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Western Europe data center market witnessed investments of USD 35.06 billion in 2021 and will witness investments of USD 44.77 billion by 2027, growing at a CAGR of 4.16% during 2022-2027. The data center market in Western Europe witnessed an increase in investment in countries such as Italy, Spain, Portugal, Belgium, and Switzerland. Multiple projects are being carried out by colocation, cloud, telecommunication, and internet service providers.Speak directly to the analyst to clarify any post sales queries you may have.
The following factors are likely to contribute to the growth of the Western Europe data center market:
- Growing Artificial Intelligence Adoption in the Region
- Growing District Heating Concept in the Region
- Growth in Sustainable Initiatives
- Innovative Data Center Technologies
- Advance IT Infrastructure
- Increasing Data Center Investments
- 5G Deployments to Fuel Edge Data Centers
- Growth in Cloud Service Adoption in the Region
- Covid-19 on Data Center Market
- Increasing Adoption of Big Data & IoT
- Government Support for Data Center Market
- Adoption of OCP and Hyperscale Infrastructure
- Growing Submarine and Inland Connectivity
KEY HIGHLIGHTS
- Data center investments in Western Europe grew by around 58% in 2021, compared to 2021, dominated by several hyperscale investments and development of data centers in emerging markets such as Spain, which are likely to witness over USD 3 billion in data center investments during 2022-2027.
- The top three data center constitute around 50% of data center investments in 2021. Colocation investments contribute to around 65% of the total investments made in 2021 across Western Europe
- In 2021, the Western Europe data center market witnessed over 100 new and expansion data center projects, with Germany leading the market accounting for over 22% of the investment followed by France (19%), the UK (14%), and Ireland (12%).
WESTERN EUROPE DATA CENTER MARKET SEGMENTS
The Western Europe data center market has the following segmentation:
- Infrastructure
- IT Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- Cooling Systems
- Cooling Technique
- General Construction
- Tier Standard
- Facility Type
- Geography
SEGMENTATION ANALYSIS
- IT Infrastructure: Server procurement will bring in USD 90 billion cumulative revenue opportunity for vendors operating in Western Europe during 2022-2027. In servers, AI-based computing infrastructure is gaining increased traction in the market. NVMe flash storage dominates with its growth rate and 25/100 GbE switch ports among network infrastructures. Several innovations are also available within servers from different operators. For instance, Facebook in May 2020 announced the next generation Sonora Pass server specification at the Open Compute Project (OCP). Servers with AI and ML built into them are getting developed and offer features such as analytics for data, ease in developing AI-enabled apps, and flexible data deployment to grow the cloud operations in the market significantly.
- UPS Systems: $8+ billion will be spent on procuring UPS Systems in data centers during 2022-2027. Due to the failure of UPS and to overcome the challenges of VRLA batteries, vendors introduced lithium-ion UPS solutions and Nickel Zinc and Prussian Blue Sodium-ion batteries, most data centers operating in European regions are adopting N+N redundant infrastructure, while the majority of data centers are designing facilities with space for installing up to 2N+2 redundant UPS systems to cope with diverse feed designs of the facility, thereby, the growth of the lithium-ion UPS batteries in the data center market.
Market Segmentation by Infrastructure
- IT Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
Market Segmentation by IT infrastructure
- Server
- Storage
- Network
Market Segmentation by Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- Power Distribution Units
- Other Electrical Infrastructure
Market Segmentation by Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
Market Segmentation by Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers, and Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
Market Segmentation by Cooling Technique
- Air-Based Cooling Technique
- Liquid-Based Cooling Technique
Market Segmentation by General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Physical Security
- Fire Detection & Suppression
- DCIM/BMS
Market Segmentation by Facility Type
- Hyperscale Data Centers
- Colocation Data Centers
- Enterprise Data Centers
Market Segmentation by Tier Standard
- Tier I & II
- Tier III
- Tier IV
VENDOR ANALYSIS
- Hewlett Packard Enterprise is a major vendor in the server market. Server demand has grown over the last year through the higher infrastructure deployment for big data analytics workloads. The need for converged and hyper-converged solutions also experienced substantial growth in the market.
- Innovations in system performance for all workloads and delivery of high-density systems with high-capacity SSDs play a vital role in gaining market share in the storage market. Dell Technologies is the leading vendor in the market.
- Cisco Systems dominated the market aided by the strong demand for its Application Centric Infrastructure (ACI) product portfolio. Cisco’s data center switching revenue increased through higher sales of the Cisco Nexus series product. Other major vendors operating include Arista Networks, Broadcom in the data center market.
