Europe Data Centre Market 2024-2030

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    EUROPE DATA CENTRE MARKET

     

    KEY FINDINGS

    • Europe is the second-largest data centre market in the world, after North America. 
    • The growth of the Europe data centre market is being driven by a number of factors, including the increasing adoption of cloud computing, artificial intelligence (AI), and the Internet of Things (IoT).
    • The UK, Germany, France, and the Netherlands are the largest data centre markets in Europe. 
    • Hyperscale data centers are large, multi-tenant data centers that are typically operated by cloud providers. These data centers are able to offer economies of scale and are therefore more cost-effective for cloud providers to operate.
    • Colocation is when a company rents space in a data center to house its own IT infrastructure. This is a popular option for companies that want to avoid the upfront costs of building and managing their own data centers.
    • The Europe data centre market is facing a number of challenges, including the rising cost of energy, the shortage of skilled IT workers, and the need for more sustainable data centre operations.
    • The future trends for the Europe data centre market include the increasing adoption of edge computing, the use of artificial intelligence to optimize data centre operations, and the development of more sustainable data centres.
    • There are a number of key investment opportunities in the Europe data centre market, including investments in hyperscale data centres, colocation facilities, and data centre infrastructure.
    • The Europe data centre market is highly competitive. The major players in the market include Equinix, Digital Realty, NTT, and Vodafone.
    • The Europe data centre market is expected to remain a high-growth market for the next several years. The increasing demand for cloud computing, AI, and IoT will continue to drive growth in the market.

     

    EUROPE DATA CENTRE MARKET OVERVIEW

    • Increasing adoption of cloud computing: Cloud computing is a rapidly growing industry, and businesses of all sizes are moving their IT infrastructure to the cloud. This is creating a strong demand for data centre space.
    • Artificial intelligence (AI) and the Internet of Things (IoT): AI and IoT are generating massive amounts of data that need to be stored and processed. This is creating further demand for data centre space.
    • Data sovereignty concerns: Businesses are increasingly concerned about the security and privacy of their data. This is leading to a demand for data centres that are located in Europe.
    • Hyperscale data centres: Hyperscale data centres are large, multi-tenant data centres that are typically operated by cloud providers. These data centres are able to offer economies of scale and are therefore more cost-effective for cloud providers to operate.
    • Edge computing: Edge computing is the practice of processing data close to where it is generated. This can reduce latency and improve the performance of applications.
    • Sustainable data centres: There is a growing focus on sustainability in the Europe data centre market. Data centres are large energy consumers, and businesses are looking for ways to reduce their environmental impact.

     

    EUROPE DATA CENTRE MARKET – INTRODUCTION

    Europe Data Centre Market is the physical entity that an organization uses to store the data, information and software that they use to run their industry. The need for a data centre for companies is not a new concept, because of the introduction of electronic media and basic computers in the companies In the old era used to keep their records and important documents in a well-designed room.

     

    The Europe Data Centre Market is important to running a business or enterprise to perform and support suitable activities like Email and file sharing, Applications and software, Enterprise resource planning and database, Big data calculation, Communication and other services.

     

    Important components of that Europe data center market include switches, firewalls, routers, storage systems, servers, and cooling systems. The location of the data center is also an important aspect when deciding. The evolution of big data centers came in the late 90s, after that, the number of data centers has continuously increased as private as well as government agencies both started to invest and use the data center for personal or public use.

     

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    Adopted standards for the design and infrastructure of data centres come under below mentioned category;

    • Tier 1: Basic site infrastructure: It has single-capacity components and a single, no redundant distribution path, providing limited protection in physical events
    • Tier 2: Redundant-capacity component site infrastructure: It has redundant-capacity components and a single, no redundant distribution path.
    • Tier 3: Concurrently maintainable site infrastructure: This data center protects against almost all physical events, providing redundant-capacity components and multiple independent distribution paths. Each component can be removed or replaced without disrupting services to end users.
    • Tier 4: Fault-tolerant site infrastructure: This data center provides the highest levels of fault tolerance and redundancy. Redundant-capacity components and multiple independent distribution paths enable concurrent maintainability and one fault anywhere in the installation without causing downtime.

