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

The Belgium Data Center Storage Market size is estimated at USD 0.33 billion in 2024, and is expected to reach USD 0.38 billion by 2029, growing at a CAGR of 2.29% during the forecast period (2024-2029).

Key Highlights

• The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
• Under Construction IT Load Capacity: The upcoming IT load capacity of the Belgium data center market is expected to reach 260 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase more than 1.3 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 65,000 units by 2029. Brussels will likely house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 5 submarine cable systems connecting Belgium, and many are under construction.
• An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide. Several factors contribute to the demand for data centers and their growth within Belgium, which is reflected by the country's evolving IT landscape, business activities, and technological initiatives.
• The key drivers that propel the development of data centers in the nation include digital transformation, cloud computing adoption, e-commerce & digital services, renewable energy & sustainability, and smart cities & IoT initiatives. Hence, such factors are expected to drive market growth during the forecast period.

Belgium Data Center Storage Market Trends

IT & Telecommunication Segment Holds the Major Share.

• Cloud and telecom are anticipated to contribute the largest market shares among end-user industries. Due to the increasing data generation, which drives the demand for quicker processing and effective servers, the cloud segment generates significant revenue.
• The Belgian government is providing significant investments to develop its IT infrastructure. Incentives are available in the Flanders region for fields requiring a lot of research, such as ICT and cloud computing. These include the investment deduction for R&D, which is equal to 20.5% of the depreciated amount or 13.5% of the acquisition value of the qualified asset. Additionally, up to 85% of a firm's net earnings from innovation are tax exempted. Such aspects are expected to drive the demand for data storage and processing facilities.
• Several incubators in the country are also supporting the success of newcomers to the ICT and cloud computing industries in Flanders by offering access to reasonably priced office space, administrative services, and even development infrastructure. The production value of ICT services increased from EUR 31.7 billion (USD 33.4 billion) in 2017 to EUR 35.3 billion (USD 37.19 billion) in 2019 and continues to grow. Such factors depict the growing need for racks and storage facilities for ICT services.
• In the telecom sector, Belgium will phase out 2G and 3G mobile services by 2030. The major strategy for all operators is to turn off their 2G and 3G networks, which will allow them to focus investments and spectrum resources on further improving the 4G customer experience while rolling out 5G. High levels of broadband and cable connection for high-speed internet are readily available and reasonably priced, assisting with the expansion of digital penetration and propelling the nation's e-commerce business.
• For instance, there will be 1.5 million more mobile broadband connections overall between 2022 and 2028, a 14.4% increase. Such instances in the market are expected to create more need for data centers, resulting in rising demand for data center storage solutions in the coming years.

Hybrid Storage is Expected to Hold a Significant Market Share

• The combination of on-premises and cloud storage solutions is called hybrid storage in data centers. This approach leverages the strengths of both environments, offering the flexibility to store and manage data on-site and in the cloud.
• Belgium is a major hub of international trade due to its central location in Europe bordered by developed nations. Hybrid storage enables enterprises to communicate with one another worldwide, allowing efficient transmission and management of data across premises infrastructures and cloud services in support of international operations.
• With large amounts of data generated every day, businesses rely on data centers to efficiently manage data and storage. Therefore, the increasing use of hybrid storage data centers is the most important factor affecting data center storage consumption. Increasing demand for technology services and investments by large companies are also changing the market growth.
• Sales have increased recently in Belgium, making the country one of the fastest-growing countries in the e-commerce market. The COVID-19 pandemic increasingly prompted Belgian consumers and retailers to turn to e-commerce. The number of online shoppers aged 16 to 70 increased from 49% in 2017 to 66% in 2021. The Belgian online retailer's transaction value increased from USD 6.1 billion (EUR 5.84 billion) in 2017 to USD 9.2 billion (EUR 8.81 billion) in 2021.
• Further, the goals of Belgium's digital transformation program include the modernization of public services, strengthening fiber infrastructure, and preparing for 5G. The pandemic has caused 36% of Belgian businesses to speed up their digitization. Additionally, 91% of firms aim to increase or keep their headcount while automating. These factors are further expected to increase the demand for hybrid storage-type data centers during the forecast period.
• The key players in the market focus on improving the data center storage solutions to meet the market demand. In May 2023, Infinidat, a prominent provider of enterprise storage solutions, announced the launch of two prominent new solutions. The solutions include the launch of InfuzeOS Cloud Edition, which expands Infinidat’s support of hybrid cloud storage deployments and new InfiniSafe Cyber Detection for enterprise primary storage to better resist cyberattacks.

Belgium Data Center Storage Industry Overview

The forthcoming data center construction projects in the country are expected to drive an increased demand for the Belgium Data Center Storage Market in the coming years. The market in Belgium is moderately consolidated, featuring key players such as Dell Inc., Hewlett Packard Enterprise, Huawei Technologies Co. Ltd., Hitachi Vantara LLC, and Kingston Technology Company Inc. These major players, with significant market share, are actively focused on expanding their regional customer base.

In May 2023, Nutanix, a leading provider of cloud computing and hybrid multi-cloud solutions, announced the launch of Nutanix Central. This cloud-based solution provides a unified console for visibility, monitoring, and management across on-premises, hosted, or edge infrastructure. Nutanix Central extends the universal cloud operating model of the Nutanix Cloud Platform, breaking down silos and simplifying the consistent management of applications and data across diverse environments.

In April 2023, Hewlett Packard Enterprise (HPE) unveiled new file, disaster, block, and backup recovery data services designed to help customers eliminate data silos, reduce cost and complexity, and enhance performance. The new file storage data services offer scale-out, enterprise-intensive performance for data workloads, while the expanded block services provide mission-critical, midrange storage economics.

Additional Benefits:

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

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