Europe Data Center Colocation Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Europe Data Center Colocation Market is segmented by Type ( Retail colocation​, Wholesale colocation​), by End-User Vertical​ (BFSI, Telecom and IT​, Healthcare​, Government​, Media and Entertainment), and Country.

Market Snapshot

Europe Data Center Colocation
Study Period: 2019-2026
Base Year: 2020
CAGR: 8.2 %

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Market Overview

The Europe data center colocation market is expected to register a CAGR of 8.2% during the forecast period (2021 - 2026). While the COVID-19 pandemic has had a devastating impact on multiple industries, the data center industry shows signs of long-term growth and stability. Companies are stating that they are positive regarding business opportunities within the industry. The region has been significantly affected, which has disrupted data center service providers in the region. Moreover, travel ban and nationwide being enforced in the country, many organization has adapted to work from home that has increased the data traffic significantly which has put tremendous pressure on the data center, coping with the existing capacities to prevent the downtime.

  • Data Center colocation is helping businesses to strengthen their operation in their specific industries by taking advantage of the high-quality managed data center services. This has enabled companies to focus on their revenue generation by streamlining their workflows and reducing operational IT expenses.
  • The regional market is also driven by the significant demand for colocation services by hyperscale data center consumers, including large internet businesses and public cloud service providers. Besides building massive data center facilities in remote areas, major cloud service providers such as Facebook, Microsoft, and Google have been leasing tons of capacity from the colocation companies in densely populated areas across the European region.
  • Furthermore, having one of the lowest corporation tax rates in the European Union, Dublin is well -connected to the United States and other European regions. Ireland has been a bridge between Europe and America. Dublin and the data center industry have shown excellent growth prospects. The data volumes continue to rise, driven not just by the growth of smart technologies, including AI, Big Data, and blockchain, but also by developments in media and social networks featuring videos and files much bigger than written text.
  • The majority of data centers lack the necessary capabilities to obtain information on how assets in a network are connected and where they are situated. As a result, if there is a downtime, data center operators spend a significant amount of time identifying and resolving issues. Long recovery times might be detrimental to data center growth in the long run.

Scope of the report

A data center is a facility or dedicated space that houses computer systems and associated components to store, process, and disseminate data and applications. As IT operations are crucial for business activities and continuity, they also include infrastructure for power backups, data communications connections, environmental controls, and various security devices. Colocation enables companies to rent specific space to house their servers along with the servers of other companies in a common physical location. Colocation offers the flexibility to upscale or downscale a company’s technology as per its requirements. Another major advantage of colocation is cost savings. The Europe Data Center Colocation Market is segmented by Type ( Retail colocation​, Wholesale colocation​), by End-User Vertical​ (BFSI, Telecom and IT​, Healthcare​, Government​, Media and Entertainment), and Country.

By Type
Retail Colocation
Wholesale Colocation
By End-User Vertical
Telecom and IT
Media and Entertainment
Other End-User
By Country
United Kingdom
Rest of Europe

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Key Market Trends

Growing Adoption of Cloud Services

  • The increasing prevalence of big data and IoT technologies are also anticipated to increase the investments in the data center facilities as enterprises in the region are observing higher data generation across multiple industries, including BFSI, IT and Telecom, Healthcare, and Government and Defense, among others. The growing adoption of cloud computing (which is further escalated owing to the emergence of the COVID-19 pandemic), increasing penetration of foreign cloud vendors, governmental regulations for local data security, and the increasing investments by domestic players are some of the major factors that are driving the demand for data centers in the region.
  • According to the figures from Eurostat, the region’s statistics agency, there has been a significant percentage growth in the businesses migrating to the cloud. The report states that 26% of EU enterprises use cloud computing mostly for e-mail and the storage of files. Finland led the most usage of the services with 65.3%, followed by Sweden 57.2%, Denmark 55.6%, and Netherland 48.2%. Whereas the United Kingdom and Germany usage was 41.9% and 22.4%, respectively. More such adoption of cloud computing is expected to drive market growth in the region.
  • Being perceived as a Tier 2 data center market, the Nordics region has witnessed several investments from the cloud and hyperscale providers, such as Facebook, Google, and Apple, all choosing to locate in the region. For example, Facebook is expanding in Sweden, whilst AWS previously announced 3 builds in the country. In Norway, Microsoft has invested in multiple data center locations, while Google expands its operations in Finland. Also, it is not just the hyperscale players providing FDI; enterprises and colocation providers are also increasingly investing in the Nordics region.
  • Furthermore, the region has witnessed new data centers initiatives, significantly contributing to the regional market growth. For instance, in July 2020, Interxion, a prominent European provider of carrier and cloud-neutral colocation data center solutions and a digital reality company, announced its first phase of MRS 3, its third data center in Marseille. The Marseille campus sits at the core of the global subsea cable industry, with 14 cables currently landing in Marseille and five to 10 additional lines expected to land within five years.
  • The rapidly increasing adoption of various cloud services has been a crucial driver for the market’s growth. Over the past five years, these cloud services have been taking an increasing share of data-center usage.
Europe Cloud Impo Graph.png

