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Western Europe and Nordic Data Center Market Size, Share, Trends Analysis Report by IT Infrastructure (Servers, Storage, and Network), Electrical Infrastructure (UPS Systems, Generators, Transfer Switches and Switchgears, PDUs, and Other Electrical Infrastructures), Mechanical Infrastructure (Cooling Systems (CRAC & CRAH Units, Chiller Units, Cooling Towers, Dry Coolers, & Condensers, economizers and evaporative coolers, and Other Units), Racks and Other Mechanical Infrastructure), Cooling Technique (Air-based Cooling and Liquid-based Cooling), General Construction (Core and Shell Development, Installation and Commissioning Services, Engineering and Building Designs, Physical Security, and DCIM/BMS), Tier Standards (Tier I & II, Tier III, and Tier IV), and Geography (Western Europe and Nordic), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2021–2026
|Market Size (Investment)||USD 45 BILLION (2026)|
|Market Size ( Area)||8.5 MILLION SQ FT|
|Market Segments||IT Infrastructure (Servers, Storage, and Network); Electrical Infrastructure (UPS Systems, Generators, Transfer Switches and Switchgears, PDUs, and Other Electrical Infrastructures); Mechanical Infrastructure (Cooling Systems (CRAC & CRAH Units, Chiller Units, Cooling Towers, Dry Coolers, & Condensers, economizers and evaporative coolers, and Other Units), Racks and Other Mechanical Infrastructure); Cooling Technique (Air-based Cooling and Liquid-based Cooling); General Construction (Core and Shell Development, Installation and Commissioning Services, Engineering and Building Designs, Physical Security, and DCIM/BMS); Tier Standards (Tier I & II, Tier III, and Tier IV);|
|Geographic Analysis||Western Europe and Nordic|
|Countries Covered||UK, Germany, France, Netherlands, Ireland, Belgium, Switzerland, Luxembourg, Italy, Spain, Denmark, Norway, Sweden, and Finland & Iceland|
Western Europe and Nordic data center market size to reach USD 45 billion by 2026, growing at a CAGR of 4% during the forecast period. The market witnessed supply chain-related challenges in Q1 and Q2 2020 for IT infrastructure and support infrastructure providers. However, these recovered in Q3 2020. The market growth was aided by previously announced projects and facilities in a few locations where data centers were deemed essential services. Cloud-based service providers contribute a majority of the demand for data center services.
Western Europe and Nordic data center market share has observed steady growth since the onset of the COVID-19 pandemic. Country-wide lockdowns aided the demand for internet-related services. IT services, BFSI, hospitals, and education sectors have initiated remote working, which further increased new data center development. Colocation service providers witnessed a strong uptake for data center spaces by existing customers owing to the growth in demand due to the viral outbreak.
Cloud service providers and video conferencing service providers have been major contributors to colocation uptake. Colocation uptake led to multiple new announcements for data center developments. Furthermore, the impact of COVID-19 has been unprecedented on the IoT devices market. IoT-enabled devices have witnessed high acceptance for monitoring and surveillance purposes, especially in the healthcare sector during the pandemic.
Since the implementation of the GDPR (Global Data Protection Regulation) in May 2018, Western Europe and the Nordic market have witnessed growth in investments. The adoption of cloud-based, big data analytics and IoT services has grown significantly among local enterprises across countries in the region, boosting local colocation and managed-to-host services demand in the market. The Nordic region has been a favorable investment destination for developing hyperscale data center operators, colocation providers, and cryptocurrency data center operators.
This research report includes a detailed segmentation by:
In 2020, the IT infrastructure adoption among newly established and existing data centers grew significantly. Germany is the leading market in IT infrastructure spending, followed by the UK, the Netherlands, France, and Ireland. The emergence of software-defined architectures and converged infrastructure expects to drive the IT infrastructure solutions market in Western Europe. Similarly, the increasing adoption of cloud computing services in the Nordic region leads to increased procurement of IT infrastructure components. Finland, Sweden, and Denmark are the leading contributors to cloud adoption, with 50% of enterprises using cloud computing services.
Several Western Europe facilities have adopted flexible designs to facilitate dual power feeds, 2N redundant UPS and PDU systems, and N+1 generators. The growth of lithium-ion UPS systems is aided by benefits such as reducing the OPEX through lower maintenance costs and decreasing UPS battery failure chances. Vendors are continuously coming out with innovative UPS solutions to boost efficiency and reduce cost. The construction of large and mega data center facilities in Western Europe and Nordics is likely to aid the generators market. DRUPS solutions are likely to witness high demand among data centers, with multiple modules having the capacity of up to 2 MW in N+N redundant configurations.
