Netherlands Data Center Market Size and Share

Netherlands Data Center Market (2025 - 2030)

Netherlands Data Center Market Analysis by Mordor Intelligence

The Netherlands Data Center Market size is estimated at USD 11.25 billion in 2025, and is expected to reach USD 17.85 billion by 2030, at a CAGR of 9.67% during the forecast period (2025-2030). In terms of IT load capacity, the market is expected to grow from 1.09 thousand megawatt in 2025 to 2.41 thousand megawatt by 2030, at a CAGR of 4.92% during the forecast period (2025-2030). The market segment shares and estimates are calculated and reported in terms of MW. Capacity growth is propelled by hyperscale cloud build-outs, sovereign AI initiatives, and mandatory sustainability targets that prioritize energy-efficient designs and waste-heat reuse. Competitive intensity remains moderate as global colocation leaders consolidate prime Amsterdam assets while a long tail of regional specialists pursues edge and sovereign-cloud niches. Grid congestion and permitting caps in the Randstad region are triggering geographic dispersion toward secondary cities where land costs, municipal fiber projects, and renewable-energy availability enhance site economics. Rising power densities associated with AI training are accelerating the adoption of liquid and immersion cooling technologies that enable 100 kW racks and support heat-recovery schemes.

Key Report Takeaways

  • By data center size, large facilities commanded 41.88% share of the Netherlands data center market size in 2024, whereas mega facilities are projected to register the highest 6.70% CAGR to 2030.
  • By tier type, Tier 3 sites led with 63.33% share of the Netherlands data center market size in 2024, and Tier 4 installations are poised for the fastest 7.40% CAGR over 2030, the same horizon.
  • By data center type, colocation accounted for 68.12% share of the Netherlands data center market size in 2024, yet hyperscale campuses are set to post a 5.90% CAGR through 2030.
  • By end user, IT and telecom entities represented 50.74% share of the Netherlands data center market size in 2024, while BFSI demand is expected to rise at a 6.18% CAGR between 2025 and 2030.
  • By hotspot, Amsterdam held 78.40% of the Netherlands data center market share in 2024, while the Rest of Netherlands segment is forecast to expand at a 4.50% CAGR through 2030.

Segment Analysis

By Data Center Size: Hyperscale Scaling Outpaces Legacy Footprints

Large facilities retained 41.88% Netherlands data center market share in 2024, reflecting entrenched enterprise and multi-tenant demand clustered around Amsterdam’s carrier hotels. However, mega campuses are projected to post a 6.70% CAGR to 2030 as hyperscalers condense compute into fewer, energy-efficient locations. The Netherlands data center market size for mega facilities is set to exceed 800 MW by 2030, driven by Oracle’s USD 1 billion AI deployment and Google’s phased Westpoort build. Mega sites justify capital-intensive liquid cooling and onsite substation investments that smaller footprints cannot amortize. At the other end, small and micro data centers address edge latency targets but face cost headwinds tied to staffing and remote management.

Enterprises in regulated industries adopt a phased migration path, using medium facilities as interim hybrid-cloud staging grounds before contracting dedicated hyperscale nodes. Investment momentum concentrates in sites offering ≥80 MW campus potential plus renewable energy PPAs that safeguard long-term power pricing. Mega-campus operators leverage economies of scale to introduce integrated heat-exchange networks supplying neighboring greenhouse complexes, unlocking additional tax incentives. With Amsterdam permits constrained, provinces such as Groningen and North Holland market land parcels adjacent to 380 kV transmission corridors, accelerating the regional diversification of capacity.

Netherlands Data Center Market: Market Share by Data Center Size

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By Tier Type: Reliability Imperatives Elevate Tier 4 Adoption

Tier 3 configurations dominated with 63.33% Netherlands data center market share in 2024 thanks to favorable cost-resilience trade-offs for mainstream enterprise workloads. The Netherlands data center market size dedicated to Tier 4, though modest today, is forecast to grow at a 7.40% CAGR through 2030 as AI, fintech, and sovereign cloud tenants demand 99.995% uptim. Tier 4 new-builds feature 2N+1 power architectures with isolated dual-bus switchgear that accommodate 100 kW racks without derating. Financial institutions upgrading to real-time payments and algorithmic trading migrate critical workloads from internal Tier 2 halls to third-party Tier 4 suites to comply with operational-resilience regulations under NIS2.

