Europe Data Center Construction Market – Industry Outlook & Forecast 2026-2031
Europe Data Center Construction Market Growth Insights – Market Area to Reach 16.22 Million Sq. Ft. and Power Capacity to Exceed 4,294 MW by 2031, Driven by Expanding Hyperscale Investments, Emerging Data Center Hubs, and Accelerating Digital Infrastructure Development Across Europe (2026–2031)
EUROPE DATA CENTER MARKET SIZE AND SHARE
| MARKET SIZE (INVESTMENT) | USD 58.74 Billion (2031) |
| MARKET SIZE (AREA) | 16.22 Million Sq. Ft. (2031) |
| MARKET SIZE (POWER CAPACITY) | 4,294 MW (2031) |
| CAGR - INVESTMENT (2025-2031) | 22.96% |
| HISTORIC YEAR | 2022-2024 |
| BASE YEAR | 2025 |
| FORECAST YEAR | 2026-2031 |
| MAJOR PLAYERS | 3data Premium Data CentersP4 GroupAire NetworksAmazon Web ServicesAppleAQ Compute |
EUROPE DATA CENTER CONSTRUCTION MARKET SIZE INSIGHTS
The Europe data center construction market was valued at USD 16.99 billion in 2025 and is projected to reach USD 58.74 billion by 2031, expanding at a CAGR of 22.96% during the forecast period. Frankfurt, London, Amsterdam, Paris, and Dublin remain key data center hubs in Europe, supported by sustained investment and growing demand for digital infrastructure. However, increasing power availability constraints could moderate development across these established markets over the coming years. Meanwhile, emerging locations such as Milan, Madrid, Brussels, Lisbon, Athens, Oslo, Stockholm, Copenhagen, Helsinki, Warsaw, and Vienna are gaining prominence as alternative destinations for data center expansion.
The rapid pace of digitalization and rising demand for reliable digital infrastructure are also encouraging governments across the UK, Germany, France, and the Netherlands to develop Free Trade Zones, Industrial Parks, and Special Economic Zones. These initiatives are designed to attract businesses across various industries, including data center operators, by creating favorable conditions for establishing and expanding operations. In 2025, the UK attracted the largest share of data center investment in Europe, followed by Germany, Sweden, and Spain.
The Nordic region, particularly Norway, Sweden, and Finland, is increasingly emerging as an attractive destination for AI-focused and energy-intensive data center development. The availability of abundant renewable energy, cooler climatic conditions, and opportunities to deploy free cooling systems can help operators improve energy efficiency and reduce operating costs. In addition, markets such as Luxembourg, Hungary, Ukraine, Estonia, Romania, and Lithuania are expected to gain greater traction for data center development in the coming years, supported by increasing digitalization, infrastructure investments, and the expansion of regional connectivity.
EUROPE DATA CENTER CONSTRUCTION INSIGHTS BY AREA
The Europe data center construction market by area is expected to reach 16.22 million sq. ft. by 2031, supported by continued investments in data center infrastructure across major European markets. In Switzerland, Zurich has established itself as a prominent hub for data center development, hosting approximately 26 data center facilities with an aggregate white-floor area of around 1.02 million sq. ft. The city is also witnessing the development of around six new data centers, either under construction or in the planning stage, which are expected to add approximately 648.5 thousand sq. ft. of additional data center space over the next three years. Similarly, Italy is strengthening its position as a strategic location for data center and technology investments, with around eight SEZs across Abruzzo, Campania, Adriatic, Ionian, Calabria, Eastern Sicily, Western Sicily, and Sardinia. These zones offer advantages such as tax incentives, infrastructure development, and sector-specific growth opportunities, supporting innovation, sustainability, and international investment across the country.