     

    To know more about US Data Centre Market, read our report

     

    EUROPE DATA CENTRE MARKET DYNAMICS

    SI No Timeline Company Developments
    1 February 2023: Equinix Equinix acquired 100% of the issued share capital of Maincubes, a leading data center provider in the Netherlands, for an enterprise value of €935 million. The acquisition will expand Equinix’s data center footprint in Europe and provide it with access to Maincubes’ expertise in hyperscale data center development and operations.
    2 March 2023: Digital Realty Digital Realty acquired CyrusOne for US$15.4 billion. The acquisition will create a global data center REIT with a combined portfolio of over 280 data centers in 23 countries.
    3 April 2023: Global Switch  Global Switch acquired data centers in London and Madrid from NTT Ltd. for £330 million. The acquisition will expand Global Switch’s data center footprint in Europe and provide it with access to NTT Ltd.’s customer base.
    4 May 2023: Vantage Data Centers Vantage Data Centers acquired a 12.5% stake in EdgeConneX, a provider of edge data centers in Europe. The investment will provide Vantage with access to EdgeConneX’s data center portfolio and expertise in edge computing.
    5 June 2023: Iron Mountain Iron Mountain acquired data centers in London, Paris, and Frankfurt from CyrusOne for US$2 billion. The acquisition will expand Iron Mountain’s data center footprint in Europe and provide it with access to CyrusOne’s customer base.
    6 July 2023: Digital Realty Digital Realty acquired a data center in Frankfurt from Equinix for €525 million. The acquisition will expand Digital Realty’s data center footprint in Germany and provide it with access to Equinix’s customer base.

     

    The Europe Data Centre Market consists of IT, Mechanical, electrical infrastructure providers. Companies like ABB, Eaton, and Schneider are major infrastructure players. According to the report of Uptime institute, there are almost 217 data centres distributed across Europe (29 countries) which include local as well as global players that provide these services. Around 13 facilities in Europe are tier III certified.

     

    The data centre in western Europe typically uses a free cooling system, which includes evaporative cooling, adiabatic cooling, and free cooling chiller system also. This region has the most active market for data centre construction.

     

    The introduction of cloud storage systems has put the pressure on the data centre industries to increase the capacity of data centres that not only include the storage capacity but also includes space needed, cooling system, protection of client’s data, quick response periodic maintenance, etc.

     

    The inconvenient truth is that data centres are huge consumers of power – but equally inconvenient is the fact that without them, we would not be enjoying – relying on – the benefits of 5G, e-commerce, the Internet of Things, artificial intelligence (machine learning) and virtual reality.

     

    Given, therefore, that data centres are here to stay, it’s up to the companies – the facilities owners and operators – to make provisions to power them sustainably, cleanly, and with the least impact on the grid.

     

    As demand for data processing, management, and storage facilities continues to increase, driven by society’s increasing reliance on tech and its application in everyday life, data centre operators must focus on, and facilitate, the provision of clean and sustainable power to their facilities.

     

     Building suitable facilities to adequately address the regulations governing ultra-high security solutions should involve significant investment and expertise along with certified space available in its sustainable data centre campuses, plus proven and certified solutions. 

     

    Many companies have augmented their already high-security solutions to include type-approved self-contained security cage modules where the entire infrastructure including generator, dedicated independent power feed, UPS, and cooling systems are encapsulated to meet the high client demands.