Operators retrofit Tier 3 halls with modular UPS blocks and hot-aisle containment to bridge the resiliency gap, yet permitting pathways increasingly link tax breaks to demonstrable Tier 4 heat-recovery plans. AI cluster growth further drives Tier 4 demand: model training jobs spanning days cannot tolerate unplanned outages. Campus designs now integrate redundant 150 kV feeds, on-site HVO (hydrotreated vegetable oil) standby generators, and lithium-ion battery storage sized for 15-minute runtime to satisfy Tier 4 accreditation. Provinces offering streamlined Tier 4 certification processes gain advantage in attracting capital-intensive AI tenants.

By Data Center Type: Colocation Holds Scale Advantage Amid Hyperscale Surge

Colocation retained 68.12 of % Netherlands data center market share in 2024, leveraging Amsterdam’s dense interconnect ecosystem to attract enterprises seeking cloud-on-ramp proximity. Yet hyperscale self-builds are forecast to expand at a 5.90% CAGR as cloud giants pursue design autonomy, specialized cooling, and consolidated asset control. The Netherlands data center market size allocated to hyperscale campuses could surpass 1 GW by 2030, narrowing the colocation share in aggregate capacity terms. Within colocation, wholesale suites outperform retail cages as corporate IT teams wrap multiple workloads into contiguous footprints to streamline governance.

Edge and micro-colocation nodes gain share in secondary cities where 5G low-latency use cases and Industry 4.0 deployments demand local processing. European Data Act provisions on portability encourage enterprises to favor vendor-neutral colocation platforms that decouple compute from proprietary hyperscaler ecosystems. Operators differentiate through carrier-dense fabrics, sovereign-cloud-compliant service catalogs, and heat-reuse partnerships that reduce community heating costs. While hyperscalers accelerate capital spend, colocation incumbents respond with build-to-suit halls and ecosystem-rich campuses that integrate Internet exchange points, cloud on-ramps, and AI testing sandboxes.

Netherlands Data Center Market: Market Share by Data Center Type

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By End User: Financial Services Accelerate Digital Sovereignty

IT and telecom stakeholders accounted for 50.74% of deployed MW in 2024, reflecting longstanding carrier hotel dynamics around the AMS-IX node. BFSI workloads, however, are set to register a 6.18% CAGR as Dutch and EU banking directives push institutions toward real-time processing, algorithmic risk models, and stringent data localization. The Netherlands data center market size catering to BFSI could top 360 MW by 2030, intensifying competition for Tier 4 space. Manufacturing demand scales steadily as the Eindhoven photonics and semiconductor clusters embed predictive-maintenance and digital-twin applications that require latency-bounded compute.

Government adoption follows the National Digitalization Strategy, mandating sovereign storage for sensitive data and spurring public-sector cloud frameworks hosted in domestic facilities. Media and entertainment workloads benefit from edge nodes in Enschede and Almere, reducing round-trip latency for real-time streaming personalization. Research and healthcare institutions seek GPU-rich clusters for genomics and AI drug discovery but face budget constraints, often partnering with commercial colocation providers for dedicated high-performance pods.

Geography Analysis

Amsterdam retained 78.40% Netherlands data center market share in 2024, supported by AMS-IX’s 12.724 Tb/s peak traffic and 878 connected networks that underpin dense peering communities. The Netherlands data center market size outside Amsterdam is forecast to grow fastest at a 4.50% CAGR as operators bypass grid and permit bottlenecks by siting campuses in Groningen, North Brabant, and Overijssel. Eindhoven leverages its ASML-anchored semiconductor ecosystem to attract compute-intensive photonics R&D, while Almere’s municipally funded fibre backhaul reduces connectivity barriers for new entrants.

Municipal incentives couple reduced land-lease rates with district-heating integration requirements, positioning secondary hubs as sustainability showcases. Grid capacity maps published by TenneT highlight 380 kV corridors near Eemshaven that align with offshore wind farm connections, enabling renewable-backed power purchase agreements. As Amsterdam vacancy tightens, enterprises adopt hub-and-spoke topologies that anchor core data lakes in Science Park or Schiphol Rijk while deploying edge caches in Drenthe or Gelderland to meet latency objectives. Over the forecast horizon, permit workflows and power-price differentials will continue to redistribute incremental capacity toward provinces offering streamlined approvals and renewable headroom.

Amsterdam’s entrenched carrier density and AMS-IX traffic scale assure its primacy, yet its expansion potential is constrained by moratoria on new hyperscale builds and acute grid congestion that inflate project timelines. Facility operators with grandfathered permits monetize scarcity through premium wholesale rates and long-term take-or-pay contracts that appeal to AI tenants requiring predictable power allocations. Continued investment in submarine cable projects such as IOEMA fortifies Amsterdam’s connectivity moat, but the city’s power-price volatility linked to EU carbon pricing erodes cost competitiveness relative to emerging hubs.

