Market Trends of Europe Data Center Power Industry
This section covers the major market trends shaping the Europe Data Center Power Market according to our research experts:
Rising Adoption of Mega Data Centers and Cloud Computing is Expected to Drive the Market
- The growing adoption of cloud computing services in European countries has led to increased IT infrastructure components. Many technology companies are launching their cloud services and helping many businesses in their digital transformation journey, thus driving the demand for the Europe data center power market over the forecast period.
- Further, the demand and adoption of cloud computing services are growing at a rapid pace, thus, indirectly benefitting the market's growth. For instance, according to the data from Eurostat, the use of cloud computing services in EU businesses increased from 36% in 2020 to 41% in 2021.
- Moreover, the rapid adoption of cloud services and rising penetration of connected devices are driving the data center market to new records, including consolidations and the emergence of new players. Such instances will positively impact the market's growth. For instance, in March last year, Carrier-neutral colocation provider Telehouse Europe opened its fifth colocation data center in London. Located in the Docklands, the new Telehouse South delivers 2 MW of power and space for up to 668 racks of IT equipment.
- Further, several data center infrastructure is located close to the most significant European internet exchange points, i.e., Frankfurt, London, Amsterdam, Paris, Zurich, Stockholm, and Madrid. Moreover, there has also been considerable data center investment growth in other regions of Europe, e.g., close to carbon-free energy resources or in areas with perfect climate conditions to run data centers.
- Moreover, due to the vast resources of renewable energy, low power prices, favorable climate conditions, and good infrastructure, Nordic countries have added to a surge of foreign investments in the region over the years. For instance, Lefdal Mine Datacenter is a unique mountain hall facility on the west coast of Norway with a water-based cooling system, allowing 10 KW/rack with a PUE of less than 1.15, which is an ideal facility to meet the current and future demands.
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Germany is Expected to Hold Significant Market Share
- Germany is expected to drive the data center power market significantly over the forecast period, owing to the availability of many data centers, cloud service providers, and network fabrics. Further, rising power consumption by data centers has increased operational costs; thus, data centers in the country are focusing on implementing highly efficient data center power solutions.
- Germany is often cited as the European country with the highest data center energy consumption. It also has the most significant data center market, holding approximately 25% of Europe's total capacity. As a result, energy security and availability are also becoming issues for European data centers.
- For instance, as per data from the Cloudscene, there are 495 German data centers as of last year, and most of these colocation facilities are located in and around Frankfurt. Further, there are 129 data centers in Frankfurt, followed by 52 in Hamburg and 51 in Munich. Such a high number of data centers is expected to create high demand for efficient data center power solutions in the country over the forecast period.
- In addition, the regional manufacturing and automotive sector are also emerging as a critical integrators of AI, IoT, and other advanced technologies. Further, various other end-user industries are also adopting cloud computing solutions. Implementing cloud computing and advanced data management and monitoring technologies will significantly drive the demand for the installation of data center power equipment.
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