Europe Hyperscale Data Center Market Industry Outlook & Forecast 2024-2029

October 16, 2024

DUBLIN–(BUSINESS WIRE)–The “Europe Hyperscale Data Center Market – Industry Outlook & Forecast 2024-2029” report has been added to ResearchAndMarkets.com’s offering.

The Europe Hyperscale Data Center Market was valued at USD 31.39 Billion in 2023, and is expected to reach USD 45.65 Billion by 2029, rising at a CAGR of 6.44%.

KEY HIGHLIGHTS

The Climate Neutral Data Center Pact is instrumental in making European data centers more sustainable. By 2030, all signatories to this pact commit to powering their facilities entirely with renewable energy.
Investors in the European hyperscale data center market are exploring new locations, such as Spain, Portugal, Greece, and other countries with abundant renewable energy resources and reasonable land prices.
Leading tech companies like Microsoft, Meta, and Google are at the forefront of developing environmentally sustainable data centers. They employ initiatives such as using sustainable materials in construction, implementing green facades, and exploring alternative energy sources such as hydrogenated vegetable oil (HVO). Colocation data center developers also follow suit.
Austria, Romania, and Poland are significant destinations for data center development in Central and Eastern Europe. Operators in this region prefer natural gas as an energy source.
Data center operators in Central & Eastern Europe tend to use natural gas as an energy source.

KEY TRENDS THAT IMPACT EUROPE HYPERSCALE DATA CENTER MARKET

Procurement of AI

The use of AI is increasingly prevalent across Europe. Governments and businesses actively take steps to harness AI’s capabilities through various initiatives.
Several countries, including Germany and the U.K., have already formulated national strategies for AI. Additionally, other countries have begun implementing tangible measures to integrate AI into their operations. In June 2022, Spain introduced an AI regulatory sandbox to test and regulate AI applications. Furthermore, Portugal’s i4.0 program, based on AI technology, is designed to enhance the country’s technological landscape.

Attractive Sustainability Initiatives Attracting the Data Center Operators

The European Union (EU) consistently strives to transition energy use entirely to green sources by implementing new laws and regulations.
The UK and France, among others, are committed to the Paris Agreement. This commitment obliges them to phase out fossil fuels as energy sources and substitute existing power capacity with renewable alternatives.
The Climate Neutral Data Center Pact spurred data center operators to aim for 100% renewable energy usage by 2030.
Governments throughout Europe shift to renewable energy sources, diminishing their reliance on fossil fuel-based energy. The UK government aims to transition entirely to renewable energy sources by 2035. Furthermore, Germany has set a target to reach net-zero carbon emissions by 2060.

GEOGRAPHICAL ANALYSIS

The Nordics and Western Europe remain top choices for large-scale investments in hyperscale data centers due to their access to free cooling and air-based cooling systems.
Frankfurt, London, Amsterdam, Paris, and Dublin (known as the FLAPD market) are central hubs in Western Europe. However, Spain and Portugal are emerging as new destinations for building hyperscale data centers in the Europe hyperscale data center market.
Ongoing investments in renewable energy and factors like available land and labor heavily influence decisions on where to build hyperscale facilities.
Spain, Portugal, and Greece are attractive to investors in the Europe hyperscale data center market due to their abundant renewable energy resources and relatively lower land costs than the crowded FLAPD and other markets.
The Western European and Nordic regions will continue to be focal points for data center development, with more companies choosing to establish their presence there.
Major investments in hyperscale data centers are also seen in Poland, Austria, and Romania in Central and Eastern Europe. These countries push for renewable energy investments to support the power needs of data center operations.
Real estate and private equity firms are growing interested in entering the data center market. They either establish dedicated data center business units or form joint ventures with existing data center operators to invest in large-scale projects.

KEY MARKET PARTICIPANTS

Microsoft, Google, and Meta are major investors in Europe hyperscale data center market in terms of cloud players.
Equinix, Digital Realty, Vantage Data Centers, CyrusOne, and NTT are major colocation data center operators developing hyperscale facilities across Europe.
Eaton, Vertiv, Schneider Electric, and others invest in lithium-ion-based UPS systems. These companies provide electrical infrastructure for hyperscale development across Europe.
Eaton, Vertiv, Schneider Electric, and others supply lithium-ion-based UPS systems, smart grid solutions, and new switchgear compatible with different power sources.
Ferrovial, Arup, RED, ISG, M+W Group, and others will see an increased demand for the development of hyperscale data center facilities.

