Europe Data Center Server Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Europe Data Center Server Market is Segmented by Data Center Tier(Tier 1 and 2, and More), Form Factor(Half-Height Blades, Full-Height Blades and More), Application(virtualisation and Private Cloud, High-Performance Computing and More), Data Center Type(Hyperscalers Provider and More), End User Industry(BFSI and More)and by Country. The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Europe Data Center Server Market Size and Share

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Compare market size and growth of Europe Data Center Server Market with other markets in Technology, Media and Telecom Industry

Europe Data Center Server Market Analysis by Mordor Intelligence

The Europe data center server market reached USD 29.85 billion in 2025 and is projected to attain USD 44.63 billion by 2030, expanding at an 8.40% CAGR. Demand is accelerating as hyperscalers, telecom operators, and enterprises deploy AI-optimized infrastructure, refresh legacy estates, and comply with new EU sustainability mandates. GPU-dense designs, liquid cooling, and edge nodes are reshaping procurement patterns, while the EU Data Act and national sovereignty programs promote in-region compute. Supply-chain tightness for advanced GPUs has lifted lead times well beyond 52 weeks, forcing hybrid sourcing strategies. Meanwhile, rising power costs and land scarcity in FLAPD hubs (Frankfurt, London, Amsterdam, Paris, Dublin) channel new-build activity toward Central & Eastern Europe and Nordic sites.

Key Report Takeaways

  • By data-center tier, Tier 3 led with 72.1% of Europe data center server market share in 2024; Tier 4 is forecast to expand at a 10.3% CAGR to 2030.
  • By form factor, half-height blades held 64.3% revenue share in 2024; quarter/micro blades record the highest projected CAGR at 8.7% through 2030.
  • By application, AI/ML workloads accounted for 35.8% share of the Europe data center server market size in 2024, while virtualization/private cloud advances at an 8.3% CAGR to 2030.
  •  By data-center type, colocation facilities captured 53.7% revenue share in 2024; hyperscaler/cloud providers are growing fastest at 9.1% CAGR.
  • By end-use industry, IT & telecom commanded 32.5% share in 2024; manufacturing and Industry 4.0 register the quickest growth at 9.5% CAGR.
  • By Country, Germany held 25.1% of Europe data center server market size in 2024; Poland is the fastest-growing market at a 10.7% CAGR.

Segment Analysis

By Data-Center Tier: Tier 3 Dominance Drives Reliability Standards

Tier 3 facilities accounted for 72.1% of Europe data center server market share in 2024, a testament to their cost-to-resilience balance. Financial institutions accelerated upgrades after recent outages, adopting Tier 3 for transaction-critical workloads. DZ BANK deployed Hitachi Vantara EverFlex to secure always-on storage, reinforcing this preference. The Europe data center server market size for Tier 4 is projected to expand 10.3% annually as AI and sovereign-cloud operators demand fault-tolerant uptime. Government supercomputer projects, such as Serbia’s Eviden contract, validate the rising appeal of Tier 4. 

Edge rollouts sustain limited use of Tier 1/2 suites for development environments where proximity matters more than redundancy. However, stricter EU directives on incident reporting could gradually shift even peripheral sites toward Tier 3 certification, underpinning a structural uplift in specification requirements across the Europe data center server market.

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

By Form Factor: Half-Height Blades Lead Dense Computing Evolution

Half-height blades retained 64.3% revenue in 2024, anchoring legacy virtualization estates. Lenovo’s ThinkSystem V4 line, built on Intel Xeon 6, refreshes this mainstream segment. Europe data center server market size for quarter-height blades is rising fastest at 8.7% CAGR as operators outfit micro-edge nodes inside retail outlets and cell towers.

Full-height blades remain vital for GPU clusters; Cisco’s UCS C845A packs eight NVIDIA GPUs within 4 RU, meeting tight rack-power budgets. Modular reference architectures such as NVIDIA MGX allow operators to drop new accelerator cards without replacing rails, extending asset life and lowering TCO.

By Application/Workload: AI/ML Transforms Server Requirements

AI/ML workloads captured 35.8% Europe data center server market share in 2024, surpassing HPC for the first time. Enterprises train large language models on clusters built around AMD EPYC and NVIDIA H100; CHARM Therapeutics moved its 128-GPU estate from the UK to Iceland to blend green energy with performance. Storage-intensive analytics also expands as NVMe and E3.S drives push I/O latency below 50 µs.

Virtualization/private cloud registers an 8.3% CAGR through 2030 as banks and insurers phase out on-prem mainframes. HPE’s Blue Lion supercomputer at Leibniz Center, cooled 100% by direct liquid, delivers 30× speed-ups, proving advanced cooling’s role in AI and HPC consolidation.

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

By Data-Center Type: Colocation Facilities Bridge Enterprise and Hyperscale Demands

Colocation providers captured 53.7% of the European data center server market size in 2024 by offering compliance-ready environments without capital strain. Equinix’s acquisition of BT’s Irish facilities reflects a pivot toward green-energy geographies. Hyperscalers show a 9.1% CAGR as Microsoft, Google, and Meta pre-provision capacity for AI.

