The "Europe Hyperscale Data Center Market Industry Outlook Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.
The Europe hyperscale data center market is witnessing substantial growth, with a projected value of $39.69 billion by 2028, up from $28.42 billion in 2022, representing a commendable CAGR of 5.72% from 2022 to 2028.
Nordic and Western Europe have emerged as prime destinations for hyperscale investment, attracting operators due to the availability of free and air-based cooling. Spain and Portugal have also emerged as new destinations for hyperscale data center development within Western Europe.
Major cloud players like Microsoft, Google, and Meta are leading investors in this market, while Equinix, Digital Realty, Vantage Data Centers, CyrusOne, and NTT are key colocation operators actively developing hyperscale facilities across Europe.
The post-COVID rapid digitalization and GDPR have accelerated the demand for hyperscale facilities, leading operators to source renewable energy and adopt sustainability initiatives like the Climate Neutral Data Center Pact.
The Western Europe and Nordics regions, favored for their cooling advantages, remain the top choices for hyperscale facility development in the European market.
KEY TRENDS
High Adoption of Artificial Intelligence
- Artificial intelligence is making inroads across Europe. Governments and businesses are taking multiple initiatives to implement and utilize the potential of artificial intelligence.
- Countries like Germany, the U.K., and many others have already developed national strategies for AI, and few other countries are taking concrete steps to deploy AI.
- Spain launched AI regulatory sandbox in June 2022
- Portugal has launched an AI-based i4.0 program to improve the technology environment in the country.
Sustainability Initiatives Attracting Data Center Operators
- European Union is continuously working towards making energy consumption completely green with new laws and regulations.
- Countries like U.K., France, and others have already signed Paris Agreement; therefore, it is binding on them to eliminate fossil fuel as an energy source and replace existing power capacity with renewable energy.
- The Climate Neutral Data Center Pact has also prompted operators to move towards 100% renewable energy by 2030.
- Governments across Europe are moving towards renewable energy and reducing dependence on fossil fuel-based energy sources.
- The U.K. government is moving towards 100% renewable energy by 2035.
- Germany wants to have net-zero carbon emissions by 2060.
SEGMENTATION INSIGHTS
Electrical Infrastructure
- Lithium-ion UPS systems, fuel cells, and natural gas generators will be in the center as operators move towards more efficient electrical infrastructure with sustainable intentions.
- AWS will use HVO across all of its European data centers. It has already replaced diesel with HVO in Ireland facility.
- Microsoft has partnered with Eaton, which will outfit all of Microsoft's data centers with grid-interactive UPS.
- Hyperscale data center facilities increasingly use efficient electric infrastructure like medium voltage switchgear and other equipment.
Mechanical Infrastructure
- Most operators have deployed free cooling and zero-water cooling, leveraging the cold temperature of the region. Colt Data Centre Services is using free cooling most of the year in the Paris South West data center; also, the same will be used in the announced expansion of this facility.
- Liquid cooling is being promoted across the data centers in the Europe hyperscale data center market. Due to the increasing workload of AI and HPC across Europe, free cooling and zero-water cooling will be less efficient than liquid cooling.
General Construction
- Increasing investment in hyperscale facilities will increase investment in engineering, design, and installation services the most, as operators are looking towards sustainable design in development.
- District heating is prevalent in Europe, where data center firms transfer heat generated from facilities to nearby offices/residential places/swimming pools, and others. Nordic is leading in terms of developing district heating with data center firms. Western Europe is also having increased investment in district heating technology.
KEY QUESTIONS ANSWERED:
- How big is the Europe hyperscale data center market?
- What is the growth rate of the Europe hyperscale data center market?
- What is the estimated market size in terms of area in the Europe hyperscale data center market by 2028?
- What are the key trends in the Europe hyperscale data center market?
- How many MW of power capacity is expected to reach the Europe hyperscale data center market by 2028?
MARKET DYNAMICS
Market Opportunities Trends
- Adoption of Artificial Intelligence
- Sustainability Initiatives Attracting Data Center Operators
- Development of District Heating Concept
- Innovative Construction Techniques of Data Centers
Market Growth Enablers
- Cloud-Based Service Adoption
- Shift from On-Premises to Cloud Colocation
- Advent of IoT Big Data Technologies
- Government Support for Data Center Development
- Growth in Submarine Inland Connectivity
- Adoption of Ocp Hyperscale Infrastructure
Market Restraints
- Supply Chain Disruptions
- Increased Carbon Emissions from Data Centers
- Lack of Skilled Workforce
- Security Challenges
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 439 |
| Forecast Period | 2022 2028 |
| Estimated Market Value (USD) in 2022 | $28.42 Billion |
| Forecasted Market Value (USD) by 2028 | $39.69 Billion |
| Compound Annual Growth Rate | 5.7% |
| Regions Covered | Europe |
Segmentation by Geography
- Western Europe
- The U.K.
