Amsterdam Data Center Market Size

Amsterdam Data Center Market Analysis

The Amsterdam data center market stood at 995.34 MW in 2022, and it is anticipated to record a CAGR of 3.14 % during the forecast period to reach a volume of 1271.15 MW by the next six years. The main factors anticipated to drive the market expansion are the increasing demand for energy-efficient data centers, considerable investment by colocation service and managed service providers, and expanding hyperscale data center building. Additionally, the development of big data, cloud computing, and the Internet of Things (IoT) has made it possible for businesses to invest in new data centers to preserve business continuity. Industrial development is LAO expected to prosper due to the rising need for security, operational efficiency, improved mobility, and bandwidth. Software-based data centers boost industry growth by providing a higher level of automation.

• The massive amount of data that 5G networks must process, store, and distribute may burden data centers, raising the demand for computing power and supporting infrastructures like storage, communication, and edge computing. The rise in 5G is expected to drive the demand for data centers in the region. For instance, according to Ericsson, by 2026, the Netherlands' 3.5GHz (5G) roll-out is anticipated to be complete. By 2030, 60% of the Dutch population will be covered by the 3.5 GHz 5G network, up from 33% in 2023.
• To cater to a wide range of customer needs, players are expanding their data centers in the region. For instance, recently, Interxion has completed the expansion of its Amsterdam-based AMS17 data center. The third and final phase of Digital Realty's AMS17 facility, commonly known as the Amsterdam Data Tower, has been finished, and four additional floors are now available to clients. The extension adds a total of 2,048 other usable square meters (22,000 sq. ft) to the facility, as well as 2.4 MW of additional power. Digital Realty formally launched the tower, which is located within the Amsterdam Science Park, in 2016. Customers can now access 5,500 square meters (59,200 sq. ft) and 7 MW capacity at the data center.
• Similarly, Deutsche Telekom inaugurated two new data centers in Amsterdam, the Netherlands. The German telecommunications company announced the opening of twin data centers in the city with a total area of 21,000 square meters (226,000 sq. ft) to support its Open Telekom Cloud offering. According to the business, the two new facilities are powered entirely by renewable energy and have Power Usage Effectiveness (PUE) ratings of 1.32 and 1.25. The two new locations supplement the company's current Biereand Magdeburg, Germany operations.
• According to network operators, the electricity infrastructure cannot support a limitless number of connections from these large-scale power users. Data center construction is restricted in several nations due to the lack of energy grid capacity. This puts the desired expansion of current data centers in jeopardy. The issue is most prominent in the Amsterdam metropolitan area.
• Coronavirus had a minimal influence over the Amsterdam data center market as it is an essential infrastructure. Data centers remained open during the pandemic-related shutdowns as the government deemed the operation and maintenance of data centers as a critical service. However, pricing came under pressure owing to macroeconomic slowdowns due to extended shutdowns and prolonged economic slowdowns in the country caused by the pandemic. The demand for data centers has seen a positive rise, augmented by technology demand growth due to shutdowns. Companies upgrading IT infrastructures to support remote working amid shutdowns may shift workloads to the public and private cloud.