The "Europe Data Center Colocation Market Industry Outlook Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.
The Europe data center colocation market will see the continuous adoption of cloud services among SMEs, with the heightened interest shown towards the digital transformation of businesses by adopting solutions such as IoT, big data, and artificial intelligence, attracting more investments into the Europe data center colocation market.
Organizations have a high demand for retail colocation services in developing countries. Enterprises with a limited budget and demanding geographical distribution capacities will drive the demand for retail colocation services. In 2021, Western European countries such as the U.K., Germany, Ireland, France, and the Netherlands were the leading markets that witnessed colocation investments in the European region. The western European region contributed over 75% of the Europe data center colocation market share.
The government's interest in promoting data center investments through land development, renewable energy procurement, and reducing electricity tariffs will drive the Europe data center colocation market during the forecast period. Mergers Acquisitions and Joint Ventures (JV) will lead to the entry of new colocation data center operators into the countries across the Europe region, leading to significant investments during the forecast period.
Among colocation service providers, the major Europe data center colocation market growth contributors are Equinix, Digital Realty, Global Switch, CyrusOne, Scaleway Datacenter, Beyong.pl, Green Mountain, DigiPlex, Colt Data Centre Services, and Aruba, Rostelecom, which are spending millions of dollars for facilities development.
MARKET TRENDS OPPORTUNITIES
Growing Adoption of Artificial Intelligence
Europe is one of the fastest growing countries regarding technological development and innovations. The adoption of artificial intelligence is fueling data generation and the technology market. The government takes initiatives for the growth and development of artificial intelligence. Innovation is being carried out by large-scale companies such as Siemens, Bosch, Rolls-Royce, and Airbus. Start-ups are also seen to be carried out DeepMind and FeatureSpace.
The compute load produces immense heat, which is to be reduced efficiently for the systems to run uninterruptably. Liquid-immersion systems and direct-to-chip cooling markets are seen strengthening their bonds through OEM. Many companies have set up their Research Development centers for AI other innovative applications in various European countries. For instance, AI-based R&D centers have been set up by multi-tech companies such as Samsung, Google, Oracle, and Huawei.
Increase in Sustainable Initiatives
Data centers are one of the major sources of carbon emissions worldwide. Operators are looking for sustainable initiatives to reduce the CO2 emissions generated by the centers. The European climate act was set up to make the continent carbon neutral by 2050. According to it, 75% of the total power supplied to the facilities will be carbon-free renewable energy by 2025 and 100% by 2030. The operators under the European climate act include Interxion (Digital Realty), Equinix, Scaleway Datacenter, OVHcloud, Aruba, and others.
Colt Data Centre Services stated in 2021 that their data centers are entirely running on energy produced by 100% renewable energy. Building centers certified as carbon-neutral is a trend known as a green data center which will contribute to the Europe data center colocation market. For instance, in July 2021, Maincubes announced the development of a green data center in Frankfurt, Germany, which uses free-cooling systems. European governments are also making heavy efforts toward resolving sustainability issues throughout the continent. For instance, The Government of the U.K. announced a law to help reduce CO2 emissions by around 78% by 2035.
Rising Colocation Data Center Investments
In November 2021, CyrusOne announced plans to build a data center in Frankfurt, Germany, with a power capacity of around 90MW. Also, in November 2021, CloudHQ announced the development of a facility in Paris with a power capacity of approximately 140 MW.
An increase in investments will help provide revenue opportunities to data center colocation and infrastructure providers worth billions of dollars. In April 2022, atNorth announced its plans to build a data center in Akureyri, Iceland, with a power capacity of 12MW and an area spanning 43,000 sq. ft. In June 2021, the Establishment of Norsk Datasenterindustri (Norwegian Data Center Industry) announced the data center industry in Norway. Under this association, operators such as Green Mountain and Digiplex with power companies such as Statkraft and Ringerikskraft.
Support Of The Governments For Colocation Data Centers
One of the essential enablers for facilities construction is tax incentives and breaks offered in states and countries across Europe, which helps yield high savings while incorporating other specified benefits. Most tax incentives are available in different countries, and further tax breaks will be concentrated on less developed countries to attract data center investments in the coming years.
Some of the significant initiatives done in the Europe data center colocation market are:
- The Government of France reduced the taxes on electricity for data centers, which will attract further investments in the country.
- In Switzerland, the Federal Act on Data Protection (FADP) includes adaptations to the GDPR, which helps attract further investments.
- Norway is adopting four freedoms: the free flow of goods, capital, and services in European countries to encourage investments and trading.
