Europe Data Center Construction Market Size

Europe Data Center Construction Market Analysis

The European Data Center Construction Market is projected to register a CAGR of 5.3% over the next five years. The market studied has been increasing, with new entrants and data centers being increasingly constructed in the region. The necessity for space and utilities has also expanded to unprecedented levels, with the expansion of businesses driving the need for more data centers in the area.

• The FLAP-D (Frankfurt, London, Amsterdam, Paris, and Dublin) regions have become significantly mature and face limitations related to physical spaces and insufficient energy to power these data centers. Such issues have driven the colocation providers to find new feasible locations, including Oslo, Berlin, Zurich, Milan, Warsaw, and Madrid. These areas are considered potential regions for data center construction across the region.
• Another factor boosting the growth of data centers in the region is the development of smart cities. For instance, The government of Germany plans to develop smart cities nationwide through its Smart City Model Projects Program, with EUR 1250 billion in funding. Due to such factors, data consumption is expected to increase proportionally, leading to a growing IT load in the coming years, expected to depend on data centers.
• Moreover, the existing data center operators are constantly searching for practical solutions to upgrade the data center infrastructure to support the colder climate conditions across Europe. Many establishments strongly favor free cooling chillers that provide partial cooling using outside air. However, depending on the facility design and IT load, the investment in advanced cooling systems for data center projects is anticipated to grow.
• There are many European standards and regulations for data centers; it's easy to see that non-compliance with the stringent rules and regulations involves more than just a single, easily understood consequence but hundreds of ramifications. On a legal front, a data provider that fails to meet the standards and keep up with compliance may be punishable by law, which could involve shutdowns, fines, and much more.
• The impact of the pandemic surged in remote schools and work, making business calls on Zoom instead of the phone and utilizing an app for everything across the European region. The fast growth of online activity raised the demand for data center white space, particularly in recent years, as the COVID-19 pandemic made access to internet applications. With more people relying on the Internet for work, social networking, e-commerce, banking, and entertainment, the demand for almost limitless uptime and storage capacity grew. Thus, driving the need for more Data Centers.