1. Market Research
  2. > ICT
  3. > Data Center Market Trends
Data Center Market in Western Europe - Industry Outlook and Forecast 2020-2025

Data Center Market in Western Europe - Industry Outlook and Forecast 2020-2025

  • April 2020
  • 343 pages
  • ID: 5881118
  • Format: PDF
  • Arizton


Table of Contents

Search Inside

COVID-19 is going to affect the data center market in Western Europe. A detailed analysis is included in the report.

The data center market in Western Europe by investment is expected to grow at a CAGR of over 1% during the period 2019–2025.

The implementation of the General Data Protection Regulations (GDPR) is expected to boost the data center market in Western Europe. As cloud-based services in Western Europe include hosting database, office software, financial and accounting, managing customer relationships and computer services, the demand for colocation, managed, and cloud-connectivity services will gain momentum. Several SMEs are looking to adopt cloud services such as PaaS and SaaS, and it is expected that more than 90% of SMEs in Western Europe will operate businesses through the cloud by 2024. The demand for hybrid infrastructure services is expected to grow at a CAGR of over 25% during the forecast period.

The increase in demand for data center services in Europe has led to the rise in merger and acquisition agreements. Also, data center construction is still growing at a significant rate, with large service providers investing in new construction and expansions in the European region. Besides, the data center colocation market in Europe is also witnessing increased interest from real estate and investment firms. The Europe data center market witnessed significant mergers and acquisition activities by US-based and APAC-based organizations. In 2019, QTS Realty Trust entered the market through the acquisition of TCN SIG Telehousing BV in the Netherlands. The market is also witnessing an increase in partnerships to develop and expand data center presence. For instance, Equinix partnered with GIC to invest over $1 billion for expansion activities in Europe in 2019.

The following factors are expected to contribute to the growth of the data center market in Western Europe during the forecast period:
•Regulations driving Cloud Investments
•Growth in Colocation & Hyperscale Investments
•High Procurement of AI-based Servers
•Increase in Procurement of Green Energy
•Usage of Lithium-ion Batteries & Fuel Cells in Data Centers

Data Center Market in Western Europe: Segmentation

This research report includes detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, tier standards, and geography. The IT spending market is growing significantly YOY with Germany, Netherlands, the UK, France, and Ireland emerging as major markets. The growth is majorly driven by enterprises transforming from on-premise IT infrastructure to colocation and hyperscale and cloud operators. The server market witnessed strong growth in 2019. The procurement of ODM servers by hyperscale operators, cloud builders, and other enterprises has been a significant boost to the market. Several modern operators are involved in the adoption of server infrastructure that matches workload.

The demand for servers will continue to grow moderately as enterprises are likely to move to the cloud or colocation platforms during the forecast period. There will be an increase in demand for servers that support AI and ML application workloads. The market will also witness the adoption of AI servers as the market for high computing systems is increasing. The adoption of AI servers will increase during the forecast period in countries such as the UK, Germany, and the Netherland. There will be an increase in demand for servers with multicore processors, and the memory will grow as the average number of virtual machines per physical server continue to grow. Hyperscale operators are also expected to adopt advance storage mechanisms in new hyperscale facilities in the region.

The power systems market is expected to grow due to increasing greenfield construction, particularly greater than 10 MW. The penetration of lithium-ion battery systems is steadily growing in the market due to their reduced prices. The market is expected to look for integrated battery monitoring solutions along with infrastructure procurement at a low cost. The generators market will continue to grow because of the continuous construction of large and mega facilities. Several facilities in Western Europe adopt generators with low redundancy are they are supplied power from dual grids, with grid availability of over 99%. Also, there are facilities powered by renewable energy, where the need for redundant generators is low. The adoption of Diesel Rotary Uninterruptible Power Supply (DRUPS) systems is moderate in the market as they combine both battery and flywheel UPS topology and diesel generators to provide backup power during outages. These systems are highly reliable, efficient, and require less maintenance.

The favorable climatic conditions and the availability of renewable resources such as wind energy have helped data center operators to benefit from free cooling in the UK. Several facilities have adopted water-based cooling systems to cool their facilities. Also, the UK is the leading market for liquid-immersion cooling. Many data centers built in Germany are adopting free cooling to cool the facility. These facilities use redundant water and air-cooled system supported by free cooling with N+1 redundancy and CRAH units with N+1 configuration. In France, a majority of facilities are adopting free cooling solutions and several prefer water-based cooling using chillers. Facilities mostly prefer free cooling due to favorable climatic conditions. The facilities use CRAC units and chillers with free cooling in N+1 redundant configuration and cold aisle containment. The Netherlands market is witnessing significant growth in the adoption of free cooling systems. Enterprises are implementing redundant water and air-cooled systems supported by free cooling with N+1 redundancy and CRAH units with N+1 redundancy.