EUROPE DATA CENTER CONSTRUCTION MARKET INSIGHT BY POWER CAPACITY
The Europe data center construction market by power capacity is expected to reach 4,294 MW by 2031, driven by increasing investments in data center infrastructure and the expansion of capacity across both established and emerging markets. In Europe, primary data center markets such as the UK, Germany, Ireland, the Netherlands, France, and Switzerland continue to face limited industrial electricity availability for the development and operation of data centers. As a result, data center operators are increasingly prioritizing secondary markets, including Italy, Spain, Belgium, Portugal, Greece, Denmark, Sweden, Norway, Finland, Iceland, Poland, Austria, and other countries, where greater electricity availability provides favorable conditions for new data center capacity development. This shift toward electricity-available locations is expected to support the expansion of data center power capacity across Europe through 2031.
Key Report Takeaways
- Facility Type - Colocation data centers accounted for the largest share of investments in the European data center construction market in 2025.
- Infrastructure - General construction represented the largest component of the European data center construction market in 2025, supported by increasing investments in new data center facilities and expansion projects.
- Electrical Infrastructure - UPS infrastructure held the leading position in the Europe data center construction market in 2025, driven by the need for reliable and uninterrupted power supply.
- Mechanical Infrastructure - Cooling systems accounted for the largest share of the mechanical infrastructure market in 2025
- Cooling System - Chiller units represented the largest component of cooling systems in 2025, capturing approximately 69% of the overall market share, supported by their widespread use for efficient heat removal in data center facilities.
- Cooling Techniques - Chiller-based cooling remains a widely adopted cooling technique across Europe data centers, while operators are also increasingly deploying free cooling, air-based cooling, and other energy-efficient solutions to reduce operational costs.
- General Construction - Core & shell development represented the leading general construction category in the Europe data center construction market in 2025, reflecting the significant investment required for site development and the construction of data center buildings.
- Tier Standard - Tier III facilities represented the largest share of the Europe data center construction market by tier standard in 2025, reflecting the strong demand for reliable, redundant, and continuously available data center infrastructure.
Note: Market size and forecast figures are generated using Arizton's proprietary estimation framework, based on facility-level primary and secondary research, updated as of the current reporting cycle.
Europe Existing & Upcoming Data Center Portfolio
EXISTING FACILITY DATA POINTS
- Location — region, city, full address
- Operator / owner name & facility name
- Core & shell white-floor area
- Core & shell IT load capacity
- Rack Capacity
- Tier standard (I–IV) & redundancy design
- Year of operations
UPCOMING FACILITY DATA POINTS
- Investor name & location
- Planned area & power capacity (MW)
- Total investment (USD Million)
- Electrical / mechanical / construction investment split
- Announcement year & project status
- Expected year of opening
- Retail & wholesale colocation pricing
EUROPE DATA CENTER CONSTRUCTION MARKET TRENDS AND ENABLERS
TRENDS
| Trends | Impact (2025) | Geographic Presence | Impact (2031) |
|---|---|---|---|
| Rise in Adoption of Liquid Cooling Techniques in Data Centers | Medium | Western Europe, Nordics and Central & Eastern EuropeWestern Europe, Nordics and Central & Eastern Europe | High |
| The Surge in Digitalization Fueling Data Center Demand | Medium | Western Europe, Nordics and Central & Eastern Europe | High |
| Rise in District Heating Concept | Medium | Western Europe, Nordics and Central & Eastern Europe | High |
| The Rise in AI Adoption Aiding Data Center Investments | High | Western Europe, Nordics and Central & Eastern Europe | High |
| Increasing Sustainability Initiatives Among Data Center Operators | Medium | Western Europe, Nordics and Central & Eastern Europe | High |
Rise in District Heating Concept
In the European data center construction market, district heating, a smart approach to repurposing waste heat generated by data centers, is gaining strong momentum. Data centers generate significant amounts of heat, which was traditionally released into the environment. However, in recent years, several data center operators have started capturing and repurposing this waste heat to meet the heating requirements of nearby homes, businesses, and public buildings through district heating systems. These systems operate as centralized heating networks, distributing waste heat from a central source to multiple end users through insulated pipes.
By utilizing waste heat that would otherwise be released into the environment, district heating networks enable data center operators to significantly reduce carbon emissions and improve overall energy efficiency. As a result, data center operators across European countries are increasingly connecting their facilities to local district heating networks, supporting more sustainable and energy-efficient data center development.
