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

The Netherlands Data Center Storage Market size is estimated at USD 1.65 billion in 2024, and is expected to reach USD 2.29 billion by 2029, growing at a CAGR of 6.88% during the forecast period (2024-2029).

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.

Key Highlights

• Under Construction IT Load Capacity: The upcoming IT load capacity of the Dutch data center rack market is expected to reach 1,400 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 6 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 330,000 units by 2029. Amsterdam will likely house the maximum number of racks.
• Planned Submarine Cables: There are close to 10 submarine cable systems connecting the Netherlands, and many are under construction.
• The 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 the Netherlands, which is reflected by the country's evolving IT landscape, business activities, and technological initiatives. 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. Such factors are also expected to drive market growth during the forecast period.

Netherlands Data Center Storage Market Trends

The IT & Telecommunication Segment is Expected to Hold the Major Share

• Cloud storage in the Netherlands is expanding as a result of rising demand for low-cost data backup, storage, and protection across all companies and the need to manage the data produced by the increased use of mobile technology.
• Governments are also promoting public cloud services and changing regulations. Public cloud services have become more secure, and mass deployment of updates and patches has made software troubleshooting much easier than before. For these reasons, the government revised the National Cloud Policy in 2011.
• Additionally, 49% of Dutch banks use the cloud, of which 38% use the public cloud. Almost 60% of Dutch healthcare institutions use private clouds, of which 43% also use public clouds. Additionally, research shows that more than 50% of government agencies worldwide use office applications in the cloud. These figures were a major driver for the 2011 revision of the Dutch National Cloud Directive.
• The hyperscalers (e.g., AWS, Azure, Google Cloud, etc.) enter new agreements with public sector and on-premises cloud partners, including KPN, that offer Azure and AWS services. The move by the Dutch government showed that the cloud had reached a level of maturity in the country and could be applied to a variety of government-related use cases. This showed that more racks were being used in data centers.
• In telecommunications, the implementation of 5G is projected to impact data traffic positively. By 2026, the country's 3.5 GHz (5G) rollout is anticipated to be complete. By 2030, 60% of the Dutch population will be covered by the 3.5 GHz 5G network, up from 33% in 2023. This trend may greatly encourage the usage of VOD. Such instances in the market are expected to create more need for data centers, resulting in more 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.
• The Netherlands is a strategically vital gateway into Europe, and it has good links with the big cities in Europe. It is a desirable location for data centers, thus facilitating adequate access to the global market, which results in creating more need for hybrid-type data centers.
• Interconnectivity is enhanced by the presence of essential Internet exchanges such as Amsterdam's Internet Exchange (AMSIX). Businesses that require quick and reliable access to other networks worldwide find this crucial, creating more need for hybrid-type data centers.
• The government is expected to make more investments to innovate in areas such as quantum computing, artificial intelligence, and applications utilizing 5G and 6G technologies. It aims to attain full 5G coverage, for which it had planned a 5G spectrum auction in 2023. Such aspects are expected to complement the growth and demand for data processing facilities in the telecom industry, propel data centers' growth, and contribute to segmental growth.
• The key players in the market are focused on improving the data center storage solutions to meet the demand. In May 2023, Infinidat, a prominent provider of enterprise storage solutions, announced the launch of two prominent new solutions. The solutions included the launch of InfuzeOS Cloud Edition, which expanded Infinidat's support of hybrid cloud storage deployments and new InfiniSafe Cyber Detection for enterprise primary storage to better resist cyberattacks.

Netherlands Data Center Storage Industry Overview

The upcoming DC construction projects in the country will increase the demand for the Dutch data center storage market in the coming years. The market is moderately consolidated. The major players include Dell Inc., Hewlett Packard Enterprise, Huawei Technologies Co. Ltd, Hitachi Vantara LLC, and Kingston Technology Company Inc. These major players, with a prominent market share, focus on expanding their regional customer base.

• June 2023: Pure Storage, a significant data storage technology and service provider, announced the expansion of its disk replacement-focused Pure//E family of products with the all-new FlashArray//E. FlashArray//E will provide customers with an 80% reduction in energy and space costs, 60% less operational costs than the disk, and 85% less e-waste.
• April 2023: Hewlett Packard Enterprise (HPE) announced new file, disaster, block, and backup recovery data services designed to assist customers in eliminating data silos, reduce costs and complexity, and improve performance. The new file storage data services deliver scale-out, enterprise-intensive performance for data workloads, and 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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