Netherlands Data Center Market - Investment Analysis & Growth Opportunities 2023-2028

MARKET OUTLOOK

The Netherlands data center market size will witness investments of USD 2.38 billion by 2028, growing at a CAGR of 16.76% during the forecast period. The Netherlands is among Western Europe's most developed and established data center markets, serves as a digital gateway to Europe, and is recognized as a globally well-established and mature data center market. In March 2023, the country's Gross Domestic Product (GDP) increased by over 2.1% YOY compared to March 2022. Moreover, among the FLAP nations, the Netherlands is the least corrupt country.

The Netherlands data center market has a strong presence of Microsoft, Google, and Oracle, expanding further by constructing new data centers. In July 2022, Google purchased land of 20 hectares from the municipality of Groningen in the Netherlands to develop a data center. The construction of the data center started in the autumn of 2023. Further, Hornmeer Business Park, Sallandsekant Business Park, Fokker Logistics Park, High Tech Campus (HTC), and Amsterdam Science Park are some of the business/industrial parks located in the country.

In terms of sustainability, the Netherlands has the availability of wind energy, offshore wind energy, solar, biomass energy, and geothermal energy. The country aims to generate around 70% of its electricity from renewable energy sources by 2030. The Dutch central government has set a target to eliminate greenhouse gas emissions by 2050. Further, in April 2023, Microsoft received permission from the North Sea Canal Area Environment Agency (OD NZKG) for the final environmental permit for the construction and operation of Microsoft’s data center in Hollands Kroon, in the north of the Netherlands. Also, in February 2022, the Netherlands' Ministry of the Interior passed strict regulations for developing hyperscale data center facilities until the new national regulations for hyperscale data centers were passed.

KEY HIGHLIGHTS

• The Netherlands data center market has the presence of around nine existing submarine cables. In contrast, there is an upcoming submarine cable in the country, namely BT North Sea, which is under development and is expected to be operational during 2023.
• The Netherlands data center market has witnessed several power purchase agreements (PPA) from significant operators to adopt renewable energy power sources for their data center operations and achieve the target set by the government of carbon neutrality. For instance, in June 2023, Google signed a Power Purchase Agreement (PPA) with Kronos Solar EDPR to procure solar energy in the Netherlands.
• In October 2023, the Netherlands Dutch Digital Infrastructure Agency (RDI) and the United Nations Educational, Scientific and Cultural Organization (UNESCO) launched a project to support European national agencies to supervise artificial intelligence (AI).
• In October 2023, Dutch Vocational College, in partnership with Digital Realty, launched a new demonstration data center in Amsterdam to teach data center skills to students.
• Operators in the Netherlands data center market have turned the excessive heat from facilities challenge into an opportunity by leveraging the excess heat generated by data center servers for residential heating during the winter season. For instance, in April 2023, Dutch Telco VodafoneZiggo announced they would connect their data center facility to Tilburg's new district heating scheme.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Netherlands colocation market revenue.
• An assessment of the data center investment in the Netherlands by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Netherlands data center market landscape, an in-depth industry analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in the Netherlands
  • Facilities Covered (Existing): 115
  • Facilities Identified (Upcoming): 06
  • Coverage: 45+ Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in the Netherlands
  • Market Revenue & Forecast (2022-2028)
  • Retail Colocation Pricing
• The Netherlands data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• In 2023, the Netherlands is witnessing investments from Global Switch, NorthC, Microsoft, Switch, Digital Reality, and Google in six data center facilities nationwide. The Netherlands data center market is also witnessing investment from the new entrant Yondr.
• The Netherlands data center market has around 115 operational colocation facilities. Some of the prominent colocation operators in the country included Digital Realty, Equinix, EdgeConneX, Colt Data Centre Services, CyrusOne, QTS Realty Trust, NorthC, Global Switch, NTT Global Data Centers, Serverfarm, Keppel Data Centres, Switch DataCenters, Iron Mountain, and Interconnect.
• The country is also witnessing land acquisitions from global operators to expand their data center footprints nationwide. Some of the land acquisitions:
  • In August 2023, Principal Asset Management acquired a logistics facility in the Netherlands, intending to transform it into a data center to meet the growing demand for digital infrastructure. The facility covers an area of 266,460 square feet, and the land will be leased and converted into a data center by Switch Datacenters.
  • In June 2023, Digital Reality acquired land in Amsterdam to develop the data center facility measuring around 36,000 square meters of area.
  • In July 2022, Google acquired around 20 hectares of land in Groningen, Netherlands, for potential data center development in the future. The company planned to start the construction in 2023.
• The Netherlands data center market is also witnessing mergers and acquisitions to increase their foothold in the country.
  • In May 2023, CapMan Infra, a strategic investor in infrastructure projects, invested in the Dutch IT infrastructure provider Serverius. They aim to form a northern European data center platform.
  • In August 2022, Macquarie Asset Management, an Australia-based asset management firm, announced the acquisition of a minority stake in ST Telemedia Global Data Centres’ UK unit, VIRTUS Data Centres.
  • In November 2021, AtlasEdge announced the acquisition of 12 data centers from Colt Data Centre Services (DCS) across Europe. Among the 12 data centers, one facility is in Amsterdam, the Netherlands.
• Most of the Netherlands' data centers invest in green energy to eliminate carbon emissions. In December 2022, NorthC Datacenters developed its Jenbacher data center facility with INNIO’s green H2 engines to provide carbon-free emergency backup solutions for its data center.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Amsterdam
  • Other Cities
• List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Netherlands data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • 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 and CRAH Units
  • Chillers Units
  • Cooling Towers, Condensers, and Dry Coolers
  • Economizers and Evaporative Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV
• Geography
  • Amsterdam
  • Other Cities

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Extreme Networks, Hewlett Packard Enterprise, Huawei Technologies, IBM, Juniper Networks, Lenovo, NetApp, Oracle, Pure Storage, and Wistron.
• Data Center Construction Contractors & Sub-Contractors: Arup, Benthem Crouwel Architects, Deerns, DORNAN, DPR Construction, HDR (Hurley Palmer Flatt), Kirby Group Engineering, Linesight, Mercury, Red, Royal HaskoningDHV, Salute Mission Critical, Turner & Townsend, and Winthrop Engineering and Contracting.
• Support Infrastructure Providers: ABB, Alfa Laval, Caterpillar, Climaveneta, Cummins, Delta Electronics, Eaton, Güntner, HITEC Power Protection, Johnson Controls, KOHLER-SDMO, KyotoCooling, Legrand, Piller Power Systems, Riello Elettronica, Rittal, Rolls-Royce, Schneider Electric, Socomec, Stulz, Siemens and Vertiv.
• Data Center Investors: AtlasEdge, CyrusOne, Digital Reality, Equinix, EdgeConnex, Global Switch, Google, Interconnect, Iron Mountain, Keppel Data Centres, Microsoft, North C, NTT Global Data Centers, and QTS Realty Trust.
• New Entrants: Yondr