United Kingdom Holds Significant Market Share

  • The adoption of Edge computing, 5G and IIoT, is predicted to increase the demand for data exponentially. Furthermore, the increase in data traffic is expected to impact the market's growth positively. According to the Equinix report, London is anticipated to be the most important European data market. Furthermore, an increasing number of European data compliance rules are acting as a driver. The industry is expected to increase at 48 % per year, accounting for 23% of worldwide interconnection bandwidth.
  • The connectivity of the cloud service providers is a significant factor when selecting a colocation provider. New hyperscale colocation entrants, such as Echelon Data Center and K2 Data Center, also contribute to market growth during the forecast period.
  • Furthermore, the industry-wide adoption of new technologies such as Big data, IoT, and innovative city initiatives/projects such as Manchester's Triangulum project and Hull's Smart City OS, among others, are driving data center demand.
  • The customers in this region benefit from various functionalities, such as a 100% uptime SLA and thereby focusing on their core business operations rather than managing a data center. The provider supplies and manages hardware infrastructure with the cloud services, including servers, storage, and network elements.
  • With over 5.5 million businesses relying on cloud services, combined with non-business IT cloud requirements, the UK may consume 7,446 kWh of electricity per year, much exceeding the overall renewable generation limit.

Competitive Landscape

The Europe Data Center Colocation Market is moderately fragmented with few dominant and new firms in the market. The companies keeping on innovating and entering into strategic partnerships in order to retain their market share.

  • March 2021 - CyrusOne Inc., one of the leading global data center real estate investment trusts (REIT), announced its second net-positive water data center in Carrollton, Texas. The Carrollton data center is the largest CyrusOne data center in the United States, and it is located in a World Resources Institute-designated high-water stress region.
  • April 2021 - Equinix, Inc., one of the leading digital infrastructure providers, has announced the completion of AM7 phase 3, an expansion of Equinix's Amsterdam-based AM7 International Business Exchange. The 63 million-dollar investment will increase the capacity for local and international clients to be further digitized. Equinix has invested more than USD1 billion in its data centers in Amsterdam to date.
  • April 2021 -Cyxtera, one of the prominent players in data center colocation and interconnection services, has launched the Cyxtera Portal, allowing customers to monitor, manage, and control their digital infrastructure from a single, dedicated platform. Cyxtera's intelligently automated platform gives customers real-time access into their complete data center environment, as well as all the tools they need to manage dispersed infrastructure, allowing them to lay the groundwork for their digital business goals.

Recent Developments

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness- Porter Five Forces

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of COVID-19 Impact on the Industry

    5. 4.5 Technology Snapshot


    1. 5.1 Market Drivers

      1. 5.1.1 Growing Adoption of Cloud Services

      2. 5.1.2 Increased Emphasis on Compliance With Data Regulations and Cost-Effective Nature of Colocation Facilities to Drive Adoption Among SME

    2. 5.2 Market Restraints

      1. 5.2.1 Dependence on Regulatory Landscape

      2. 5.2.2 Stringent Security Requirements Pose a Challenge for Operators


    1. 6.1 By Type

      1. 6.1.1 Retail Colocation

      2. 6.1.2 Wholesale Colocation

    2. 6.2 By End-User Vertical

      1. 6.2.1 BFSI

      2. 6.2.2 Telecom and IT

      3. 6.2.3 Healthcare

      4. 6.2.4 Government

      5. 6.2.5 Media and Entertainment

      6. 6.2.6 Other End-User

    3. 6.3 By Country

      1. 6.3.1 United Kingdom

      2. 6.3.2 Germany

      3. 6.3.3 France

      4. 6.3.4 Ireland

      5. 6.3.5 Spain

      6. 6.3.6 Rest of Europe


    1. 7.1 Company Profiles*

      1. 7.1.1 Cyxtera Technologies, Inc.

      2. 7.1.2 CyrusOne, Inc.

      3. 7.1.3 Digiplex

      4. 7.1.4 Equinix, Inc.

      5. 7.1.5 Etix Everywhere

      6. 7.1.6 Global Switch Limited

      7. 7.1.7 Green Mountain

      8. 7.1.8 Interxion (Digital Reality)

      9. 7.1.9 NTT Limited

      10. 7.1.10 Echelon Data Centers

      11. 7.1.11 DATA4 Group



**Subject to Availability

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Frequently Asked Questions

The Europe Data Center Colocation Market market is studied from 2019 - 2026.

The Europe Data Center Colocation Market is growing at a CAGR of 8.2% over the next 5 years.

Etix Everywhere, Equinix, Inc., Digiplex, CyrusOne, Inc., Cyxtera Technologies, Inc. are the major companies operating in Europe Data Center Colocation Market.

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