DRUPS solutions are likely to witness high demand in the Nordic data center market, with multiple modules having the capacity of up to 2 MW in N+N redundant configurations. Most Nordic region facilities are powered by renewable energy with grid stability of over 95%, which is likely to reduce the usage of redundant generator systems. The use of basic PDUs is comparatively low, with the high procurement of metered and monitored PDU systems.
Several Western Europe data centers support free cooling systems that include adiabatic coolers, evaporative coolers, and free cooling chiller systems. Water-based cooling includes water-treatment plants and systems that can aid water consumption by up to 20%. Most operators procure 45U–52U rack cabinets. The procurement of 42U racks is declining in the market.
Most data centers in the Nordic region use free cooling techniques. The Nordic data center market offers free cooling for over 8,400 hours per year. The use of free cooling systems is likely to add revenues to the market during the forecast period. The use of lake/river/ocean water to cool data center facilities in the Nordic region will maximize revenues for water-based cooling techniques in the market.
Western Europe is the most active market for data center construction in Europe. The increase in data center demand has increased revenue opportunities for contractors and sub-contractors in the industry. A significant data center construction in the region is managed by Europe-based construction service providers, including architects and engineering firms. However, the non-availability of a skilled workforce to handle multiple hyperscale projects is a major challenge for several contractors in the region. Hyperscale data center development will be a major boost for contractors and sub-contractors operating in the Nordic region. Most hyperscale projects are built in collaboration with global data center construction contractors and sub-contractors.
Western Europe and Nordic data center market size by tier standards is expected to reach approx. USD 12 billion by 2026, growing at a CAGR of over 5%. There are 112 Tier III certified facilities in Western Europe and the Nordic region, including the UK, Spain, Italy, and Lithuania. Most new data centers are designed to be of Tier III standards with a minimum of N+1 redundancy. The European region hosts around 50 facilities that are Tier IV certified facilities. Denmark, France, Greece, Italy, Luxembourg, the Netherlands, Norway, Spain, Switzerland, and the UK have several Tier IV facilities. These facilities are equipped with at least 2N+1 redundancy in the infrastructure, making the facility fault-tolerant, with UPS systems and PDUs having 2N+2 redundancy. Facebook, Apple, Google, and Microsoft are major hyperscale developers.
The Western Europe data center market is likely to witness growth due to the adoption of cloud services among SMEs, with the increased interest in the digitalization of businesses. The demand for smart devices, coupled with growing internet penetration, will fuel the growth and corresponding infrastructure in the region. Western Europe data centers are built to support OCP rack infrastructure solutions. The UK, the Netherlands, Germany, and France are the leading destinations for data center development.
The Nordic region has been a favorable location for hyperscale data center operators, colocation providers, and cryptocurrency operators. Hyperscale operators open cloud regions in the region to support local and regional customers. The adoption of cloud-based services, big data analytics, and IoT services has grown significantly by local enterprises across countries in the Nordic region, boosting local colocation demand in the market. Moreover, governments in Nordic countries such as Sweden are fueling the digital economy's growth by funding fiber installations. The availability of renewable energy sources is the primary market driver, and several countries in the region facilitate free cooling throughout the year. A majority of facilities are powered by renewable energy sources in the Nordic region.
Western Europe and Nordic data center market consists of several IT infrastructure, electrical, mechanical, and general construction service providers. Huawei Technologies, Super Micro Computers, Atos, and NEC are the major IT infrastructure vendors. Atos experiences strong demand for its infrastructure solutions in the Western Europe and Nordics markets. The data center market by electrical infrastructure has become competitive due to increased interest displayed by operators in procuring energy-efficient infrastructure solutions. Several data center requirements from service operators prompt vendors to develop innovative products with over 90% efficiency in performing data center operations and reducing OPEX by up to 50%. The Western Europe and Nordics data center market comprises several local and global construction contractors, architectural and engineering firms, physical security vendors, and DCIM solutions providers. Revenue opportunities for vendors are high due to the growing construction of hyperscale data centers.
By IT Infrastructure
By Electrical Infrastructure
By Mechanical Infrastructure
By Cooling Technique
By General Construction
By Tier Standards
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