Key IT Infrastructure Providers
- Arista Networks
- Atos
- Broadcom
- Cisco Systems
- Dell Technologies
- Extreme Networks
- Fujitsu
- Hitachi Vantara
- Hewlett Packard Enterprise (HPE)
- Huawei Technologies
- IBM
- Inspur
- Juniper Networks
- Lenovo
- MiTAC Holdings
- NEC Corporation
- NetApp
- Pure Storage
- Quanta Computer (Quanta Cloud Technology)
- Super Micro Computer
- Wistron (Wiwynn)
Key Support Infrastructure Providers
- 3M
- ABB
- Airedale International Air Conditioning
- Alfa Laval
- Carrier
- Caterpillar
- Condair
- Cummins
- Daikin Applied
- Delta Electronics
- Eaton
- ebm-papst
- EMICON INNOVATION AND COMFORT
- Enrogen
- FlaktGroup
- GESAB
- HiRef
- HITEC Power Protection
- Johnson Controls
- KOHLER-SDMO
- KyotoCooling
- Legrand
- Mitsubishi Electric
- Munters
- Nlyte Software (Carrier Global Corporation)
- Perkins Engines
- Piller Power Systems
- Riello Elettronica ( Riello UPS)
- Rittal
- Rolls-Royce
- Schneider Electric
- Siemens
- Socomec
- STULZ
- Trane (Ingersoll Rand)
- Vertiv
Key Construction Contractors
- AECOM
- AEON Engineering
- ARC:MC
- Ariatta
- ARSMAGNA
- Artelia
- Arup
- Atkins
- Basler & Hofmann
- BENTHEM CROUWEL ARCHITECTS
- Bouygues Construction
- Callaghan Engineering
- Cap Ingelec
- Collen
- Deerns
- DPR Construction
- EYP MCF
- Ferrovial
- Future-tech
- ICT Facilities
- IDOM
- ISG
- JCA Engineering
- JERLAURE
- Kirby Group Engineering
- Linesight
- M+W Group (EXYTE)
- Mercury
- Metnor Construction
- Nicholas Webb Archiects (NWA)
- NORMA Engineering
- Oakmont Construction
- PM Group
- (PQC) Power Quality Control
- Quark
- RED
- Royal HaskoningDHV
- Skanska
- SPIE UK
- Starching
- STO Building Group
- STS Group
- TPF
- TTSP
- Turner & Townsend
- Winthrop Engineering and Contracting
Key Data Center Investors
- AtlasEdge
- Aruba
- China Mobile International
- Colt Data Centre Services (COLT DCS)
- CyrusOne
- DATA4
- Digital Realty
- Echelon Data Centres
- EdgeConneX (EQT Infrastructure)
- Equinix
- Euclyde Data Centers
- Global Switch
- Iron Mountain
- KDDI
- Liebert Global
- Microsoft
- Nautilus Data Technologies
- NDC-GARBE Data Centers Europe
- NTT Global Data Centers
- Orange Business Services
- Proximity Data Centres
- Pure Data Centres
- T5 Data Centers
- Telecom Italia Sparkle
- Vantage Data Centers
- Virtus Data centers (ST Telemedia Global Data Centres)
- Yondr
GEOGRAPHICAL ANALYSIS
- UK: The major locations for data centers construction in the UK include London, Manchester, and Slough. Among these major locations in London, which witnessed a data center area addition of around 400 thousand square feet to fuel the data center market growth.
- Germany: Over 1,000 MW of data center capacity will add during 2022-2027 in the German market. The data center market in Germany witnessed a major number of data center projects among all countries of the region, including investments from some of the global data center operators such as CyrusOne, Digital Realty, Equinix, Vantage Data Centers, and NTT Global Data Centers. The market witnessed investments also from cloud service providers.
- France: The market will witness data center investments worth over $7 billion during 2022-2027. The major locations for data center developments in the country include Paris, Marseille, Strasbourg, Bordeaux, and Mougins, out of which Paris witnessed a majority of data center space addition. In November 2021, the French Government announced around $2 billion to support research and development projects for cloud computing in the country. In October 2021, Interxion, a subsidiary of Digital Realty announced its plans of developing a data center campus in Paris with a power capacity of around 130 MW.
