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GDPR Driving Data Center Construction Market in Europe

Published date : Apr-2019

Equinix, Interxion, Digital Realty, NTT (e-Shelter), and CyrusOne (Zenium) are the major colocation investors in Europe.


Arizton’s recent market research report on the Europe data center construction market provides a comprehensive industry analysis, trend forecasts, and competitive analysis. The research study segments the data center construction market in Europe by electrical infrastructure (UPS systems, generators, transfer switches and switch gears, rack PDUs, and others electrical infrastructure), mechanical infrastructure (cooling systems, racks and other infrastructure), tier standards (Tier I&II, Tier III, and Tier IV), general construction (building design, building development, physical security, DCIM, installation, and commissioning services), and countries (Western Europe: Netherlands, UK, Germany, and France), (Central and Eastern Europe: Russia  and Czech Republic, Poland and Austria, and other countries), and the Nordic region (Denmark, Finland, Sweden, Iceland, and Norway). The market research report on data center construction market in Europe also offers market share analysis in terms of area (square feet) and power capacity (MW) during the forecast period.

The data center construction market in Europe is expected to reach $13 billion, growing at a CAGR of around 5% during 2018−2014.

The demand for data center services such as colocation, managed services, and cloud-connectivity services will gain momentum as over 55% of firms in Europe use advanced cloud services for their financial and accounting requirements. The demand for smart devices, coupled with growing internet penetration, will also fuel the growth of data centers and corresponding infrastructure in the region.

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Big Data and IOT will increase investments across secondary data center market

The usage of big data technology across industries brings new opportunities for data center infrastructure providers, especially for storage and network infrastructure. Europe is one of the leading active data markets. The European data center market expected to grow at a CAGR of 16% by 2023. About 70% of the market is concentrated in Germany, France, Italy, Spain, and the UK. These regions are expected to be the largest interconnected market. EdgeConnex and other colocation service providers have also planned to establish facilities in many secondary data center markets in the region, and the investment will highly depend on the adoption of big data and IoT technologies that will lead to data generation and need for strong computing power in the continent.

Demand for colocation thriving data center construction market in Europe

There is a growing demand for colocation spaces among sectors such as BFSI, media and entertainment, and government agencies. The major benefits of colocation and managed service providers toward the data center investment are 50% pre-leased under development projects, reduction in CAPEX and OPEX due to addition of energy-efficient infrastructure, the procurement of renewable power for data center operations, the installation of racks with high-power density, cloud connectivity, tapping edge market opportunities, providing higher bandwidth, and retention of existing customer base.

The data center construction market in Europe is growing due to the completion and under construction of 100 new colocation facilities and expansion projects.

In 2018, projects that were had opened and under construction added over four million square feet of estimated data center space and generated over 750 MW of power capacity in Western Europe. Equinix, Interxion, Digital Realty, NTT (e-Shelter), and CyrusOne (Zenium) are the major colocation investors in the region. In 2018, Equinix announced to invest in eight new facilities in Western Europe, Nordic, and Central Europe, which are expected to operate by the end of 2019.

Increasing automation in datacenters

Artificial Intelligence (AI) technology is helping data centers to be more efficient and environment-friendly. In 2016, Google implemented DeepMind AI in its data centers for end-to-end monitoring and automation of its facilities. This has resulted in a 15% power saving cost and around 40% savings by cooling systems in its data centers.

It is expected that over 90% of hyperscale facilities will be managed through AI by 2024.

However, the lack of skilled workforce in a few European countries will lead to the adoption of automation solutions in the data center market. Datacenter automation identifies the maintenance requirement of infrastructure to avoid operational failures. A majority of infrastructure vendors in the data center construction market in Europe are heavily investing in software solutions that monitor power and cooling infrastructure.

The data center construction market in Europe vendors include the following:

AECOM, Arup Group, Bruce Shaw, Cap Ingelec, DPR Construction, Etix Everywhere, Flex Enclosure, Future-tech, Jones Engineering, KMCS, LUPP Group, Mace group, Mercury engineering, NCC, Red Engineering, Skanska, SISK Group, and Structure Tone are the prominent data center construction contractors.

ABB, Bosch Security, Caterpillar, Cummins, Eaton, EURO-DIESEL, Hitec Power Protection, KOHLER, Legrand Group, MTU OnSite Energy, Nlyte Software, Piller Power Systems, Riello UPS, Rittal, Schneider Electric, Socomec Group, STULZ, and Vertiv are the prominent infrastructure providers.

Adgar, Advania Data Centers, Apple, Aruba, AWS, Colt Data Centre Services (COLT DCS), CyrusOne, Digital Realty, Equinix, Facebook, Google, Global Switch, Iliad Data Center, Interxion, IXcellerate, Microsoft, NTT Communications, OVH, STT GDC, T-Systems, and T5 Data Centers are the prominent data center investors.

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The complete overview of the latest market research report on the data center construction market in Europe by Arizton is now available.

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

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