The data center market in Western Europe is expected to witness greenfield construction largely. High investments from hyperscale providers will become a major driver for revenue generation for general contractors and sub-contractors in the market. The UK market witnessed over 20 data center projects that were opened or under construction in 2019. Among them, about ten facilities were opened in 2019, and remaining facilities are likely to open by June 2020. Several facilities are built with multi-level security. There is an increasing demand for IP video surveillance systems in the market. APL, TPF Ingénierie, and CAP INGELEC are some of the notable players providing construction services in France. In terms of physical security, there is a growing demand for IP video surveillance systems in the market. A majority of facilities developed in the Netherlands is expected to be greenfield development projects during the forecast period. Equinix, CyrusOne, Microsoft, Digital Realty, and Interxion carry out greenfield development in France.

Data centers of Tier II standards are designed with minimal redundancy. There are a few facilities in Western Europe that are Tier II certified based on designing and construction. In these facilities, redundancy is recognized between UPS and PDU systems. A majority of under-developed projects across the globe fall under the Tier III category. This trend is likely to continue in Western Europe during the forecast period, with many operators expected to move to Tier IV standards due to the growth in rack power density and critical data center applications. Germany is witnessing the highest number of Tier III facilities, followed by the UK, France, and the Netherland. Most facilities in France are Tier III certified by the Uptime Institute. The use of OCP infrastructure is likely to increase among colocation providers in the country during the forecast period.

Insights by Geography

The adoption of cloud services is one of the major drivers for the UK data center market. Several government departments are migrating to the cloud environment. Over the past eight years, the government has saved over $100 million in data center consolidation. With the UK likely to move out of the European Union, service providers are expected to face stringent rules and regulations regarding the storage and processing of data outside the country.
The IT and telecommunication industries are predominant adopters of cloud computing, followed by the transportation sector in the country. In Germany, NDC Data centre, Interxion, Digital Realty, Equinix, Global Switch, CyrusOne, NTT (e-Shelter), Etix Everywhere, and Colt DCS are the major investors invested in multiple facilities. In Germany, Frankfurt, Munich, Offenbach, and Hamburg witnessed investment in 2019.

Key Country

Key Vendor Analysis
The Western Europe data center market continues to grow for greenfield, brownfield, and modular data center construction. The market is witnessing increased growth in the number of facilities, with high adoption of efficient and modular infrastructure solutions. It has a strong presence of vendors across all categories – IT, electrical, and mechanical infrastructure.

The adoption of ODM-based infrastructure solutions is increasing in penetration among enterprise operators in Europe. The deployment of OCP-ready data centers by colocation operators has aided this growth. HPE, Dell Technologies, Atos, IBM, Cisco, and Lenovo have a strong presence in the region.

Prominent Data Center Critical (IT) Infrastructure Providers
•Dell Technologies
•Extreme Network
•Hewlett Packard Enterprise (HPE)
•Hitachi Vantara
•Inspur Group
•Pure Storage
•Quanta Cloud Technology (Quanta Computer)
•Super Micro Computer
•Wistron (Wiwynn)

Prominent Data Center Investors
•Aruba S.P.A
•AWS (Amazon Web Services)
•Bulk Infrastructure
•Colt Data Centre Services (CCS)
•Digital Realty
•Global Switch
•NDC Data Centers
•NTT Communications
•Scaleway Data Center

Prominent Construction Services Providers
•Arup Group
•Cap Ingelec
•DPR Construction
•Etix Everywhere
•Flex Enclosure
•Jones Engineering Group
•Kirby Group Engineering
•LUPP Group
•Mace Group
•Mercury Engineering
•M+W Group
•Red Engineering
•SISK Group
•Structure Tone

Prominent Infrastructure Providers
•Airedale Air Conditioning
•Alfa Laval
•Bosch Security Systems (Robert Bosch)
•Delta Group
•Euro-Diesel (KINOLT)
•Hitech Power Protection
•Nlyte Software
•Piller Power Systems
•Riello UPS
•MTU On Site Energy (Rolls-Royce Power Systems AG)
•Schneider Electric
•Trane (Ingersoll Rand)

Key Market Insights Include
The report provides the following insights into the data center market in Western Europe during the forecast period 2020–2025.
1.It offers comprehensive insights into current industry trends, trend forecasts, and growth drivers about the data center market in Western Europe.
2.The report provides the latest analysis of share, growth drivers, challenges, and investment opportunities.
3.It offers a complete overview of segments and the regional outlook of the data center market in Western Europe.
4.The study offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.
Ahmad helps you find the right report:

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.


Reportlinker.com © Copyright 2020. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on