Will District Heating Concept Expand Across the European Data Center Colocation Market?

Sep 27, 2018

Leading vendors are adopting the concept of district heating to reduce carbon emissions in the European data center colocation market.

Arizton’s recent market research report on the European data center colocation market provides comprehensive industry analysis, trend forecasts, and competitive analysis. The research study segments the market by investment (electrical infrastructure, mechanical infrastructure, and general construction), by service type (retail and wholesale), by geography (Western Europe, Nordic, Eastern Europe, and Middle East and Africa), and offers detailed competitive analysis.

The EMEA data center colocation market is projected to record investments of approximately $10 billion by 2023, growing at a CAGR of around 9% during 2017-2023.

The research report offers market size analysis regarding colocation services during the forecast period. The increasing adoption of cloud-based services and improvement in fiber connectivity across the region is augmenting the growth of the European market. The growing investments by colocation providers across the UK, Germany, France, Ireland, Spain, Italy, Netherlands, Switzerland, Portugal, and Austria will fuel the growth of the European data center colocation market.

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The top 3 drivers and trends contributing to the development of the European data center colocation market are discussed below:

Data Regulation Will Increase Data Center Investment

The implementation of stringent regulations about privacy and security of data processed by facilities and consumers is driving the evolution of the European data center colocation market. In April 2016, the European Union adopted the General Data Protection Regulation (GDPR), which came into effect from May 2018. The implementation of GDPR is boosting the investments and demand for colocation services across several countries in the Europe market. Stringent data privacy regulations will increase the demand for datacenter services such as colocation, managed services, and cloud services and create lucrative opportunities for vendors operating in the European data center colocation market. Several organizations such as healthcare and financial services must abide by certain regulatory compliances for storing and processing data in the European market. Such sensitivity and privacy requirement of data will boost datacenter investments in the European market. The consumers are verifying PCI compliances to ensure the safety of data hosted in the facility which will result in the deployment of secure modular facilities in the market. The growing need for regulatory compliance from the government will have a significant impact on the development of facilities across several locations in the European data center colocation market.

IoT demand in Western Europe will increase Edge Data Centers Deployments

The increasing adoption of IoT services and other connected devices will boost the deployment of edge datacenters across the Western European region in theEuropean data center colocation market. Major metros such as London, Frankfurt, Milan, Paris, Vienna, Warsaw, Dubai, Riyadh, Johannesburg, Cape Town, and Nairobi are attracting significant investments in the European market. The advent of edge computing and growing demand for bandwidth in rural areas is resulting in a higher number of deployments in the European data center colocation market. Several colocation providers are involved in the development of datacenters across edge locations in the market. EdgeConnex, leading provider of edge datacenter services is expanding to the European market with the construction of edge facilities. The rapid deployment ofinnovative facilities namely, modular, containerized, and POD facilities will boost revenues in the European data center colocation market. POD facilities are a single rack of facilities systems, with power and cooling integrated to provide higher performance for data processing applications at the edge locations in the market. The exponential proliferation of internet across the Eastern European and Africa region will positively impact the European data center colocation market.

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Increasing Popularity of District Heating Concept

The growing popularity of district heating concept across the region will transform the European data center colocation market during the forecast period. The facilities are the major consumers of power and water in the market. The process of converting the disadvantage of operating a facility in a locality to its advantage by supplying waste heat emitted by servers to cool district homes during winters is district heating. Various leading vendors are adopting the concept of district heating to reduce carbon emissions in the European data center colocation market. For instance, TeliaSonera Finland datacenter will supply waste heat to the nearby homes in Espoo and DigiPlex is supplyingdatacenter waste heat to warm 10,000 apartments via the local district heating system in the market. The concept of district heating is gaining popularity among facilities operators and local governments in the Nordic region. The increasing adoption of these systems will revolutionize the European data center colocation market.

The leading vendors in the EMEA data center colocation market are CyrusOne (Zenium), Deutsche Telekom, Digital Realty, Equinix, Interxion, Global Switch, and NTT Communications.

The complete overview of the latest market research report on European data center colocation market by Arizton is now available.

The report also offers a detailed study of major trends, drivers, challenges, and also provides the market size and forecast for major geographical regions and key countries.

Read Our Latest Report: Data Center Colocation Market - Global Outlook and Forecast 2020-2025

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We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare, and life sciences, industrial machinery, chemicals and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.

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