Secondary provinces capitalize on policy support and renewable energy synergies. Groningen’s Eemshaven node ties directly into 700 MW of offshore wind capacity, offering attractive green-power PPAs and ample 380 kV grid headroom. North Brabant targets semiconductor supply-chain computing with incentives tailored to ASML and its partner network, coupling enterprise-zone tax abatements with expedited environmental assessments. Overijssel municipalities pitch industrial-park campuses that integrate waste-heat into district networks, turning thermal output into monetizable assets under the national circular-economy agenda.

Cross-country fiber mesh expansion underpins distributed architectures. KPN and Delta Fiber are on track to achieve 90% household coverage by 2027, enabling enterprises to deploy micro-data centers within 10 km of end-user clusters. Government-funded sovereign cloud pilots mandate domestic hosting, directing incremental workloads to Dutch facilities over neighboring German or Belgian alternatives. Collectively, these dynamics shift the geographic mix while preserving Amsterdam’s role as the region’s interconnection core.

Competitive Landscape

Market consolidation is moderate: Equinix and Digital Realty control roughly 25% of Amsterdam’s installed MW, yet more than 30 independent providers operate across the Netherlands, keeping pricing discipline in check. Incumbents leverage multi-campus scales to negotiate renewable PPAs and pioneer heat-reuse integrations that satisfy stringent permitting requirements. Fragmentation persists in secondary cities, where regional specialists such as NorthC tailor hybrid-cloud suites and sovereign compliance frameworks for mid-market enterprises.

Strategic differentiation increasingly revolves around sustainability credentials, cooling IP, and regulatory preparedness. Asperitas markets immersion-cooling as-a-service modules to colocation operators, accelerating broader ecosystem adoption. Maincubes secured EUR 1 billion (USD 1.13 billion) sustainability-linked financing tying interest margins to annual PUE and renewable-energy milestones, illustrating investor pressure for verifiable ESG performance.[2]George Leopold, “Google Invests USD 640 Million in Netherlands Expansion,” Data Center Knowledge, datacenterknowledge.com OVHcloud touts a 27% component reuse rate and proprietary warm-water cooling to attract cost-sensitive cloud users wary of energy price escalation.[3]Sarah Thomas, “Maincubes Integrates Sustainability Targets Into New Financing,” Data Centre News UK, datacentrenews.uk

Hyperscalers embed on-premises fiber meet-me rooms, compelling colocation landlords to upgrade interconnection fabrics and offer cross-connect SLAs aligned with cloud region latencies. Patent portfolios in thermal management and AI workload orchestration emerge as strategic weapons, enabling operators to monetize licensing or command premium lease rates through differentiated service levels. Compliance readiness for the EU AI Act and NIS2 becomes a sales prerequisite, advantaging players with centralized governance platforms capable of delivering unified audit trails across multi-country footprints.

Netherlands Data Center Industry Leaders

  1. Microsoft Corporation

  2. Google LLC

  3. IBM Corporation

  4. Oracle Corporation

  5. Cloudflare Inc.

  6. *Disclaimer: Major Players sorted in no particular order
Netherlands Data Center Market
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Recent Industry Developments

  • July 2025: The Dutch government published the National Digitalization Strategy emphasizing joint public-sector cloud adoption and sovereign cloud exploration.
  • July 2025: Oracle announced a USD 1 billion investment in AI and cloud infrastructure across the Netherlands over the next five years.
  • March 2025: Dutch parliament approved eight motions calling for reduced reliance on U.S. cloud vendors and preferential treatment for European providers.
  • December 2024: NorthC expanded its national footprint through acquisitions and capacity additions targeting data residency demand.

Free With This Report

We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.

Netherlands Data Center Market
Netherlands Data Center Market
Netherlands Data Center Market
Netherlands Data Center Market

