Europe Data Center Storage - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Europe Data Center Storage Market size is estimated at USD 19.80 billion in 2024, and is expected to reach USD 27.5 billion by 2029, growing at a CAGR of 6.60% during the forecast period (2024-2029).

European data centers are clustered around FLAP markets, such as Frankfurt, London, Amsterdam, and Paris. However, there is limited scope for expansion in these expensive urban locations due to constraints on space, cost, and energy. This has also led to major DC construction in other European countries. The region has also been witnessing strong growth in storage with an increase in efficient infrastructure spending. The increasing investment to build data centers across European countries creates demand for flash memory as it is cost-effective, delivers high performance, is integrated with space and power savings, and provides better reliability than hard disks.

Key Highlights

• The upcoming IT load capacity of the European data center market is expected to reach 18K MW by 2029.
• The region's construction of raised floor area is expected to increase to 87.6 million sq. ft by 2029.
• The region's total number of racks to be installed is expected to reach 4.3 million units by 2029. The United Kingdom is expected to house the maximum number of racks by 2029.
• There are close to 210 submarine cable systems connecting Europe, and many are under construction. One such submarine cable that is estimated to start service in 2025 is SeaMeWe-6, which stretches over 19,200 kilometers with a landing point in Marseille, France.

Europe Data Center Storage Market Trends

IT and Telecom to Hold Significant Share

• In Europe, players in the telecommunications industry are faced with shrinking revenues and profitability, as well as the effects of regulatory pricing intervention and consolidation. The rapidly increasing 4G penetration and the 5G wave are encouraging telecom vendors to invest in the data center market. Swedish network provider Net4Mobility, a joint venture between local carriers Tele2 and Telenor, had plans to connect 90% of the nation's population to its 5G network by the end of 2023.
• The Netherlands has also quickly modernized with cutting-edge technology, solidifying its position as one of Europe's leading telecom markets. The goals of the EU Gigabit Society include providing all homes access to broadband networks with speeds of at least 100 Mbps, and the vast majority should be taking advantage of 1 Gbps by 2023. These goals are supported by the Dutch government as well.
• 5G is close to seven times better in terms of throughput compared to 4G, at 10 Gbs compared to 1.45 Gbs. With NVMe or SSD over HDD, such enterprise-level technology allows significant I/O throughput. The demand for NVMe is increasing in SSD servers and storage appliances, which is expected to drive the market during the forecast period.
• The transition to PCIe 4.0 technology is in full swing, and KIOXIA Europe GmbH is leading the way forward. Recently, the company announced that its lineup of CM6 and CD6 SeriesPCIe 4.0 NVM Express (NVMe) enterprise and data center solid state drives gained compatibility approval with Super Micro Computer Inc.'s PCIe 4.0-based platforms, including a wide range of enterprise-ready rackmount systems encompassing Ultra, WIO, BigTwin, FatTwin, SuperBlade, 1U/2U NVMe all flash arrays, GPU accelerated systems, and Super Workstations.
• In another recent development, Exascend and GLYN joined forces to bring Exascend's cutting-edge flash storage solutions to Europe, with GLYN distributing products in Northern, Central, Eastern Europe, and Benelux countries. This collaboration empowers businesses throughout Europe to leverage the potential of next-generation flash storage technology.

United Kingdom to Witness Significant Growth

• Brexit has shaken the UK cloud market, causing uncertainty for cloud providers regarding customer data storage and retrieval. As a result, European companies reliant on UK data centers are migrating their operations to the United Kingdom and other EU countries. Despite this, the cloud market in the United Kingdom is thriving. The surge in demand for cloud services in 2020 led to the launch of 10 new services, including cybersecurity offerings by Microsoft. AWS and Microsoft Azure remain the leading players in this growing market.
• The demand for edge data centers is growing with the implementation of commercial 5G networks in the United Kingdom. The United Kingdom is one of the most digitally advanced economies. The government invests in 5G and next-generation digital technologies to support businesses. In line with consumer demand, the cloud computing segment is expected to shift inherently to include the use of multi-cloud in enterprises.
• According to the Federation of Small Businesses (FSB), as of 2022, there were 5.5 million small businesses in the United Kingdom, accounting for 99.2% of the total business in the region. In addition, SMEs account for three-fifths of the employment and around half of the private sector turnover in the country. A growing shift toward hyperscale data centers to efficiently support robust, scalable applications is anticipated to propel the data center storage market in the United Kingdom.
• With data center providers increasing their digital infrastructure, the demand for storage equipment is expected to increase. Equinix Inc., a digital infrastructure company, announced its plans to build a new International Business Exchange (IBX) data center in Salford, Manchester. Equinix also announced a total investment of USD 165 million and an additional USD 1 billion in the digital infrastructure.

Europe Data Center Storage Industry Overview

Europe’s data center storage market is fragmented and has gained a competitive edge in recent years. Some of the major players are Dell Inc., Hewlett Packard Enterprise, and NetApp Inc., among others. These major players, with a prominent market share, focus on expanding their customer base across the region. These companies leverage strategic collaborative initiatives to increase their market share and profitability.

• February 2023: NetApp Inc. announced the upcoming availability of the NetApp AFF C-Series, a new family of capacity flash storage options that deliver lower-cost all-flash storage, and NetApp AFF A150, a new entry-level storage system in the AFF A-Series family of all-flash systems.
• July 2022: Dell Technologies unveiled advancements in storage solutions, emphasizing automation, security, and adaptability for multi-cloud environments. The company’s Dell PowerFlex software-defined infrastructure caters to both traditional and modern workloads by offering new file services. This innovation brings together block and file storage functionalities on a unified platform.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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