Increasing Sustainability Initiatives Among Data Center Operators
The data center operators and cloud companies in Europe are making substantial efforts to minimize their environmental impact, aligning with the broader sustainability goals of the region to reduce carbon emissions. As part of these efforts, multiple data center firms are entering into partnership agreements with renewable energy companies to source clean and renewable power for their operations across European countries.
For instance, in January 2026, Global Switch, a data center services provider, signed an eight-year power purchase agreement (PPA) with RWE, a German renewable energy company, to procure around 70 GWh of wind energy annually from RWE’s Brechfa Forest West onshore wind farm. The renewable power will support Global Switch’s London Docklands data center operations, reflecting the growing adoption of renewable energy solutions within Europe’s data center industry.
RESTRAINTS
| Restraint | Impact (2025) | Geographic Presence | Impact (2031) |
|---|---|---|---|
| Power Availability & Outage Challenges | Medium | Western Europe, Nordics and Central & Eastern Europe | Low |
| Location Constraints Impacting Data Center Growth | Medium | Western Europe, Nordics and Central & Eastern Europe | Low |
| Lack of Skilled Workforce | Medium | Western Europe, Nordics and Central & Eastern Europe | Low |
| Security Challenges Affecting Data Centers | High | Western Europe, Nordics and Central & Eastern Europe | Medium |
| Supply Chain Challenges Hampering Data Center Growth | High | Western Europe, Nordics and Central & Eastern Europe | Low |
Power Availability & Outage Challenges
Europe is one of the most important data center markets worldwide, with several data center companies preferring to build new facilities across multiple countries in the region. However, the lack of power availability is hampering data center growth in European countries. Data centers require a large and continuous power supply to maintain uninterrupted operations, as even a few minutes of power disruption can affect critical infrastructure and services.
Any discrepancy in power availability or reliability can therefore result in severe power outages, creating significant operational challenges for data center operators and limiting the development of new facilities in power-constrained locations across Europe.
Security Challenges Affecting Data Centers
The data centers in European nations play a critical role in boosting the digital infrastructure of the region, but these facilities often face security challenges that can impact data center operations, customer trust, and data integrity. Data centers face both physical security and cybersecurity threats, requiring operators to implement comprehensive security measures to protect facilities and critical infrastructure against potential risks.
Among these, physical security is particularly important, as data centers can face severe risks from physical disruptions, natural disasters, and equipment failures. Events such as flooding and fires can cause significant operational disruptions and financial losses, making advanced physical security measures essential for protecting data centers against unauthorized access, environmental threats, and other physical risks.
EUROPE DATA CENTER CONSTRUCTION MARKET ENABLERS
Rising Adoption of Liquid Cooling Techniques in Data Centers
The demand for cloud computing services in Europe has been increasing significantly, driven by the region’s strict data regulation laws, rapid digitalization, deployment of 5G connectivity services, and other factors. This growing adoption is further supported by government-led initiatives that encourage organizations to transition toward cloud-based infrastructure.
For instance, the UK Cloud First Policy, introduced by the UK Government in 2013, requires public sector organizations to consider public cloud services as the primary option. At the same time, organizations are increasingly adopting hybrid and multi-cloud computing technologies to enhance security, data performance, management, and cost efficiency.
The Surge in Inland and Submarine Connectivity
Europe has been strengthening its digital infrastructure by expanding submarine cable connectivity, which plays a pivotal role in improving cross-border connectivity and data transmission speeds to support the rising demand for cloud computing services, digitalization, and AI.
The deployment of submarine cable infrastructure across European nations is expected to increase further during the forecast period, driven by the growing need for high-speed internet, cloud services, and digital transformation. This continued expansion of connectivity infrastructure is expected to enhance digital capacity across the region and, in turn, drive increasing demand for data center facilities across European countries.
SEGMENT ANALYSIS
INSIGHT BY FACILITY TYPE
Colocation data centers accounted for the largest share of investments in the European data center construction market in 2025, driven by the growing demand for third-party data center services across European countries. Investment in colocation facilities is expected to increase significantly during the forecast period, expanding at a CAGR of approximately 25% from 2025 to 2031. This growth is supported by the increasing adoption of colocation services among enterprises, rising cloud computing demand, and the growing need for scalable, reliable, and flexible data center infrastructure.
