EMEA Data Center Colocation Market Size, Share, & Trends Analysis Report by Electrical Infrastructure (UPS Systems, Generators, Transfer Switches and Switchgears, PDUs, and Other Electrical Infrastructure), Mechanical Infrastructure (Cooling Systems (CRAC & CRAH Units, Chiller Units, Cooling Towers & Dry Coolers, Economizer & Evaporative Coolers, Other Units), Racks, Other Mechanical Infrastructure, and Cooling Technique (Air-based Cooling and Liquid-based Cooling Technique)), General Construction (Building Development, Installation & Commissioning Services, Building Design, Physical Security, and DCIM), Service Type (Retail and Wholesale), and Geography (Western Europe, Nordic, Central and Eastern Europe, Middle East, and Africa), Industry Analysis Report, Regional Outlook, Growth Trends, Competitive Landscape, Share & Forecast, 2020–2025
|Market Size (Revenue)||USD 14 BILLION (2025)|
|Market Size (Area)||7 MILLION SQUARE FEET (2025)|
|Market Segments||Electrical Infrastructure (UPS Systems, Generators, Transfer Switches and Switchgears, PDUs, and Other Electrical Infrastructure), Mechanical Infrastructure (Cooling Systems (CRAC & CRAH Units, Chiller Units, Cooling Towers & Dry Coolers, Economizer & Evaporative Coolers, Other Units), Racks, Other Mechanical Infrastructure), General Construction (Building Development, Installation & Commissioning Services, Building Design, Physical Security, and DCIM), and Service Type (Retail and Wholesale)|
|Geographic Analysis||Western Europe, Nordic, Central and Eastern Europe, Middle East, and Africa|
|Countries Covered||UK, Germany, Netherlands, France, Ireland, Denmark, Norway, Sweden, Finland & Iceland Russia & Czech Republic, Poland & Austria, GCC and Other Middle Eastern Countries, South Africa and Other African Countries|
The EMEA data center market is witnessing a significant boost in investment because of the implementation of the GDPR in Europe and the increase in demand for colocation services due to the high adoption of internet-based services among businesses in the Middle East and Africa region. The adoption of cloud-based services has increased as organizations in the region are working from remote locations due to the outbreak of the COVID pandemic. This increase in adoption will lead to a rise in the demand and development of colocation data centers in the region. Colocation service providers will continue to build both retail and wholesale colocation spaces in the region with higher connectivity and availability of power sources.
Colocation providers continue to drive market revenue during the forecast period. The market will also witness the entry of new providers, especially in Western Europe. Also, new colocation service providers are likely to enter in the Middle East and African countries to capture new markets. The market witnessed significant M&A activities in 2019 due to the rise in demand in several businesses, leading data center service providers to sign M&A contracts to expand their portfolio.
This research report includes a detailed segmentation by
The UK, Germany, the Netherlands, France, and Ireland are major contributors to the power infrastructure revenue. Several facilities have adopted flexible designs in Western Europe to facilitate dual power feeds, 2N redundant UPS and PDU systems, and N+1 generator. Colocation investments are likely to push the demand for 500–1,000 kVA UPS systems and >1,000 kVA systems. Generators with >2 MW power capacity are prefeed in the region. Most facilities in the Nordic region are powered through renewable energy with grid stability of over 95%. This reduces the dependence on generator systems, leading to the installation of 2N UPS systems. The use of basic PDUs is comparatively lower, with higher procurement of metered and monitored PDU systems.
Colocation providers are the major revenue generators for electrical infrastructure solutions in Central & Eastern Europe. Most data centers are designed to be of Tier III standards with a minimum of N+1 redundant across UPS and generator systems. Large data center facilities are being built with dual power feeds. The use of renewable energy sources to power data centers is low in the region. However, it will increase during the forecast period.
Favorable climatic conditions and the availability of renewable resources such as wind energy in the UK have helped data center operators to benefit from free cooling. Most of the data centers built in Germany are adopting free cooling to cool the facility. A major vendor uses redundant water and air-cooled system supported by free cooling with N+1 redundancy and CRAH units with N+1 configuration. Most of the data centers in the Nordic region are cooled through free cooling techniques. The Nordic data center market facilitates free cooling for over 8,400 hours in a year. The use of free cooling systems will continue to add revenue to the market during the forecast period. All the countries in the Central and Eastern European regions support free cooling of the data center for over 6,000 hours a year. Many data centers have been equipped with in-direct evaporative/adiabatic coolers. Few facilities have also adopted water/glycol-based cooling systems along with highly efficient DX-based CRAC systems to cool the facility
Western Europe is the most active market across the European region for data center construction. Many facilities are being designed and built to cover an area of over 100,000 square feet. The increase in demand for data centers has been a revenue opportunity for multiple contractors and sub-contractors in the market. However, the major challenge for several contractors in the region is the non-availability of skilled professionals to manage multiple data center projects.
In terms of physical security, facilities are monitored by CCTV surveillance and security patrols and there are multiple access barriers with mantraps, contactless key cards, and biometric readers. Greenfield construction development dominates the Middle East market. As greenfield developments cover an area of over 50,000 square feet, they require substantial expertise in construction, design, and engineering services. The labor cost is moderate in the region due to the availability of the skilled workforce.
Retail colocation services in EMEA are expected to reach over $9.5 billion by 2025. The market is likely to be driven by the increased demand for colocation services from organizations in developing countries. Also, enterprises with the need for geographically distributed capacity and limited budgets are likely to opt for retail colocation. Several existing retail colocation service users are expected to opt for wholesale colocation capacities during the forecast period. The retail colocation market is also likely to face a strong challenge from cloud-based hosting services, especially in the Middle East and Africa region.
The adoption of wholesale colocation services is growing across regions due to increased demand for computing capacity from global and regional enterprises, cloud providers, big data, and IoT organizations. The wholesale colocation transaction can extend up to 15 years, while as retail colocation lease can run for a period of up to five years. With the opening of cloud solutions among leading cloud service providers such as AWS, Microsoft, IBM, Google, and Oracle, the need for wholesale colocation space is growing in the Middle East & Africa. These service providers work with colocation providers to build a “built-to-suit” facility for their operational requirements.
In Europe, the UK, Germany, and the Netherlands dominate the market in colocation investments. Western Europe is witnessing colocation investment contributions from both global and local colocation service providers. The GDPR implementation has driven the demand for data center development among colocation providers in Europe. The market will also witness the continuous adoption of cloud services among SMEs, with the increased interest shown towards the digital transformation of businesses by adopting solutions such as IoT, big data, and artificial intelligence. The Middle East and Africa market is witnessing investments in the colocation data center of over 5 MW. Few providers such as Khazna Data Ceter, Teraco Data Environments, and Africa Data Centers (Liquid Telecommunications) are investing in hyperscale data center capacity.
In terms of revenue, Equinix is the leading player in the EMEA market with a market share of about over 15% in 2019, followed by Digital Realty (Interxion) and NTT Global Data Center. Over the last two years, the market has witnessed the entry of several new entrants. These new entrants will provide intense competition to the growth of revenue. The market is likely to witness several mergers and acquisitions, leading to an increase in the market share of existing providers. In terms of colocation revenue, Western Europe dominates the market, with around 70% of the revenue share. In Western Europe, the UK is the leading revenue contributor due to the presence of Equinix, Interxion & Digital Realty, STT GDC (VIRTUS Data Centre), LDeX Group, Global Switch, Telehouse, Colt DCS, CyrusOne, and Next Generation Data (Vantage Data Centre).
Segmentation by Electrical Infrastructure
By Mechanical Infrastructure
By General Construction
By Service Type
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