Table of Contents for Netherlands Data Center 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 Surging hyper-scale cloud build-outs by the “Big Three” hyperscalers
    • 4.2.2 Accelerated fibre-to-the-home rollout driving edge demand in municipal nodes
    • 4.2.3 Rapid adoption of liquid and immersion cooling to maximise rack density
    • 4.2.4 Government-backed tax incentives for circular-energy heat-re-use projects
    • 4.2.5 Growing AI-training workloads pushing 100 kW+ rack configurations
    • 4.2.6 Re-industrialisation of the semiconductor supply chain in the European Union
  • 4.3 Market Restraints
    • 4.3.1 National moratoriums on new hyperscale permits in key FLAP markets
    • 4.3.2 Escalating electricity tariffs linked to EU carbon pricing
    • 4.3.3 Acute scarcity of grid interconnection capacity in Randstad region
    • 4.3.4 Rising public opposition to land-intensive, water-cooled facilities
  • 4.4 Market Outlook
    • 4.4.1 IT Load Capacity
    • 4.4.2 Raised Floor Space
    • 4.4.3 Colocation Revenue
    • 4.4.4 Installed Racks
    • 4.4.5 Rack Space Utilization
    • 4.4.6 Submarine Cable
  • 4.5 Key Industry Trends
    • 4.5.1 Smartphone Users
    • 4.5.2 Data Traffic Per Smartphone
    • 4.5.3 Mobile Data Speed
    • 4.5.4 Broadband Data Speed
    • 4.5.5 Fiber Connectivity Network
    • 4.5.6 Regulatory Framework
  • 4.6 Value Chain and Distribution Channel Analysis
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Suppliers
    • 4.7.3 Bargaining Power of Buyers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (MW)

  • 5.1 By Data Center Size
    • 5.1.1 Large
    • 5.1.2 Massive
    • 5.1.3 Medium
    • 5.1.4 Mega
    • 5.1.5 Small
  • 5.2 By Tier Type
    • 5.2.1 Tier 1 and 2
    • 5.2.2 Tier 3
    • 5.2.3 Tier 4
  • 5.3 By Data Center Type
    • 5.3.1 Hyperscale/Self-built
    • 5.3.2 Enterprise/Edge
    • 5.3.3 Colocation
    • 5.3.3.1 Non-Utilized
    • 5.3.3.2 Utilized
    • 5.3.3.2.1 Retail Colocation
    • 5.3.3.2.2 Wholesale Colocation
  • 5.4 By End User
    • 5.4.1 BFSI
    • 5.4.2 IT and ITES
    • 5.4.3 E-Commerce
    • 5.4.4 Government
    • 5.4.5 Manufacturing
    • 5.4.6 Media and Entertainment
    • 5.4.7 Telecom
    • 5.4.8 Other End Users
  • 5.5 By Hotspot
    • 5.5.1 Amsterdam
    • 5.5.2 Rest of Netherlands

6. COMPETITIVE LANDSCAPE

  • 6.1 Strategic Moves
  • 6.2 Market Share Analysis
  • 6.3 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)
    • 6.3.1 Microsoft Corporation
    • 6.3.2 Google LLC
    • 6.3.3 IBM Corporation
    • 6.3.4 Oracle Corporation
    • 6.3.5 Cloudflare Inc.
    • 6.3.6 OVH Groupe SAS
    • 6.3.7 The Constant Company LLC (Vultr)
    • 6.3.8 Claranet Limited
    • 6.3.9 CloudHQ LLC
    • 6.3.10 Data Facilities B.V.
    • 6.3.11 Digital Realty Trust Inc.
    • 6.3.12 Iron Mountain Inc.
    • 6.3.13 NorthC Holding B.V.
    • 6.3.14 Nippon Telegraph and Telephone Corporation
    • 6.3.15 Switch Datacenters Amsterdam B.V.
    • 6.3.16 Equinix Inc.
    • 6.3.17 EdgeConneX Inc.
    • 6.3.18 Maincubes B.V.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and unmet-need assessment
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List of Tables & Figures

