This market research report on EMEA data center colocation market offers analysis on market size & forecast by:
Data Center Colocation Investment Analysis | 2017-2023
Data Center Colocation Service Analysis | 2017-2023
Vendor Market Share Analysis 2017
The report covers details on market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by investment, by service type, and by geography.
The growing demand for cloud-based services across the Eastern European, Middle Eastern, and African region is propelling the growth of the EMEA data center colocation market. The implementation of GDPR in May 2018 fuel significant investments in the European market. The rapid adoption of cloud-based services and improvement in fiber connectivity will encourage local and global colocation providers to invest in the MEA region over next few years. In 2017, several countries in the Western European region such as the UK, Germany, France, Ireland, Spain, Italy, Netherlands, Switzerland, Portugal, and Austria witnessed the development of colocation datacenters. The adoption of cloud-based service, big data analytics, and IoT is boosting the demand for additional datacenters in the EMEA market. The increasing number of M&A activities by leading service providers such as Equinix, ST Telemedia, and CuyrusOne will contribute to the growing investment in the EMEA data center colocation market. The implementation of GDPR and the exponential proliferation of smart devices and internet will add to the demand for colocation datacenters in the EMEA data center colocation market. The submarine cable projects such as MAREA and HAVFRUE Cable System will have a positive impact on the overall development of the EMEA market. The growing number of datacenter construction in the Nordic region will augment the transformation of the EMEA data center colocation market.
Regions such as UAE, Saudi Arabia, Kenya, Zimbabwe, Nigeria, and South Africa are attracting the maximum investments in the Middle Eastern and African region. The growing construction of greenfield projects will create lucrative opportunities for leading power and cooling infrastructure vendors operating in the market. The EMEA data center colocation market is estimated to attract investments worth around $10 billion by 2023, growing at a CAGR of approximately 8% during 2017-2023. The research report offers market size analysis regarding colocation services during the forecast period.
The increasing popularity of the concept of district heating will revolutionize the EMEA data center colocation market over the next few years. Facilities across the world are one of the largest contributors of greenhouse emission gases, and the operators are converting this disadvantage by supplying the waste heat emitted by servers to cool district homes during winters. In 2009, Academia Datacenter in Finland was built to use waste heat for warming nearby households. Also, the majority of the facilities development in Sweden is aimed at supply waste heat to nearby communities in the EMEA data center colocation market. The government incentives to promote sustainable development will also encourage colocation providers to invest in the development of this heating concept in the EMEA market. For instance, DigiPlex is supplying datacenter waste heat to warm 10,000 apartments via the local district heating system. The use of this district heating is likely to expand across other European datacenter market leading to a boost in investments in the EMEA data center colocation market.
This market research report includes a detailed segmentation of the market by investment, service type, and geography.
EMEA Data Center Colocation Market – By Investment
Availability of renewable energy source will drive the colocation investment in the Nordic region in the EMEA data center colocation market
The EMEA data center colocation market by investment is classified into electrical infrastructure, mechanical infrastructure, and general construction. The electrical infrastructure segment dominated around half of the market share in 2017, growing at a CAGR of more than 7% during the forecast period. The market research report offers market share analysis of this segment by power capacity (MW) and square feet area during 2017-2023. The increasing availability and the government initiatives to promote the use of renewable energy sources in the Western European region is boosting investments in the market. Almost 100% of the facilities in the Nordic region is powered by renewable energy.
Moreover, the installation of on-site solar cells to power the facilities in the MEA region will fuel the evolution of the EMEA market. The use of fuel cells and lithium-ion UPS systems across multiple datacenters in the UK and Germany will reduce the power and cooling costs in the region. The rapid growth of the modular facilities, especially containerized and performance optimization datacenters (PODs) will drive the demand for infrastructure solution with a minimum of N+1 redundancy in the EMEA market. The rising demand for systems that facilitate free cooling for over 4,000 hours a year is driving the need for superior mechanical infrastructure in the EMEA data center colocation market. The focus on designing sustainable operational environment will create lucrative opportunities for vendors in the general construction segment in the market.
