Western Europe Data Center Market - Industry Outlook & Forecast 2022-2027

Western Europe Data Center Market - Industry Outlook & Forecast 2022-2027

In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Western Europe Data Center Market Report

Western Europe data center market witnessed investments of USD 35.06 billion in 2021 and will witness investments of USD 44.77 billion by 2027, growing at a CAGR of 4.16% during 2022-2027

The data center market in Western Europe witnessed an increase in investment in countries such as Italy, Spain, Portugal, Belgium, and Switzerland. Multiple projects are being carried out by colocation, cloud, telecommunication, and internet service providers.

The following factors are likely to contribute to the growth of the Western Europe data center market –Growing Artificial Intelligence Adoption in the RegionGrowing District Heating Concept in the RegionGrowth in Sustainable InitiativesInnovative Data Center TechnologiesAdvance IT InfrastructureIncreasing Data Center Investments5G Deployments to Fuel Edge Data CentersGrowth in Cloud Service Adoption in the RegionCovid-19 on Data Center MarketIncreasing Adoption of Big Data & IoTGovernment Support for Data Center MarketAdoption of OCP and Hyperscale InfrastructureGrowing Submarine and Inland ConnectivityKEY HIGHLIGHTSData center investments in Western Europe grew by around 58% in 2021, compared to 2021, dominated by several hyperscale investments and development of data centers in emerging markets such as Spain, which are likely to witness over USD 3 billion in data center investments during 2022-2027.The top three data center constitute around 50% of data center investments in 2021. Colocation investments contribute to around 65% of the total investments made in 2021 across Western EuropeIn 2021, the Western Europe data center market witnessed over 100 new and expansion data center projects, with Germany leading the market accounting for over 22% of the investment followed by France (19%), the UK (14%), and Ireland (12%).WESTERN EUROPE DATA CENTER MARKET SEGMENTS