     

     

     

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    EUROPE DATA CENTRE MARKET RECENT TRENDS

    • Hyperscale cloud providers are driving demand: Hyperscale cloud providers, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP), are expanding their data center presence in Europe. This is driving demand for data center capacity and putting pressure on traditional data center operators.
    • Colocation is becoming more popular: Businesses are increasingly choosing to colocate their IT infrastructure in data centers rather than building and operating their own. This is due to the benefits of colocation, such as reduced costs, increased scalability, and improved security.
    • Data centers are becoming more specialized: Data centers are being designed to meet the specific needs of different industries, such as healthcare, finance, and manufacturing. This specialization is leading to the development of new technologies and services.
    • Edge computing is becoming increasingly important: Edge computing is becoming increasingly important as businesses seek to reduce latency and improve performance for applications that require real-time data processing.
    • Sustainability is becoming a top priority: Data centers are large energy consumers, and there is growing pressure on operators to reduce their environmental impact. This is leading to the development of more energy-efficient data centers and the use of renewable energy sources.
    • Tax incentives: Some EU countries offer tax incentives to encourage businesses to invest in data centers. These incentives can make it more attractive for businesses to locate their data centers in Europe.
    • The General Data Protection Regulation (GDPR): The GDPR is a European Union (EU) regulation that sets out how businesses must collect, use, and store personal data. The GDPR has had a significant impact on the data center market, as businesses have had to invest in new technologies and processes to comply with the regulation.

     

    EUROPE DATA CENTRE MARKET NEW PRODUCT DEVELOPMENT

    • Equinix announced plans to acquire 100% of the issued share capital of Beulah International, an Australian data center developer, for A$2.8 billion. The acquisition will expand Equinix’s data center footprint in Asia-Pacific and provide it with access to Beulah International’s expertise in data center development.
    • NTT Ltd. announced plans to acquire a data center in London from Global Switch for £800 million. The acquisition will expand NTT Ltd.’s data center footprint in the UK and provide it with access to Global Switch’s customer base.
    • EIG Global Energy Partners acquired a 50% stake in Interxion, a carrier-neutral data center provider in Europe, for €7.8 billion. The investment will provide EIG with access to Interxion’s data center portfolio and expertise in data center operations.

     

    EUROPE DATA CENTRE MARKET SEGMENTATION

    The Europe Data CentreMarket can be segmented into following categories for further analysis.

     

    Europe Data Centre Market By Tier Type

    • Tier 1 Data Centre
    • Tier 2 Data Centre
    • Tier 3 Data Centre
    • Tier 4 Data Centre

    Europe Data Centre Market By End User

    • BFSI
    • Telecommunication and IT
    • Healthcare
    • Government and defense
    • Education
    • Energy
    • Manufacturing
    • Media and Entertainment
    • Others

    Europe Data Centre Market By Component

    • IT Infrastructure
    • Power Management
    • Cooing Solution
    • General construction
    • Others

    Europe Data Centre Market By Geographic Region

    • North America
    • Europe
    • China
    • Asia Ex China
    • ROW

     

    EUROPE DATA CENTRE MARKET COVID IMPACT

    COVID somehow showed the need to have more data centres across the globe. Due to the lockdown, the sudden increase in traffic has led the owners to realize that the data centres requirement will always increase in the coming future. However the coronavirus has shown some drawbacks of existing centers that may be overcome in new installed systems.

     

    The pandemic has made the online world even more valuable. The internet has become a lifeline for many businesses, and an outlet for individuals forced to self-isolate at home.

     

    Providers have experienced the same restrictions as other businesses around the world: Their staff and customers on-site face the same risks, and they are also part of wider supply chains, from those that deliver customers servers impacting demand and rollouts, to mechanical equipment manufacturers reliant upon cross-border regional and inter-regional access.

     

    Data centres adapted and – mostly – thrived in the pandemic Some projects were pushed back

     

    Throughout 2020, companies have essentially seen the impact of Covid-19 on the industry. The figures for supply growth and take-up still look positive across the Frankfurt, London, Amsterdam and Paris markets (and interest is also growing across second-tier locations) but some projects have been pushed back.

     

    Lock-down has meant restrictions in some locations in the number of construction staff allowed on site, customer site visits as well as operational team access. The industry has done a stellar job at keeping the lights on but has felt some challenges around supply. We don’t foresee this being a long-term challenge. Indeed, most projects that were shifted were only pushed back by a quarter or two at most. 

