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Hyperscale Data Center Market in Western Europe & Nordic - GDPR to Boost Investment in the Region

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Arizton’s recent market research report on the hyperscale data center market in Western Europe & Nordic provides comprehensive industry analysis, trend forecasts, and competitive analysis. The study segments the market by IT infrastructure (server, storage, and network), by electrical infrastructure (UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure), by mechanical infrastructure (cooling systems, rack, and other infrastructure), by general construction (building development, installation and commissioning services, building design, physical security, and DCIM), by geography (Western Europe and Nordic), and offers detailed competitive analysis.

The hyperscale data center market in Western Europe & Nordic is anticipated to reach revenues of approximately $29 billion by 2023, growing at a CAGR of around 10% during 2017-2023.

The research report also offers market share analysis in terms of area (square feet) and power capacity (MW) during the forecast period. Leading vendors such as Apple, Facebook, Google, AWS, Microsoft, Alibaba, OVH, and Aruba are increasingly investing in the development of the Western European and Nordic market. The growing network traffic, industrial revolution 4.0 specifically in Germany, adoption of big data, and IoT technologies will augment the growth of the hyperscale data center market in Western Europe & Nordic.

Check our Latest Report on Data Center Market in Western Europe!

The top 3 drivers and trends contributing to the growth of the hyperscale data center market in Western Europe & Nordic are discussed below:

GDPR Will Continue to Increase Hyperscale Investment in the European Market

The increasing focus on data privacy and the establishment of stringent regulations that for data security is fueling the development of the hyperscale data center market in Western Europe & Nordic. In May 2018, the European Union established the General Data Protection Regulation (GDPR), which restricts datacenter operators to store personal data outside the European Union. The implementation of GDPR will augment the development of hyperscale data center market in Western Europe & Nordic. The advent of cloud-based services will encourage cloud service providers to invest in the deployment of wholesale colocation spaces in the Europe. The concerns about the protection of personal data will lead local operators to improve the services offered as the economy moves towards digitalization. Various compliance regulations such as Gramm-Leach-Bliley Act, the Health Insurance Portability and Accountability Act (HIPAA), the Sarbanes–Oxley Act of 2002, the Payment Card Industry Data Security Standard (PCI DSS), and Canada's Personal Health Information Protection Act (PHIPA) in the healthcare sector is fueling the growth of the market. The need for regulatory compliance and the implementation of data security and privacy policies will contribute to the growth of the hyperscale data center market in Western Europe & Nordic.

Read: Switzerland Data Center Market - Investment Analysis and Growth Opportunities 2021-2026

Nordic Countries Competing to Attract Hyperscale Investment through Tax incentives

Tax incentives are one of the major site selection criteria and help generate lucrative business opportunities for sub-contractors in the hyperscale data center market in Western Europe & Nordic. The availability of resources such as renewable energy sources, reliable power supply, availability of water for cooling, and the presence of fiber connectivity are some of the factors that impact site selection process. The government agencies are offering tax breaks and other benefits to attract a maximum number of investments in the hyperscale data center market in Western Europe & Nordic. These tax incentives yield millions of dollars savings for hyperscale data center market operators. For instance, in 2017, Sweden reduced the electricity tax rate by 97% to promote facilities development in the region. Soon after Sweden, countries such as Norway, Finland, Denmark, and Iceland reduce their tax rates to attract new investments in the market. Sweden, Norway, Finland, Denmark, and Iceland also facilitate datacenter operations on 100% renewable energy. The drastic improvements of fiber connectivity networks will lead to a higher number of data center construction in Nordic over the next few years. The regional government in Finland and Norway are also offering land for facilities development to build digital economies in the region. These initiatives will contribute to the growing revenues in the hyperscale data center market in Western Europe & Nordic.

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Increase in Adoption of OCPs and Hyperscale Specific Infrastructure

The innovations in IT and support infrastructure is fueling the growth of the hyperscale data center market in Western Europe & Nordic. The OPC community focuses on providing facility infrastructures such as servers, storage,and network devices, power, and cooling solutions in the market. Leading facility operators such as Facebook, Google, Microsoft, Tencent, Alibaba, and IBM are also members of OCP along with ODM suppliers such as QCT, and Wiwynn. The leading vendors are focusing on designing components that offer higher flexibility for specific or multiple related services that help in reducing power consumption. The developments in the OCP community will initiate development in the hyperscale data center market in Western Europe & Nordic. The OCP community also offers innovations in facility power and cooling solutions, IT space layout and designs, DCIM solutions, and facility operations. Significant focus on the efficiency and flexibility of operations will contribute to the revenues in the hyperscale data center market in Western Europe & Nordic.

The leading vendors in the hyperscale data center market in Western Europe & Nordic are  Apple, Aruba S.P.A, Facebook, Google, Microsoft, OVH, and IBM

The complete overview of the latest market research report onthe hyperscale data center market in Western Europe & Nordic 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 on: Hyperscale Data Center Market in APAC- Industry Outlook and Forecast 2020-2025

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