The expanding demand for colocation capacity has prompted several leading Digital Realty, Equinix, CyrusOne, Vantage Data Centers, and other providers, to strengthen their presence and invest in new facilities across Europe.
Major companies operating in the Europe data center construction market include Ark Data Centres, AtlasEdge, atNorth, Borealis Data Center, Bulk Infrastructure, CloudHQ, Colt Data Centre Services, CyrusOne, DataPro, Data4, Digital Realty, EdgeConneX, Equinix, Global Switch, Global Technical Realty, Goodman, Green Mountain, Iron Mountain, Ixcellerate, Keppel Data Centres, LCL Data Centers, maincubes SECURE DATACENTERS, Nation Data Center, nLighten, NTT DATA, Pure Data Centres Group, QTS Data Centers, Rostelecom, STACK Infrastructure, Telehouse, Thésée DataCenter, Vantage Data Centers, VIRTUS Data Centres, Yondr Group, and others.
INSIGHT BY INFRASTRUCTURE
General construction accounted for the largest share of the Europe data center construction market in 2025. The segment covers a broad range of activities and services involved in the development, commissioning, and operation of data center facilities. These include site preparation, core and shell development, installation and commissioning services, and architectural and engineering design.
The segment also encompasses various physical and electronic security infrastructure, including fire and smoke detection systems, intruder detection systems, access control systems, CCTV surveillance, external vehicle crash barriers, security fencing, and mantrap systems. In addition, Data Center Infrastructure Management (DCIM) solutions form an important part of the general construction and infrastructure ecosystem, supporting the monitoring, management, and efficient operation of data center facilities.
INSIGHT BY ELECTRICAL INFRASTRUCTURE
UPS systems represented the largest component of electrical infrastructure in 2025, capturing approximately 28% of the overall market share. The demand for UPS systems is increasing significantly across European countries, driven by the growing investments in data center infrastructure and the need for reliable and uninterrupted power supply. Data center operators are increasingly replacing traditional lead-acid batteries with lithium-ion (Li-ion) UPS systems to improve energy efficiency and sustainability.
For instance, nLighten has installed Li-ion UPS systems at its MAN1 Chester Data Center in Cheshire. This shift toward Li-ion technology is expected to further support the demand for advanced battery solutions across the European data center market during the forecast period.
INSIGHT BY MECHANICAL INFRASTRUCTURE
Cooling systems accounted for the largest share of the mechanical infrastructure market in 2025. In addition to chiller-based systems, data center operators across Europe are increasingly adopting a range of air-based cooling technologies, including DX-based CRAC units, free cooling systems, air-cooled chillers, and dry coolers, to address the rising cooling requirements of data center facilities.
For example, the FRA03 data center campus operated by Main Cube's SECURE DATACENTERS in Frankfurt features air-cooling systems with cold aisle containment and N+1 redundancy, supporting reliable and efficient mechanical infrastructure. Similarly, in October 2025, Telemark launched a new data center in Menden, near Dortmund, Germany, incorporating a free cooling system to enhance cooling efficiency and optimize facility operations.
INSIGHT BY COOLING SYSTEM
Chiller units accounted for the largest share of cooling systems in 2025, playing a critical role in data center thermal management. They primarily supply chilled water to Computer Room Air Handler (CRAH) units to facilitate the efficient removal of heat generated by data center equipment. Chillers can also be integrated with cooling towers, dry coolers, and condensers to enhance heat dissipation and maintain optimal operating conditions within data center facilities.
To improve cooling efficiency, reliability, and redundancy, data center operators are increasingly adopting advanced chiller configurations. For instance, Telehouse installed six 2N-redundant chillers, each with approximately 2.7 MW of cooling capacity, at its Telehouse West data center in London. Similarly, CyrusOne’s PAR1 facility in Paris features N+1 free-cooling air-cooled chillers, providing an efficient and resilient cooling solution for the facility.
