France Data Center Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The France data center construction market is projected to register a CAGR of 8.78%.

Key Highlights

• The upcoming IT load capacity of the France data center construction market is expected to reach 1329.4 MW by 2029.
• The country's construction of raised floor area is expected to increase by 6.3 million sq. ft by 2029.
• The country's total number of racks to be installed is expected to reach 316,056 units by 2029. Paris (Ile-De-France) may house the maximum number of racks by 2029.
• There are close to 30 submarine cable systems connecting France, and many are under construction. One such submarine cable that was built in 2016 is C-Lion1, which stretches over 19200 Kilometers with landing points in Marseille, France.

France Data Center Construction Market Trends

BFSI to hold significant market share

• The cloud sector is expected to reach 208.70 MW in 2023, registering a CAGR of 6.81%, surpassing 288.80 MW by 2029. On the other hand, the manufacturing sector is predicted to register a CAGR of 7.81%, reaching a capacity of 130.74 MW by 2029.
• Among end-user industries, IT and telecom and banking, financial services, and insurance (BFSI) are expected to contribute the highest market share, while the manufacturing industry is expected to register the fastest growth over the study period.
• The market in France has also been driven by rising cloud use across most companies as a result of developing technologies like artificial intelligence, big data, and blockchain among various end users. France's adoption rate of cloud computing solutions changed significantly between 2017 and 2019. From 2017 to 2019, hosted private clouds experienced a growth of 19%. French businesses adopted the on-premise private cloud at a rate of 64% in 2019 compared to 47% in 2017.
• During the same period, the adoption rates for IaaS, PaaS, and SaaS solutions rose by 24%, 25%, and 22%, respectively. As the popularity of cloud computing services and applications increases, a more sizable colocation of cloud-based data centers is being built in France.

Paris to be the major hotspot for Data Center Construction

• The total IT load capacity in the Paris (Ile-De-France) hotspot is expected to reach 786.14 MW in 2023 and is projected to exhibit a CAGR of 4.16%, surpassing 1004.22 MW by 2029. On the other hand, the rest of France is predicted to grow and register a CAGR of 7.30% to reach a capacity of 325.19 MW by 2029.
• Paris (Ile-De France) is one of the major hotspots in the country. Paris is located in the Île-de-France area, spanned by the rivers Seine, Oise, and Marne. The distinct departments of the Ile-de-France region are Paris, Seine-et-Marne, Yvelines, Essonne, Seine-Saint-Denis, Val-de-Marne, and Val d'Oise are included in this region. Paris (Ile-De-France) will show a drop in the number of data centers during the forecast period as many operators are looking for locations other than Paris (Ile-De-France) for their data center establishment.
• The city's data center business is booming owing to a large part of the digital economy. Paris has recently developed a reputation as a global tech hotspot for startups and scaleups to boost entrepreneurship and innovation. It currently houses over 8,000 startups.
• Marseille, Strasbourg, Bordeaux, and Mougins are expanding categories in the Rest of France. Southern France is home to Marseille, the second-largest city in France and the seventh-largest internet hub in the world. Additionally, it is among the cities that are qualified for developing data centers due to the placement of nine submarine cables and the interconnection through other cities. Thus, cities other than Paris may see an increase in the construction of data centers in the years to come.

France Data Center Construction Industry Overview

The France data center construction market is fairly consolidated, with significant companies such as Arup Group, Schneider Electric, Arista Networks, Artelia, and Pure Storage.

In April 2023, Data4 announced plans for its new data center in Paris. The company aims to build a total of 8 data centers on 22-hectare land southwest of Paris in Nozay in Essone with an investment of EUR 1 billion (USD 1.18 billion). Such developments provide opportunities for the vendors in the market.

Additional Benefits:

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

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