Hybrid tenancy is emerging: enterprises offload steady workloads to colos while bursting AI jobs to the cloud. Vantage Data Centers’ EUR1.4 billion expansion demonstrates large-scale build-to-suit campuses for this trend. 

By End-use Industry: IT & Telecom Lead Digital Infrastructure Investment

IT & telecom owned 32.5% revenue in 2024, driven by 5G core upgrades and OTT growth. Deutsche Bank cut server count by 25% using Google Distributed Cloud on its Autobahn FX platform. Manufacturing is the fastest-growing vertical at 9.5% CAGR, as edge analytics optimizes production lines. Rittal’s Haiger plant, managed by German Edge Cloud, illustrates real-time quality control at scale.

Healthcare continues its cautious cloud migration; the NHS shutters legacy rooms yet retains on-prem servers for GDPR-classed datasets. Energy utilities such as Vattenfall run Databricks Intelligence to model renewables dispatch, highlighting diverse demand drivers.

Europe Data Center Server Market
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Germany retained leadership with a 25.1% share of Europe data center server market in 2024. Frankfurt’s DE-CIX internet exchange and ample corporate tenants sustain high rack absorption. Revenues may reach USD 25.3 billion by 2029 as new Rhein-Main campuses secure 600 MW of incoming grid power. Land scarcity and 18-month power-hook-up queues, however, nudge operators toward Berlin and NRW.

Poland is emerging fastest, tracking a 10.7% CAGR as Warsaw becomes a cloud on-ramp hub. Google, Microsoft, and Oracle have all commissioned 50 MW-plus availability zones, leveraging attractive electricity tariffs and proximity to Western Europe. The government’s PLN 11 billion digital-decade plan allocates incentives for regional colos, accelerating rack-supply pipelines.

Competitive Landscape

Competition is intensifying as AI refresh cycles disrupt entrenched positions. Intel responds with Sierra Forest E-cores targeting cloud workloads, but availability only in 2H 2025 stalls momentum. NVIDIA’s near-monopoly on high-end GPUs is both a boon and a bottleneck; allocations favor the top eight OEMs, creating scarcity for mid-tier integrators.

European champions leverage sovereignty narratives. OVHcloud markets in-region AI clusters cooled by proprietary water loops; global players are compelled to match such sustainability metrics. Liquid-cooling vendors like Submer and GRC partner with colos to retrofit existing halls, creating a secondary competitive layer around energy efficiency. Supply-chain resilience becomes a deciding factor; vendors able to secure substrate and HBM allocations lock in orders 12 months ahead, squeezing slower rivals.

Europe Data Center Server Industry Leaders

  1. Dell Technologies

  2. Hewlett Packard Enterprise

  3. Lenovo Group

  4. Cisco Systems

  5. Fujitsu

  6. *Disclaimer: Major Players sorted in no particular order
Europe Data Center Server Market Concentration
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Need More Details on Market Players and Competitors?
Download PDF

Recent Industry Developments

  • June 2025: NVIDIA begins shipping 3,000 exaflops of Blackwell systems to France, Italy, Spain, and the UK, Europe’s largest AI hardware roll-out
  • June 2025: AWS incorporates European Sovereign Cloud subsidiary to satisfy EU data-residency rules.
  • June 2025: Vantage Data Centers raises EUR 720 million (USD 829.16 million) via Europe’s first data-center securitization to fund four German sites
  • May 2025: HPE unveils private-cloud portfolio claiming 90% VM-license savings and 2.5× lower TCO.

Table of Contents for Europe Data Center Server Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Adoption of cloud computing and X-as-a-Service
    • 4.2.2 Rapid commercial roll-out of 5G and edge nodes
    • 4.2.3 Hyperscale refresh cycle toward GPU/AI servers
    • 4.2.4 EU Green Deal incentives for liquid-cooled racks
    • 4.2.5 Sovereign AI / EU Data Act pushing in-region compute
    • 4.2.6 Rise of modular, prefabricated micro-data-centers
  • 4.3 Market Restraints
    • 4.3.1 Escalating CapEx for new facilities
    • 4.3.2 Volatile electricity and carbon prices
    • 4.3.3 Supply-chain squeeze on advanced GPUs/CPUs
    • 4.3.4 Stricter waste-heat reuse and PUE regulations
  • 4.4 Supply-Chain Analysis
  • 4.5 Regulatory Landscape (GDPR, EU Data Act, Eco-design)
  • 4.6 Technological Outlook (AI accelerators, CXL, liquid cooling)
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Bargaining Power of Buyers
    • 4.7.2 Bargaining Power of Suppliers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Competitive Rivalry
  • 4.8 Assessment of Macroeconomic Factors on the Market