Market Segmentation by Geography
- Ireland
- Germany
- UK
- Netherlands
- France
- Switzerland
- Italy
- Spain
- Belgium
- Portugal
- Luxembourg
- Other Western European Countries
KEY QUESTIONS ANSWERED:
1. What is the size of the Western Europe data center market?
2. Who are the key investors in the Western Europe data center industry?
3. What are the factors driving the data center market growth in Western Europe?
4. What are some of the factors considered for Data center site selection criteria in terms of area development and data center operation?
Table of Contents
1 Research Methodology2 Research Objectives3 Research Process6 Market at a Glance
4 Scope & Coverage
5 Report Assumptions & Caveats
7 Introduction
8 Market Opportunities & Trends
9 Market Growth Enablers
10 Market Growth Restraints
11 Market Landscape
12 Facility Type
13 Infrastructure
14 IT Infrastructure
15 Electrical Infrastructure
16 Mechanical Infrastructure
17 Cooling Systems
18 Cooling Techniques
19 General Construction
20 Tier Standards
21 Geography
22 UK
23 Germany
24 France
25 Netherlands
26 Ireland
27 Switzerland
28 Italy
29 Spain
30 Belgium
31 Luxembourg
32 Portugal
33 Other Western European Countries
34 Competitive Landscape
35 Prominent It Infrastructure Providers
36 Prominent Support Infrastructure Providers
37 Prominent Construction Contractors
38 Prominent Data Center Investors
39 New Data Center Investors
40 Report Summary
41 Quantitative Summary
42 Appendix
LIST OF EXHIBITS
LIST OF TABLES
Companies Mentioned
- Arista Networks
- Atos
- Broadcom
- Cisco Systems
- Dell Technologies
- Extreme Networks
- Fujitsu
- Hitachi Vantara
- Hewlett Packard Enterprise (HPE)
- Huawei Technologies
- IBM
- Inspur
- Juniper Networks
- Lenovo
- MiTAC Holdings
- NEC Corporation
- NetApp
- Pure Storage
- Quanta Computer (Quanta Cloud Technology)
- Super Micro Computer
- Wistron (Wiwynn)
- 3M
- ABB
- Airedale International Air Conditioning
- Alfa Laval
- Carrier
- Caterpillar
- Condair
- Cummins
- Daikin Applied
- Delta Electronics
- Eaton
- ebm-papst
- EMICON INNOVATION AND COMFORT
- Enrogen
- FlaktGroup
- GESAB
- HiRef
- HITEC Power Protection
- Johnson Controls
- KOHLER-SDMO
- KyotoCooling
- Legrand
- Mitsubishi Electric
- Munters
- Nlyte Software (Carrier Global Corporation)
- Perkins Engines
- Piller Power Systems
- Riello Elettronica ( Riello UPS)
- Rittal
- Rolls-Royce
- Schneider Electric
- Siemens
- Socomec
- STULZ
- Trane (Ingersoll Rand)
- Vertiv
- AECOM
- AEON Engineering
- ARC:MC
- Ariatta
- ARSMAGNA
- Artelia
- Arup
- Atkins
- Basler & Hofmann
- BENTHEM CROUWEL ARCHITECTS
- Bouygues Construction
- Callaghan Engineering
- Cap Ingelec
- Collen
- Deerns
- DPR Construction
- EYP MCF
- Ferrovial
- Future-tech
- ICT Facilities
- IDOM
- ISG
- JCA Engineering
- JERLAURE
- Kirby Group Engineering
- Linesight
- M+W Group (EXYTE)
- Mercury
- Metnor Construction
- Nicholas Webb Archiects (NWA)
- NORMA Engineering
- Oakmont Construction
- PM Group
- (PQC) Power Quality Control
- Quark
- RED
- Royal HaskoningDHV
- Skanska
- SPIE UK
- Starching
- STO Building Group
- STS Group
- TPF
- TTSP
- Turner & Townsend
- Winthrop Engineering and Contracting
- AtlasEdge
- Aruba
- China Mobile International
- Colt Data Centre Services (COLT DCS)
- CyrusOne
- DATA4
- Digital Realty
- Echelon Data Centres
- EdgeConneX (EQT Infrastructure)
- Equinix
- Euclyde Data Centers
- Global Switch
- Iron Mountain
- KDDI
- Liebert Global
- Microsoft
- Nautilus Data Technologies
- NDC-GARBE Data Centers Europe
- NTT Global Data Centers
- Orange Business Services
- Proximity Data Centres
- Pure Data Centres
- T5 Data Centers
- Telecom Italia Sparkle
- Vantage Data Centers
- Virtus Data centers (ST Telemedia Global Data Centres)
- Yondr
Methodology
Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.
Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.
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