The Western Europe data center market has the following segmentation:InfrastructureIT InfrastructureElectrical InfrastructureMechanical InfrastructureCooling SystemsCooling TechniqueGeneral ConstructionTier StandardFacility TypeGeographySEGMENTATION ANALYSISIT Infrastructure: Server procurement will bring in USD 90 billion cumulative revenue opportunity for vendors operating in Western Europe during 2022-2027. In servers, AI-based computing infrastructure is gaining increased traction in the market. NVMe flash storage dominates with its growth rate and 25/100 GbE switch ports among network infrastructures. Several innovations are also available within servers from different operators. For instance, Facebook in May 2020 announced the next generation Sonora Pass server specification at the Open Compute Project (OCP). Servers with AI and ML built into them are getting developed and offer features such as analytics for data, ease in developing AI-enabled apps, and flexible data deployment to grow the cloud operations in the market significantly.UPS Systems: $8+ billion will be spent on procuring UPS Systems in data centers during 2022-2027. Due to the failure of UPS and to overcome the challenges of VRLA batteries, vendors introduced lithium-ion UPS solutions and Nickel Zinc and Prussian Blue Sodium-ion batteries, most data centers operating in European regions are adopting N+N redundant infrastructure, while the majority of data centers are designing facilities with space for installing up to 2N+2 redundant UPS systems to cope with diverse feed designs of the facility, thereby, the growth of the lithium-ion UPS batteries in the data center market.Market Segmentation by InfrastructureIT InfrastructureElectrical InfrastructureMechanical InfrastructureGeneral ConstructionMarket Segmentation by IT infrastructureServerStorageNetworkMarket Segmentation by Electrical InfrastructureUPS SystemsGeneratorsTransfer Switches & SwitchgearPower Distribution UnitsOther Electrical InfrastructureMarket Segmentation by Mechanical InfrastructureCooling SystemsRacksOther Mechanical InfrastructureMarket Segmentation by Cooling SystemsCRAC & CRAH UnitsChiller UnitsCooling Towers, Condensers, and Dry CoolersEconomizers & Evaporative CoolersOther Cooling UnitsMarket Segmentation by Cooling TechniqueAir-Based Cooling TechniqueLiquid-Based Cooling TechniqueMarket Segmentation by General ConstructionCore & Shell DevelopmentInstallation & Commissioning ServicesEngineering & Building DesignPhysical SecurityFire Detection & SuppressionDCIM/BMSMarket Segmentation by Facility TypeHyperscale Data CentersColocation Data CentersEnterprise Data CentersMarket Segmentation by Tier StandardTier I & IITier IIITier IVVENDOR ANALYSISHewlett Packard Enterprise is a major vendor in the server market. Server demand has grown over the last year through the higher infrastructure deployment for big data analytics workloads. The need for converged and hyper-converged solutions also experienced substantial growth in the market.Innovations in system performance for all workloads and delivery of high-density systems with high-capacity SSDs play a vital role in gaining market share in the storage market. Dell Technologies is the leading vendor in the market.Cisco Systems dominated the market aided by the strong demand for its Application Centric Infrastructure (ACI) product portfolio. Cisco’s data center switching revenue increased through higher sales of the Cisco Nexus series product. Other major vendors operating include Arista Networks, Broadcom in the data center market.Key IT Infrastructure ProvidersArista NetworksAtosBroadcomCisco SystemsDell TechnologiesExtreme NetworksFujitsuHitachi VantaraHewlett Packard Enterprise (HPE)Huawei TechnologiesIBMInspurJuniper NetworksLenovoMiTAC HoldingsNEC CorporationNetAppPure StorageQuanta Computer (Quanta Cloud Technology)Super Micro ComputerWistron (Wiwynn)Key Support Infrastructure Providers3MABBAiredale International Air ConditioningAlfa LavalCarrierCaterpillarCondairCumminsDaikin AppliedDelta ElectronicsEatonebm-papstEMICON INNOVATION AND COMFORTEnrogenFlaktGroupGESABHiRefHITEC Power ProtectionJohnson ControlsKOHLER-SDMOKyotoCoolingLegrandMitsubishi ElectricMuntersNlyte Software (Carrier Global Corporation)Perkins EnginesPiller Power SystemsRiello Elettronica ( Riello UPS)RittalRolls-RoyceSchneider ElectricSiemensSocomecSTULZTrane (Ingersoll Rand)VertivKey Construction ContractorsAECOMAEON EngineeringARC:MCAriattaARSMAGNAArteliaArupAtkinsBasler & HofmannBENTHEM CROUWEL ARCHITECTSBouygues ConstructionCallaghan EngineeringCap IngelecCollenDeernsDPR ConstructionEYP MCFFerrovialFuture-techICT FacilitiesIDOMISGJCA EngineeringJERLAUREKirby Group EngineeringLinesightM+W Group (EXYTE)MercuryMetnor ConstructionNicholas Webb Archiects (NWA)NORMA EngineeringOakmont ConstructionPM Group(PQC) Power Quality ControlQuarkREDRoyal HaskoningDHVSkanskaSPIE UKStarchingSTO Building GroupSTS GroupTPFTTSPTurner & TownsendWinthrop Engineering and ContractingKey Data Center InvestorsAtlasEdgeArubaChina Mobile InternationalColt Data Centre Services (COLT DCS)CyrusOneDATA4Digital RealtyEchelon Data CentresEdgeConneX (EQT Infrastructure)EquinixEuclyde Data CentersFacebookGlobal SwitchGoogleIron MountainKDDILiebert GlobalMicrosoftNautilus Data TechnologiesNDC-GARBE Data Centers EuropeNTT Global Data CentersOrange Business ServicesProximity Data CentresPure Data CentresT5 Data CentersTelecom Italia SparkleVantage Data CentersVirtus Data centers (ST Telemedia Global Data Centres)YondrGEOGRAPHICAL ANALYSISUK: The major locations for data centers construction in the UK include London, Manchester, and Slough. Among these major locations in London, which witnessed a data center area addition of around 400 thousand square feet to fuel the data center market growth.Germany: Over 1,000 MW of data center capacity will add during 2022-2027 in the German market. The data center market in Germany witnessed a major number of data center projects among all countries of the region, including investments from some of the global data center operators such as CyrusOne, Digital Realty, Equinix, Vantage Data Centers, and NTT Global Data Centers. The market witnessed investments also from cloud service providers.France: The market will witness data center investments worth over $7 billion during 2022-2027. The major locations for data center developments in the country include Paris, Marseille, Strasbourg, Bordeaux, and Mougins, out of which Paris witnessed a majority of data center space addition. In November 2021, the French Government announced around $2 billion to support research and development projects for cloud computing in the country. In October 2021, Interxion, a subsidiary of Digital Realty announced its plans of developing a data center campus in Paris with a power capacity of around 130 MW.Market Segmentation by GeographyIrelandGermanyUKNetherlandsFranceSwitzerlandItalySpainBelgiumPortugalLuxembourgOther Western European CountriesKEY QUESTIONS ANSWERED:

1. What is the size of the Western Europe data center market?

2. Who are the key investors in the Western Europe data center industry?

3. What are the factors driving the data center market growth in Western Europe?

4. What are some of the factors considered for Data center site selection criteria in terms of area development and data center operation?