). While the exact market size for 2025 isn't provided, considering the 11.36% CAGR and assuming a reasonably sized market in 2024, a logical estimate for the 2025 market size places it in the billions, reflecting substantial growth in recent years. The continued expansion of data-intensive applications across sectors will further drive demand in the coming years. Growth is expected to continue through 2033, spurred by factors such as the proliferation of IoT devices generating vast amounts of data, the increasing demand for higher bandwidth and lower latency connections, and the ongoing evolution of cloud technologies. However, challenges such as high initial investment costs, concerns about data security and privacy, and the need for skilled professionals to manage these complex systems act as potential restraints. Despite these challenges, the long-term outlook for the multi-tenant data center market remains optimistic, with continued growth projected across all major regions (North America, Europe, Asia-Pacific, Latin America, and the Middle East). Leading players like Equinix, NTT Communications, and IBM are actively investing in expanding their capacity and capabilities to meet this surging demand, driving further market consolidation and innovation. Recent developments include: October 2022: Google intends to establish its first data center in Japan by 2023. The company declared that this data center would be based in Inzai City, Chiba, and would be funded by a USD 730 million infrastructure fund until 2024. Also, the company collaborates with colocation facility providers like Equinix to power these regions for Google Cloud customers. However, it is currently building its own data center to support its services, including YouTube, Gmail, and the rest., February 2022: Kao Data, the specialist operator and developer of high-performance data centers for enterprise, cloud, HPC, and AI, has declared the availability of a 16 megawatt (MW) carrier-neutral data center in Slough, West London. The launch marks a whole new beginning for Kao Data following the recent investment of approximately GBP 130 million from the global infrastructure business Infratil Limited. It would expand its market-leading, ultra-sustainable data center platform into this globally significant data center hub. Highly secure, the carrier-neutral data center will adhere to Kao Data's pioneering design and sustainability principles, providing an energy-efficient home for high-performance colocation.. Key drivers for this market are: Increased Demand For Green Data Centers, Growing Internet Data Traffic. Potential restraints include: Consolidation of Data Centers, Data Security Concerns. Notable trends are: Retail colocation is Expected to Hold Significant Growth Rate.

The Russia data center market is anticipated to reach a market size of XX million by 2033, exhibiting a CAGR of 4.87% during the forecast period. The growth of the market is attributed to the increasing adoption of cloud computing, big data, and the Internet of Things (IoT), which is driving the demand for data center services. Additionally, government initiatives to promote digital transformation and the establishment of data localization laws are further contributing to the market growth. Key trends in the Russia data center market include the growing adoption of hyperscale data centers, the increasing demand for colocation services, and the emergence of edge data centers. Moreover, the market is segmented based on size, tier type, absorption, colocation type, and end user. The major players in the market include Nekstremum LLC, Rosenergoatom, IXELERATE LLC, Yandex Cloud LLC, MTS PJSC (MTS Group), Selectel Ltd, Linxdatacenter, Rostelecom, Stack Net (Stack Group), 3Data, DataPro, and RackStore. The Russia data center market is projected to grow from $1,227.42 Million in 2023 to $1,962.20 Million by 2029, exhibiting a CAGR of 7.1% during the forecast period. Recent developments include: October 2022: DataPro Moscow II, the first data center in Eastern Europe with a Tier-IV integrity level, was opened by the DataPro corporation, an independent operator of data processing facilities in Russia. The new DataPro data center can accommodate 1,600 racks in total. The initial batch of 800 racks is currently in use. By the end of 2020, the second lot of 800 racks will be usable. It will enable DataPro to hold second place in the Russian commercial data-center market with 3,600 racks overall in its data centers.September 2022: Yandex plans to construct a brand-new 63MW data center in western Russia's Kaluga Oblast. The brand-new building will be situated in Kaluga's Grabtsevo Industrial Park, around 100 miles south of Moscow. With a 130,000 square meter footprint and 63 MW of power, the new data center can accommodate more than 3,800 server racks with a 15 kW load.May 2022: The Russian data center company 3data and the investment firm Alias Group will build a data center in Krasnodar. A new facility will open in the Krasnodar Territory, according to 3data. According to the business, the facility will open around the end of 2023 under a franchise agreement with the investment firm Alias Group.. Key drivers for this market are: Increasing Automation in the Security Screening Industry, Especially to Detect Advanced Threats, etc., Upsurge in Terror Activities Across the Region; Increasing Government Initiatives on Security Inspection in Schools and Colleges; Increasing Government Initiatives for Smart Cities. Potential restraints include: Supply Chain Issues Caused By Geopolitical Scenario and the COVID-19 Pandemic, etc., High Installation and Maintenance Costs. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.