INSIGHT BY COOLING TECHNIQUES
Air-based cooling techniques represented the largest component of cooling techniques in 2025. Alongside chiller-based systems, data center operators across Europe also deploy various air-based cooling techniques, including DX-based CRAC units, free cooling solutions, air-cooled chillers, and dry coolers to meet the growing cooling requirements of data center facilities.
For instance, the FRA03 data center campus of maincubes SECURE DATACENTERS in Frankfurt is equipped with air cooling systems featuring cold aisle containment and N+1 redundancy to support reliable mechanical infrastructure. Similarly, in October 2025, Telemark launched a new data center in Menden, near Dortmund, Germany, equipped with a free cooling system to improve cooling efficiency.
INSIGHT BY GENERAL CONSTRUCTION
Core & Shell Development represented the largest component of general construction in 2025, capturing approximately 43% of the overall market share. The European data center market is witnessing the development of both greenfield and brownfield data centers, along with the construction of several large-scale AI-ready facilities across the region. Owing to severe power constraints in several European countries, data center operators are increasingly prioritizing on-site power substations and renewable energy power plants, creating additional opportunities for construction contractors. This growing construction activity has also led data center operators to collaborate with specialized construction providers.
For instance, BladeRoom Data Centres provided Ark Data Centres with construction services for multiple data center campuses across the UK, including the Spring Park Data Center Campus, Cody Park Data Center Campus, and Union Park Data Center.
INSIGHT BY TIER STANDARDS
Tier III represented the largest component of tier standards in 2025, capturing approximately 52% of the overall market share. The strong adoption of Tier III facilities reflects the growing emphasis on reliable, resilient, and continuously available data center infrastructure across Europe. Several data center operators are obtaining Tier III certifications to demonstrate compliance with stringent standards for facility design, construction, and operational sustainability.
For instance, the Uptime Institute certified China Mobile International’s first-phase data center in Slough, the UK, with Tier III accreditation for both its design documents and constructed facility. The company also received the Uptime Institute’s Tier III Silver certification for operational sustainability at its Slough data center.
GEOGRAPHY ANALYSIS
Western Europe
Sweden
UK
Nordics
COMPETITIVE LANDSCAPE
Multiple cloud and hyperscale data center services providers, such as Amazon Web Services (AWS), Alibaba Group, Apple, Google, Meta, Microsoft, and other companies, are continuously expanding their cloud, Artificial Intelligence, and hyperscale data center service offerings across European countries. For example, in March 2026, Amazon Web Services revealed its plans to invest approximately $39.5 billion to expand the company’s Artificial Intelligence service offerings in Spain.
In the European data center construction market, colocation companies drive most data center investment. Some of the prominent colocation service providers in Europe include Ark Data Centres, AtlasEdge, atNorth, Borealis Data Center, Bulk Infrastructure, Colt Data Centre Services, CyrusOne, Data4, Digital Realty, EdgeConneX, Equinix, Global Switch, Green Mountain, Iron Mountain, Keppel Data Centres, maincubes SECURE DATACENTERS, NTT DATA, Pure Data Centres Group, QTS Data Centers, STACK Infrastructure, Telehouse, Vantage Data Centers, VIRTUS Data Centres, Yondr Group, and others.
Several new entrants are expanding their footprints in the European data center industry to address the rising demand for data center services across European countries. Some of the new entrants in the European data center industry include Ada Infrastructure, Apatura, Apto, Art Data Centres, Asia Pacific Land, Blue Star, Compass Datacenters, Corscale Data Centers, DAMAC Digital, Data Center Partners, DayOne, Deep Green, Digital Reef, EdgeNebula, FCDC Corp, Form8tion Data Centers, GARBE Data Centers, GreenScale Data Centres, Greystoke, Latos Data Centres, NXN Datacenters, Portland Trust, Prime Data Centers, Prologis, Sierra DC, and others.