EMEA Data Center Colocation Market – By Service Type
GDPR will increase the demand for retail and wholesale colocation spaces contributing significantly to the growth in revenue of the EMEA data center colocation market
The service type segment in the EMEA data center colocation market is categorized into retail and wholesale colocation. Retail colocation segment occupied more than half of the total market share in 2017, growing at a CAGR of around 10% during the forecast period. In retail colocation, customers pay for the rack space, power, bandwidth, cloud connectivity, and interconnectivity among facilities for disaster recovery. The increasing adoption of caged rack spaces comprising multiple racks will help reduce the cost of adding additional racks by customers in the retail space. in the increase in demand for interconnection services with multiple facilities and cloud connectivity service with several cloud platforms will attract a maximum number of customers in the EMEA market. Retail colocation provides more control to enterprises over IT infrastructure operations than managed hosting services which acts an advantage for customers in the EMEA market. The increasing demand for colocation services from organizations especially in Eastern Europe and MEA will drive the growth of this segment in the EMEA data center colocation market. The growing demand for high computing capacity from global enterprises, cloud providers, big data, and IoT organizations are some of the factors propelling the growth of the wholesale colocation segment in the EMEA market.
EMEA Data Center Colocation Market – By Geography
M&A activities by Equinix, ST Telemedia, and CyrusOne will increase investment in the EMEA data center colocation market
The EMEA data center colocation market by geography is segmented into Western Europe, Nordic, Eastern Europe, and the Middle East and Africa. Western Europe dominated the majority of the market share in 2017, growing at a CAGR of around 6% during the forecast period. The UK, Germany, France, Ireland, Spain, Italy, the Netherlands, Switzerland, Portugal, and Austria are the largest revenues generators in the Western European region in the EMEA market. There will be an increase in demand for the adoption of modular and scalable power systems in the market. The implementation of energy-efficient infrastructure to reduce carbon emissions will create lucrative opportunities for top vendors operating in the Western European region in the EMEA data center colocation market. The large and mega facilities in the region are procuring evaporative/adiabatic coolers and free cooling chillers to cool facilities in the market. The increasing deployment of on-premise prefabricated datacenters in Eastern Europe will boost revenues in the EMEA market.
Key Vendor Analysis
The EMEA data center colocation market is witnessing the expansion and construction of new facilities across the region due to the implementation of GDPR. The leading facilities operators are deploying facilities with over one million net rentable white space to service retail and wholesale facilities customers. Some of the other prominent providers of datacenter service in the European market include T-Systems, Kepple DC, Colt DCS, TeliaSonera, Iliad Datacenter, Telefónica, Euclyde, and Interoute. The growing demand for cloud services will create new avenues for service providers operating in the market. Vendors such as Equinix has developed an estimated net rentable area of around 500,000 square feet across 14 facilities that were opened and under construction in 2017to attract a maximum number of consumers in the market. The entrant of pure-play colocation providers will increase the level of competition in the EMEA data center colocation market during the forecast period.
The major vendors in the EMEA data center colocation market are:
Other prominent vendors in the EMEA data center colocation market consist of 3data, Aruba S.P.A., Atman (ATM S.A.), Basefarm (Orange Group), Bezeq International, CenturyLink (Level 3), Cyxtera Technologies, dcstar, Digiplex, Euclyde, Flexential, Fortlax, Global Connect, Green Datacenter AG, Hydro66, Iliad Data Center, Internap, Interoute (GTT Communications), IXcellerate, Keppel DC, LDeX Group, Liquid Telecommunication,LuxConnect, Mobily, Ooredoo, ST Telemedia Global Data Center (STT GDC), Switch SUPERNAP, Telehouse, Telefónica, Teraco Data Environments, Tieto, T-Systems (Deutsche Telekom), Turkcell, Verne Global, VNET, and Zayo Group Holdings.
Key market insights include
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