- The government has electricity tax exemptions for operators contributing to the district heating network in Finland.
Prominent Colocation Investors
- 3data
- 3S Group
- AQ Compute
- Artnet
- Aruba
- AtlasEdge
- atNorth
- Bahnhof
- China Mobile
- Colt Data Centre Services
- CyrusOne
- DigiPlex (IPI Partners)
- Digital Realty
- DATA4
- Echelon Data Centres
- EcoDataCenter
- EdgeConneX
- Equinix
- Euclyde Data Centers
- Global Switch
- Iron Mountain
- Green Mountain
- IXcellerate
- KDDI
- Liberty Global
- Magenta Telekom
- MTS
- Neterra
- Netia
- Nautilus Data Technologies
- NDC-GARBE Data Centers Europe
- NTT Global Data Centers
- Orange Business Services
- Proximity Data Centres
- Pure Data Centres
- Rostelecom Data Centers
- Stadtwerke Feldkirch
- T5 Data Centers
- Telecom Italia Sparkle
- Vantage Data Centers
- Verne Global
- VIRTUS Data Centres
- VK Cloud Solutions
- Yandex
- Yondr
New Data Center Investors
- ClusterPower
- Global Technical Realty
- Stratus DC Management
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of the Study
4.4 Market Segments
5 Report Assumptions Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
7 Premium Insights
7.1 Key Market Highlights
7.2 Key Trends in Europe Data Center Colocation Market
7.3 Data Center Site Selection Criteria
7.3.1 Key
8 Market Opportunities Trends
8.1 Surge in Adoption of Artificial Intelligence
8.1.1 Western Europe
8.1.2 Nordics
8.1.3 Cee
8.2 Rise in Adoption of District Heating System
8.2.1 Western Europe
8.2.2 Nordics
8.3 Increase in Sustainable Initiatives
8.4 High Acceptance of Innovative Data Center Technologies
8.5 Increase in Adoption of Advanced It Infrastructure
9 Market Growth Enablers
9.1 Increasing Data Center Investments
9.2 5G Deployments to Fuel Edge Data Centers
9.3 Growth in Cloud Service Adoption
9.4 Covid-19 Implications on Europe Data Center Market
9.5 Increasing Adoption of Big Data Iot
9.6 Government Support for Data Center Market
9.7 Growing Submarine Inland Connectivity
10 Market Growth Restraints
10.1 Security Challenges for Data Centers
10.2 Location Constraints for Data Centers
10.3 Lack of Skilled Data Center Professionals
10.4 Increase in Power Outages
11 Market Landscape
11.1 Market Overview
11.2 Investment: Market Size Forecast
11.3 Area: Market Size Forecast
11.4 Power Capacity: Market Size Forecast
11.5 Colocation Revenue: Market Size Forecast
11.6 Five Forces Analysis
12 Colocation Type
12.1 Retail Colocation
12.2 Wholesale Colocation
13 Infrastructure
13.1 Market Snapshot Growth Engine
13.2 Market Overview
13.3 Electrical Infrastructure
13.4 Mechanical Infrastructure
13.5 General Construction
14 Electrical Infrastructure
14.1 Market Snapshot Growth Engine
14.2 Market Overview
14.3 Ups Systems
14.4 Generators
14.5 Transfer Switches Switchgears
14.6 Pdus
15 Mechanical Infrastructure
15.1 Market Snapshot Growth Engine
15.2 Market Overview
15.3 Cooling Systems
15.4 Racks
15.5 Other Mechanical Infrastructure
16 Cooling Systems
16.1 Market Snapshot Growth Engine
16.2 Market Overview
16.3 Crac Crah Units
16.4 Chiller Units
16.5 Cooling Towers, Condensers, Dry Coolers
16.6 Economizers Evaporative Coolers
16.7 Other Cooling Units
17 Cooling Techniques
17.1 Market Snapshot Growth Engine
17.2 Market Overview
17.3 Air-Based Cooling Technique
17.4 Liquid-Based Cooling Technique
18 General Construction
18.1 Market Snapshot Growth Engine
18.2 Market Overview
18.3 Core Shell Development
18.4 Installation Commissioning Services
18.5 Engineering Building Design
18.6 Fire Detection Suppression
18.7 Physical Security
18.8 Dcim/Bms Solutions
19 Tier Standards
19.1 Market Snapshot Growth Engine
19.2 Market Overview
19.3 Tier I Tier Ii
19.4 Tier Iii
19.5 Tier Iv
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