The Europe data center construction market has the presence of multiple local and global support infrastructure providers, such as, 3M, ABB, Aggreko, Airedale, Alfa Laval, AVK, Baudouin, Carrier, Caterpillar, Condair Group, Cummins, Cyber Power Systems, Daikin Applied, DEIF, Delta Electronics, Eaton, ENGIE, GE Vernova, GESAB, Hitachi Energy, HITEC Power Protection, Honeywell, INNIO Group, Legrand, Mitsubishi Electric, Munters, Rehlko, Rittal, Rolls-Royce, Saft, Schneider Electric, Siemens, Socomec Group, STULZ, Submer, Systemair Group, Toshiba, Trane, Vertiv, and others that offer power, cooling, and general infrastructure to data centers.
The market houses several construction companies, which specialize in delivering construction, installation, commissioning, architectural, and engineering services for the construction of data centers across European countries. Some of the prominent construction contractors in the Europe data center construction market include, 2bm, ACS Group, AECOM, AEON Engineering, APL Data Center, ARC: MC, Ariatta, Arup, Astron Buildings, AtkinsRéalis, Basler & Hofmann, BladeRoom Data Centres, Bouygues Construction, CapIngelec, Collen Construction, Colliers, COWI, Deerns UK, Designer Group, Dornan, DPR Construction, Eiffage, Elecnor Group, Ethos Engineering, Fluor Corporation, Future-tech, Gleeds, Granlund Group, Haka Moscow, HDR, Hill International, Kirby Group Engineering, Linesight, LPI Group, McLaren Construction Group, Mercury, NORMA Engineering, PM Group, Ramboll, RED Engineering Design, Skanska, Sudlows, Turner & Townsend, and others.
Europe Data Center Industry Leaders
Disclaimer: Major players sorted in no particular order.
RECENT INDUSTRY DEVELOPMENTS
EUROPE DATA CENTER COLOCATION MARKET
View Colocation Report →TABLE OF CONTENTS FOR EUROPE DATA CENTER INDUSTRY REPORT
EUROPE DATA CENTER MARKET REPORT SCOPE
Facility Type
- Hyperscale Data Centers
- Colocation Data Centers
- Enterprise Data Centers
Infrastructure
- IT Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
IT Infrastructure
- Server Infrastructure
- Storage Infrastructure
- Network Infrastructure
Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- PDUs
- Other Electrical Infrastructure
Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers, and Dry Coolers
- Other Cooling Units
Cooling Techniques
- Air-based
- Liquid-based
General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Physical Security
- Fire Detection & Suppression
- DCIM
Tier Standard
- Tier I & II
- Tier III
- Tier IV
Geography
- Western Europe
- Nordics
- Central & Eastern Europe
MARKET DEFINITION
| Term | Definition |
|---|---|
| PUE | Power Usage Effectiveness — total facility energy divided by IT equipment energy; values closer to 1.0 indicate higher efficiency. |
| Redundancy (N, N+1, 2N) | Design standards describing backup capacity for power and cooling components, ranging from no redundancy (N) to fully duplicated systems (2N). |
| CRAC / CRAH | Computer Room Air Conditioner / Air Handler — equipment used to regulate temperature and humidity in the server environment. |
| Hot Aisle / Cold Aisle | Rack layout convention that separates cool air intake from hot air exhaust to improve cooling efficiency. |
| Colocation (Retail / Wholesale) | Retail colocation serves capacity needs under roughly 250 kW; wholesale colocation serves capacity needs between 250 kW and 4 MW. |
RESEARCH METHODOLOGY
Identify Key Variables
Variables and factors are tested against historical facility-level market data through an iterative process.
Build a Market Model
Market-size estimations are built in nominal terms with a consistent average selling price across the forecast period.
Validate & Finalize
Market numbers and analyst calls are validated through an extensive primary research network across levels and functions.
Research Outputs
Syndicated reports, custom consulting assignments, and facility-level databases.
Facility-level depth
Existing and upcoming facilities tracked across Europe.
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KEY QUESTIONS ANSWERED IN THE REPORT
How big is the Europe data center construction market?
What is the growth rate of the Europe data center construction market?
What is the estimated market size in terms of area in the Europe data center construction market by 2030?
What are the key trends in the Europe data center construction market?
How much MW of power capacity is expected to reach the Europe data center construction market by 2030?
Last Refreshed on : October 2026