     

    Through Q2 of 2021, we saw the carrier-neutral wholesale and retail colocation market across Europe grow to 1,735 MW of supply, up 19 percent on the same quarter last year. Only about 355MW of this is available today with the market ending Q2 with around 20.5 percent vacancy.

     

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    EUROPE DATA CENTRE MARKET SIZE AND FORECAST

    The Europe Data Centre Market is estimated to be US $ XX Billion in 2023 and expected to grow at a CAGR of XX% by 2030. The key player in Europe data centre market has signed an agreement to make their facility carbon-neutral via a 100% renewable energy source by 2030.

     

    According to the Climate Neutral Data Centre Pact, almost 75% of energy supplied to data centres are renewable energy sources or carbon-free energy by 2025 end, then in the second phase, it will be 100% renewable energy sources.

     

    During a pandemic, the huge demand of data center originated as the data to be used and storage is increased suddenly, the sudden rise in online traffic by the user has increased, and the demand for cloud storage has increased as well, these are the key indicator that shows that the need of data centre is an important to result in steady growth and increase in level of investment in this market.

     

    The Europe data centre market has adopted the advanced, innovative, and efficient cooling system that is the basic need to run the data center in a proper manner. The server and cloud system has seen strong growth in the coming year. The demand for UPS has increased leading to the adoption of lithium–ion UPS systems due to their advantages. A few factors may contribute to the growth of data centre across the globe;

     

    • Introduction of innovative UPS battery technology
    • Showing an interest toward renewable energy sources
    • Cloud system adoption
    • Increase in the traffic of internet
    • An application that allows its user to store the data online only
    • Adoption of technology like Big Data and IoT

     

    The main focus of driving the Europe Data Centre Market is to prevent something from happening like a failure of a cooling system, breach the firewall by hackers. To overcome this problem companies like Huawei, International Business Machine(IBM), Eaton Corporation, Bladeroom, Cannon Technologies Ltd., Commscope Inc., Dell Inc., Flexenclosure AB, Schneider Electric, HPE Company.

     

    EUROPE DATA CENTRE MARKET RECENT TRENDS

    SI No Timeline Company Developments
    1 Q1-2022 Interxion Cloud neutral colocation data centre services Interxion’s new data center construction in Frankfurt of FRA16 is implemented by France based multi technological company SPIE.
    2 Q4-2021 Adista France based Adista and Datafarm Energy are partnered to use renewable energy sources of biogas powered in its new data center for the sustainable development.
    3 Q4-2021 Hiro Hiro developed micro data center boxes, The Edge Micro Data Centre (EMDC) for hospitals and also can be installed indoors and outdoors. The solid state boxes built for the EU Edge project can range from 1.5kW to 500kW.
    4 Q4-2021 Serverfarm  Data center developer and operator Serverfarm joined the Climate Neutral Data Center Pact in Europe to adopt climate neutral by 2030 and also joined Dutch Data Center Association.
    5 Q1-2021 Colt DCS Leading carrier neutral data centre operator, Colt DCS to use 100 percent renewable energy sources for its European operations by partnering with Colt Technology Services to reduce carbon emissions. 

     

