Market Trends of Europe Data Center Cooling Industry
This section covers the major market trends shaping the Europe Data Center Cooling Market according to our research experts:
Retail Industry is Expected to Hold Significant Market Share
- In the retail industry, the increasing users in e-commerce and online spending is creating an enormous volume of Big Data, expected to propel the need for data storage, security, and reduced latency. It is thereby boosting the region's expenditure and the number of data centers. Rapid development in the retail sector and industry 4.0 trends are also responsible for the data center's rise, enhancing the cooling device's need.
- Due to the increasing number of online users, foreign retail companies regularly invest in European countries to expand their storage capacity, increasing internet traffic and the load on data centers. For instance, JD.com, a Chinese e-commerce giant, recently confirmed a strategic entry into the European retail sphere. Due to stringent regulations in the region, foreign companies investing in the area may store their data locally for smooth transitions regarding the data protection law. As a result, the usage of data center cooling systems is expected to increase, thereby boosting the market growth in the region over the forecast period.
- Notably, according to the E-commerce Foundation, the European B2C e-commerce turnover is expected to expand by approximately 13% to reach USD 621 billion due to the high internet penetration in the region. It may increase the Big Data volume, leading to more data centers and cooling systems in the area.
- Further, according to Eurostat, Italy and Poland witnessed tremendous growth in e-commerce users. It led to the generation of a vast amount of data, thereby strengthening storage requirements. As a result, the European data center cooling market is expected to expand over the forecast period.
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United Kingdom Accounts for the Largest Market Share
- Companies in the UK are rigorously investing in new data centers. It is expected to positively impact the market growth in the region over the forecast period. For instance, Interxion, a European colocation and networking company, commenced its third data center in London, expanding carriers and CDNs for consumers. This development is expected to propel the cooling system utilization, fostering the market growth.
- Moreover, H&M, a fashion retailer in the country, plans to integrate a cooling and heat recovery system in its new data center in Stockholm. The excess heat generated from the data center is reused by Fortum Värme, an energy company, by distributing it to customers (2,500 modern residential apartments at full load) throughout the city.
- The UK recorded the highest number of data centers across Europe. Industry players can target these countries to invest in their new technologies. Also, they can form partnerships with upcoming data center organizations to cater to their requirements at a competitive price, which may aid the growth of the European data center cooling market over the forecast period.
- Green and renewable solutions, such as green electricity, water reclamation, zero water cooling systems, recycling, and waste management, are being used to build the most sustainable data centers. Notably, growth in Big Data volume across European countries, including the United Kingdom, is expected to increase the need for low-latency and high-capacity data centers, thereby boosting cooling system utilization. According to Science Direct, data center energy use might account for 2.13% of worldwide electricity supply over the forecast period.
- Further, companies are regularly trying to reduce their operational cost across their verticals, increasing the AI technology used in data center cooling systems in the country. For instance, Siemens introduced AI-based thermal optimization, wherein the company utilizes Vigilant AI products to enhance cooling systems in data centers.
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