- Germany
- France
- Netherlands
- Ireland
- Italy
- Spain
- Other Western European Countries
- Nordics
- Denmark
- Sweden
- Norway
- Finland
- Central Eastern European Countries
- Poland
- Other Central Eastern European Countries
KEY MARKET PARTICIPANTS
Key Data Center IT Infrastructure Providers
- Arista Networks
- ATOS
- Broadcom
- Cisco Systems
- Dell Technologies
- Extreme Networks
- Fujitsu
- Hitachi Vantara
- Hewlett Packard Enterprise (HPE)
- Huawei Technologies
- IBM
- INSPUR
- Juniper Networks
- Lenovo
- MiTAC Holdings
- NEC Corporation
- NetApp
- Pure Storage
- Quanta Cloud Technology (Quanta Computer)
- Super Micro Computer
- Wistron Corporation
Key Data Center Support Infrastructure Providers
- 3M
- ABB
- Airedale International Air Conditioning
- Aermec
- Alfa Laval
- Aksa Power Generation
- Carrier
- Caterpillar
- Condair
- Climaveneta
- Cummins
- D'HONDT THERMAL SOLUTIONS
- Daikin Applied
- Delta Electronics
- Eaton
- ebm-papst
- EMICON INNOVATION AND COMFORT
- Enrogen
- Flaktgroup
- Grundfos
- Guntner
- Gesab
- HiRef
- HITEC Power Protection
- Honeywell International
- Johnson Controls
- Kohler-SDMO
- KyotoCooling
- Legrand
- Mitsubishi Electric
- Munters
- NetNordic
- Nlyte Software (Carrier Global Corporation)
- Perkins Engines
- Piller Power Systems
- Reillo Elettronica (Riello UPS)
- Rittal
- Rolls-Royce
- Schneider Electric
- Siemens
- Socomec
- STULZ
- Trane (Ingersoll Rand)
- Vertiv
Prominent Construction Contractors
- AECOM
- AODC
- AEON Engineering
- ARC:MC
- Ariatta
- ARSMAGNA
- Artelia
- Arup
- Aurora Group
- Atkins
- Basler Hofmann
- BENTHEM CROUWEL ARCHITECTS
- Bouygues Construction
- Callaghan Engineering
- CAP INGELEC
- Coromatic (E.ON)
- Deerns
- Designer Group
- Dipl.-Ing. H. C. Hollige
- Dornan
- DPR Construction
- Etop
- EYP MCF
- Ferrovial
- Fluor Corporation
- Free Technologies Engineering
- Future-tech
- Granlund Group
- GreenMDC
- Gottlieb Paludan Architects
- Haka Moscow
- ICT Facilities
- IDOM
- IMOS
- ISG
- JCA Engineering
- JERLAURE
- Kirby Group Engineering
- Linesight
- M+W Group
- Mace
- Mercury
- Metnor Construction
- MT Hojgaard
- Nicholas Webb Architects (NWA)
- Norma Engineering
- Oakmont Construction
- PM Group
- Power Quality Control (PQC)
- Quark
- Ramboll Group
- RED
- Royal HaskoningDHV
- STARCHING
- STO Building Group
- STRABAG
- STS Group
- Sweco
- TPF Ingenierie
- TTSP
- Turner Townsend
- Warbud
- Winthrop Engineering and Contracting
- YIT
- ZAUNERGROUP
Prominent Data Center Investors
- Amazon Web Services (AWS)
- Apple
- Aruba
- atNorth (Partners Group)
- Colt Data Centre Services (COLT DCS)
- CyrusOne
- DATA4
- DigiPlex (IPI Partners)
- Digital Realty
- Echelon Data Centres
- EcoDataCenter
- Equinix
- Facebook (Meta)
- Global Switch
- Green Mountain
- Iron Mountain (IO)
- Ixcellerate
- Kevlinx
- Microsoft
- NTT Global Data Centers
- Orange Business Services
- Rostelecom Data Centers (RTK-DC)
- T5 Data Centers
- Vantage Data Centers
- Verne Global
- Virtus Data Centres (ST Telemedia Global Data Centres)
- Yondr
- Global Technical Realty
- Stratus DC Management
For more information about this report visit https://www.researchandmarkets.com/r/km12h0
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