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

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 Corporation
Munters
NetNordic
Nlyte Software
Perkins Engines
Piller Power Systems
Reillo Elettronica
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
EYP MCF
Ferrovial
Fluor Corporation
Future-tech
Granlund Group
GreenMDC
Gottlieb Paludan Architects
Haka Moscow
ICT Facilities
IDOM
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
PQC
Quark
Ramboll Group
RED
Royal HaskoningDHV
STO Building Group
STRABAG
STS Group
Sweco
TPF Ingenierie
TTSP
Turner & Townsend
Warbud
Winthrop Engineering and Contracting
YIT
Zauner Group

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
Google
Green Mountain
Iron Mountain (IO)
Ixcellerate
Kevlinx
Microsoft
NTT Global Data Centers
Orange Business Services
Rostelecom Data Centers
T5 Data Centers
Vantage Data Centers
Verne Global
Virtus Data Centres
Yondr
Global Technical Realty
Stratus DC Management

KEY QUESTIONS ANSWERED:

How many MW of power capacity is expected to reach the Europe hyperscale data center market by 2029?
What is the growth rate of the Europe hyperscale data center market?
How big is the Europe hyperscale data center market?
What is the estimated market size in terms of area in the Europe hyperscale data center market by 2029?
What are the key trends in the Europe hyperscale data center market?

Key Attributes:

Report Attribute	Details
No. of Pages	438
Forecast Period	2023 – 2029
Estimated Market Value (USD) in 2023	$31.39 Billion
Forecasted Market Value (USD) by 2029	$45.65 Billion
Compound Annual Growth Rate	6.4%
Regions Covered	Europe

Key Topics Covered:

1. Report Coverage

2. Market at a Glance

3. Introduction

3.1. Overview

3.1.1. Key Characteristics & Advantages of Hyperscale Data Centers

3.1.2. Factors That Influence Hyperscale Data Center Projects in Europe

3.1.3. Growth of Hyperscale Data Center in Europe

3.1.4. Tier Certification Levels

4. Premium Insights

4.1. Key Highlights

4.2. Key Trends That Impact Europe Hyperscale Data Center Market

4.3. Geographical Analysis

4.4. Segmental Analysis

4.5. Key Market Participants

5. Market Opportunities & Trends

5.1. Rapid Growth & Use of AI

5.2. Government Support for Green Data Center Initiatives

5.3. Rise in Application of District Heating

5.4. Procurement of Modern Cooling Technologies

6. Market Growth Enablers

6.1. Investments in Cloud Infrastructure

6.2. Data Localization Laws

6.3. Enhanced Connectivity Through Submarine Cables

6.4. Digital Transformation & Tax Incentives

7. Market Restraints

7.1. Supply Chain Issues

7.2. Carbon Emissions

7.3. Dearth of Skilled Workforce

7.4. Security Challenges

8. Market Landscape

8.1. Market Overview

8.2. Investment: Market Size & Forecast

8.3. Area: Market Size & Forecast

8.4. Power Capacity: Market Size & Forecast

9. Infrastructure

9.1. Market Snapshot

9.2. Key Highlights

9.3. IT Infrastructure

9.4. Electrical Infrastructure

9.5. Mechanical Infrastructure

9.6. General Construction

10. IT Infrastructure

10.1. Market Snapshot

10.2. Server Infrastructure

10.3. Storage Infrastructure

10.4. Network Infrastructure

11. Electrical Infrastructure

11.1. Market Snapshot

11.2. UPS Systems

11.3. Generators

11.4. Transfer Switches & Switchgear

11.5. PDUs

11.6. Other Electrical Infrastructure

12. Mechanical Infrastructure

12.1. Market Snapshot

12.2. Cooling Systems

12.3. Racks

12.4. Other Mechanical Infrastructure

13. Cooling System

13.1. Market Snapshot

13.2. CRAC & CRAH Units

13.3. Chiller Units

13.4. Cooling Towers, Condensers & Dry Coolers

13.5. Economizers & Evaporative Coolers

13.6. Other Cooling Units

14. Cooling Technique

14.1. Market Snapshot

14.2. Air-based Cooling

14.3. Liquid-based Cooling

15. General Construction

15.1. Market Snapshot

15.2. Core & Shell Development

15.3. Installation & Commissioning Services

15.4. Engineering & Building Design

15.5. Fire Detection & Suppression Systems

15.6. Physical Security

15.7. DCIM/BMS Solutions

16. Tier Standard

16.1. Market Snapshot

16.2. Tier I & II

16.3. Tier III

16.4. Tier IV

17. Western Europe

18. Nordics

19. Central & Eastern Europe

20. Competitive Landscape

20.1. IT Infrastructure

20.2. Electrical Infrastructure

20.3. Mechanical Infrastructure

20.4. General Construction

20.5. Data Center Investors

21. Key Data Center IT Infrastructure Providers

22. Key Data Center Support Infrastructure Providers

23. Prominent Construction Contractors

24. Prominent Data Center Investors

For more information about this report visit https://www.researchandmarkets.com/r/yitm3o

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