    EUROPE DATA CENTRE MARKET COMPETITIVE LANDSCAPE

    SI No Timeline Company Developments
    1 Q1-2022 AtlasEdge European edge data center business provider AtlasEdge operates more than 100 data centers in Europe and acquired 12 data centers from Colt DCS to expand its data center business in the EU regions. 
    2 Q4-2021 AtlasEdge Data center solution provider Digital Realty Trust, invested in AtlasEdge with an undisclosed amount, to strengthen its market position in Europe. 
    3 Q4-2021 Digital 9 Infrastructure Stellium operated data centres at Newcastle, UK was acquired by digital infrastructure investment firm Digital 9 Infrastructure (D9) for EUR 15 million and it also bought its subsea fiber landing station. 
    4 Q4-2021 Partners Group Nordic data center services company from Iceland, is acquired by independent investment firm Partners Group to expand its market in and operations across the Nordic region.
    5 Q2-2021 CyrusOne CyrusOne’s revenue was $284.6 million for the second quarter, compared to $256.4 million for the same period in 2020, an increase of 11%. The increase in revenue was driven primarily by a 9% increase in occupied CSF and higher metered power reimbursements.
    6 Q2-2021 Coresite Coresite grew operating revenues to $162.1 million, an increase of 7.7% year over year and 2.8% sequentially and delivered net income of $0.59 per common diluted share, an increase of $0.07 year over year and $0.08 sequentially
    7 Q2-2021 Digital Realty In Q2 2021, Digital Realty reported revenues of $1.1 billion, unchanged from the previous quarter and a 10% increase from the same quarter last year, and adjusted EBITDA of $603m, a 2% decrease quarter-over-quarter.
    8 Q2-2021 QTS Realty In Q2 2021, QTS Realty reported revenue of $155m, an 18% increase year-over-year, and adjusted EBITDA of $87.7m, a 20% increase year-over-year. Therefore, the company’s EBITDA margin was 56.5% in Q2 2021, a ~120 bps improvement year-over-year.

     

    DigiPlex, a leading Nordic developer and operator of scalable, secure and sustainable data centres, has agreed to be acquired by affiliates of IPI Partners, LLC, a global investment platform focused exclusively on data centres and other technology and connectivity-related real assets

     

    DigiPlex is offering ultra-secure cages that are quick to deploy for Governments, institutions, global corporations, and other organizations that require adherence to the European Security Standard EN1627 and Resistance Class 4 (RC4) to manage and store data of extremely high importance or sensitivity.

     

    Biocore Environmental Ltd agreed to co-locate a biogas facility at Echelon DUB20 (Arklow) data centre site.

     

    EUROPE DATA CENTRE MARKET KEY PLAYERS

    S.No Company Name Established HQ, Country
    1 global switch 1998 United Kingdom
    2 NTT Global Data Centers 2000 London, United Kingdom
    3 QTS Realty Trust 2003 Kansas, United States
    4 DATA4 2006 Paris, France
    5 Colt DCS 1992 London, United Kingdom
    6 Digital Realty 2001 California, United States
    7 CoreSite 2001 Colorado, United States
    8 CyrusOne 2001 Texas, United States
    9 Equinix 1998 California, United States
    10 Bahnhof 1994 Uppsala, Sweden
    11 Cyxtera Technologies, Inc. 2017 Florida, United States
    12 Echelon Data Centers 2017 London, United Kingdom
    13 Etix Everywhere 2012 France
    14 Digiplex 2000 United Kingdom

     

    Sl no Topic
    1 Market Segmentation
    2 Scope of the report
    3 Research Methodology
    4 Executive Summary
    5 Average B2B Price, By Type
    6 Potential Opportunities For Client
    7 Factors driving the growth of the European data center market, including cloud computing, AI, and IoT adoption.
    8 An in-depth analysis of the data center markets in key European countries like the UK, Germany, France, and the Netherlands.
    9 An explanation of colocation services and their popularity among businesses.
    10 Analysis of major players in the market, such as Equinix, Digital Realty, NTT, and Vodafone.
    11 The impact of the General Data Protection Regulation (GDPR) on data center operations.
    12 An overview of key IT, mechanical, and electrical infrastructure providers in the European market.
    13 Insights into ultra-high security solutions and their importance for data center operators.
    14 How hyperscale cloud providers like AWS, Azure, and GCP impact traditional data center operators.
    15 How data centers are designed to meet specific industry needs, such as healthcare and finance.
    16 Market Size, Dynamics and Forecast by Tier Type, 2023-2030
    17 Market Size, Dynamics and Forecast by End user, 2023-2030
    18 Market Size, Dynamics and Forecast by Component, 2023-2030
    19 Market Size, Dynamics and Forecast by Geography, 2023-2030
    20 Competitive Landscape
    21 M&A in past 12 months
    22 Growth strategy of leading players
    23 Market share of vendors, 2023
    24 Company Profiles
    25 Unmet needs and opportunity for new suppliers
    26 Conclusion
     
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