5. MARKET SIZE and GROWTH FORECASTS (VALUE)

  • 5.1 By Data-Center Tier
    • 5.1.1 Tier 1 and 2
    • 5.1.2 Tier 3
    • 5.1.3 Tier 4
  • 5.2 By Form Factor
    • 5.2.1 Half-height Blades
    • 5.2.2 Full-height Blades
    • 5.2.3 Quarter-height / Micro-blades
  • 5.3 By Application / Workload
    • 5.3.1 Virtualisation and Private Cloud
    • 5.3.2 High-Performance Computing (HPC)
    • 5.3.3 Artificial Intelligence/Machine Learning and Data Analytics
    • 5.3.4 Storage-centric
    • 5.3.5 Edge / IoT Gateways
  • 5.4 By Data Center Type
    • 5.4.1 Hyperscalers/Cloud Service Provider
    • 5.4.2 Colocation Facilities
    • 5.4.3 Enterprise and Edge
  • 5.5 By End-use Industry
    • 5.5.1 BFSI
    • 5.5.2 IT and Telecom
    • 5.5.3 Healthcare and Life-Sciences
    • 5.5.4 Manufacturing and Industry 4.0
    • 5.5.5 Energy and Utilities
    • 5.5.6 Government and Defence
  • 5.6 By Geography
    • 5.6.1 Austria
    • 5.6.2 Belgium
    • 5.6.3 Denmark
    • 5.6.4 France
    • 5.6.5 Germany
    • 5.6.6 Ireland
    • 5.6.7 Italy
    • 5.6.8 Netherlands
    • 5.6.9 Norway
    • 5.6.10 Rest of Europe

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves (MandA, JVs, Funding)
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Dell Technologies
    • 6.4.2 Hewlett Packard Enterprise
    • 6.4.3 Lenovo Group
    • 6.4.4 Cisco Systems
    • 6.4.5 Fujitsu
    • 6.4.6 Huawei Technologies
    • 6.4.7 Inspur Group
    • 6.4.8 International Business Machines (IBM)
    • 6.4.9 Quanta Computer
    • 6.4.10 Super Micro Computer
    • 6.4.11 Atos SE
    • 6.4.12 Advanced Micro Devices (AMD)
    • 6.4.13 Intel Corporation
    • 6.4.14 Nvidia Corp.
    • 6.4.15 Foxconn / Hon Hai (including QCT)
    • 6.4.16 Gigabyte Technology
    • 6.4.17 MiTAC / TYAN
    • 6.4.18 ASRock Rack
    • 6.4.19 Inventec
    • 6.4.20 Kingston Technology

7. MARKET OPPORTUNITIES and FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
***The final report will also include ''Rest of Europe.'
You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

Europe Data Center Server Market Report Scope

A data center server is basically a high-capacity computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.

The Europe data center server market is segmented by form factor (blade sever, rack server, and tower server), by end-user (it & telecommunication, BFSI, government, media and entertainment, and other end users), and by geography (France, United Kingdom, Sweden, Austria, Belgium, Germany, Ireland, Italy, Norway, Poland, Spain, Switzerland, Netherlands, Denmark, and rest of Europe). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Data-Center Tier Tier 1 and 2
Tier 3
Tier 4
By Form Factor Half-height Blades
Full-height Blades
Quarter-height / Micro-blades
By Application / Workload Virtualisation and Private Cloud
High-Performance Computing (HPC)
Artificial Intelligence/Machine Learning and Data Analytics
Storage-centric
Edge / IoT Gateways
By Data Center Type Hyperscalers/Cloud Service Provider
Colocation Facilities
Enterprise and Edge
By End-use Industry BFSI
IT and Telecom
Healthcare and Life-Sciences
Manufacturing and Industry 4.0
Energy and Utilities
Government and Defence
By Geography Austria
Belgium
Denmark
France
Germany
Ireland
Italy
Netherlands
Norway
Rest of Europe
By Data-Center Tier
Tier 1 and 2
Tier 3
Tier 4
By Form Factor
Half-height Blades
Full-height Blades
Quarter-height / Micro-blades
By Application / Workload
Virtualisation and Private Cloud
High-Performance Computing (HPC)
Artificial Intelligence/Machine Learning and Data Analytics
Storage-centric
Edge / IoT Gateways
By Data Center Type
Hyperscalers/Cloud Service Provider
Colocation Facilities
Enterprise and Edge
By End-use Industry
BFSI
IT and Telecom
Healthcare and Life-Sciences
Manufacturing and Industry 4.0
Energy and Utilities
Government and Defence
By Geography
Austria
Belgium
Denmark
France
Germany
Ireland
Italy
Netherlands
Norway
Rest of Europe
Need A Different Region or Segment?
Customize Now

Key Questions Answered in the Report

What is the current size of the Europe data center server market?

The market is valued at USD 29.85 billion in 2025 and is projected to reach USD 44.63 billion by 2030.

Which country leads server demand in Europe?

Germany leads with 25.1% share in 2024 thanks to Frankfurt’s connectivity and large enterprise base.

How fast is AI driving server upgrades?

AI/ML workloads already hold 35.8% market share and hyperscale GPU refreshes add about +2.5 percentage points to the market’s CAGR.

Why are operators adopting liquid cooling?

EU Green Deal incentives and higher rack densities allow operators to cut power use by up to 90% and achieve PUE below 1.3.

Europe Data Center Server Market Report Snapshots