  1. Figure 1:  
  2. VOLUME OF IT LOAD CAPACITY, MW, NETHERLANDS, 2018 - 2030
  1. Figure 2:  
  2. VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), NETHERLANDS, 2018 - 2030
  1. Figure 3:  
  2. VALUE OF COLOCATION REVENUE, USD MILLION, NETHERLANDS, 2018 - 2030
  1. Figure 4:  
  2. VOLUME OF INSTALLED RACKS, NUMBER, NETHERLANDS, 2018 - 2030
  1. Figure 5:  
  2. RACK SPACE UTILIZATION, %, NETHERLANDS, 2018 - 2030
  1. Figure 6:  
  2. COUNT OF SMARTPHONE USERS, IN MILLION, NETHERLANDS, 2018 - 2030
  1. Figure 7:  
  2. DATA TRAFFIC PER SMARTPHONE, GB, NETHERLANDS, 2018 - 2030
  1. Figure 8:  
  2. AVERAGE MOBILE DATA SPEED, MBPS, NETHERLANDS, 2018 - 2030
  1. Figure 9:  
  2. AVERAGE BROADBAND SPEED, MBPS, NETHERLANDS, 2018 - 2030
  1. Figure 10:  
  2. LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, NETHERLANDS, 2018 - 2030
  1. Figure 11:  
  2. VOLUME OF IT LOAD CAPACITY, MW, NETHERLANDS, 2018 - 2030
  1. Figure 12:  
  2. VOLUME OF HOTSPOT, MW, NETHERLANDS, 2018 - 2030
  1. Figure 13:  
  2. VOLUME SHARE OF HOTSPOT, %, NETHERLANDS, 2018 - 2030
  1. Figure 14:  
  2. VOLUME SIZE OF AMSTERDAM, MW, NETHERLANDS, 2018 - 2030
  1. Figure 15:  
  2. VOLUME SHARE OF AMSTERDAM, MW, HOTSPOT, %, NETHERLANDS, 2018 - 2030
  1. Figure 16:  
  2. VOLUME SIZE OF REST OF NETHERLANDS, MW, NETHERLANDS, 2018 - 2030
  1. Figure 17:  
  2. VOLUME SHARE OF REST OF NETHERLANDS, MW, HOTSPOT, %, NETHERLANDS, 2018 - 2030
  1. Figure 18:  
  2. VOLUME OF DATA CENTER SIZE, MW, NETHERLANDS, 2018 - 2030
  1. Figure 19:  
  2. VOLUME SHARE OF DATA CENTER SIZE, %, NETHERLANDS, 2018 - 2030
  1. Figure 20:  
  2. VOLUME SIZE OF LARGE, MW, NETHERLANDS, 2018 - 2030
  1. Figure 21:  
  2. VOLUME SIZE OF MASSIVE, MW, NETHERLANDS, 2018 - 2030
  1. Figure 22:  
  2. VOLUME SIZE OF MEDIUM, MW, NETHERLANDS, 2018 - 2030
  1. Figure 23:  
  2. VOLUME SIZE OF MEGA, MW, NETHERLANDS, 2018 - 2030
  1. Figure 24:  
  2. VOLUME SIZE OF SMALL, MW, NETHERLANDS, 2018 - 2030
  1. Figure 25:  
  2. VOLUME OF TIER TYPE, MW, NETHERLANDS, 2018 - 2030
  1. Figure 26:  
  2. VOLUME SHARE OF TIER TYPE, %, NETHERLANDS, 2018 - 2030
  1. Figure 27:  
  2. VOLUME SIZE OF TIER 1 AND 2, MW, NETHERLANDS, 2018 - 2030
  1. Figure 28:  
  2. VOLUME SIZE OF TIER 3, MW, NETHERLANDS, 2018 - 2030
  1. Figure 29:  
  2. VOLUME SIZE OF TIER 4, MW, NETHERLANDS, 2018 - 2030
  1. Figure 30:  
  2. VOLUME OF ABSORPTION, MW, NETHERLANDS, 2018 - 2030
  1. Figure 31:  
  2. VOLUME SHARE OF ABSORPTION, %, NETHERLANDS, 2018 - 2030
  1. Figure 32:  
  2. VOLUME SIZE OF NON-UTILIZED, MW, NETHERLANDS, 2018 - 2030
  1. Figure 33:  
  2. VOLUME OF COLOCATION TYPE, MW, NETHERLANDS, 2018 - 2030
  1. Figure 34:  
  2. VOLUME SHARE OF COLOCATION TYPE, %, NETHERLANDS, 2018 - 2030
  1. Figure 35:  
  2. VOLUME SIZE OF HYPERSCALE, MW, NETHERLANDS, 2018 - 2030
  1. Figure 36:  
  2. VOLUME SIZE OF RETAIL, MW, NETHERLANDS, 2018 - 2030
  1. Figure 37:  
  2. VOLUME SIZE OF WHOLESALE, MW, NETHERLANDS, 2018 - 2030
  1. Figure 38:  
  2. VOLUME OF END USER, MW, NETHERLANDS, 2018 - 2030
  1. Figure 39:  
  2. VOLUME SHARE OF END USER, %, NETHERLANDS, 2018 - 2030
  1. Figure 40:  
  2. VOLUME SIZE OF BFSI, MW, NETHERLANDS, 2018 - 2030
  1. Figure 41:  
  2. VOLUME SIZE OF CLOUD, MW, NETHERLANDS, 2018 - 2030
  1. Figure 42:  
  2. VOLUME SIZE OF E-COMMERCE, MW, NETHERLANDS, 2018 - 2030
  1. Figure 43:  
  2. VOLUME SIZE OF GOVERNMENT, MW, NETHERLANDS, 2018 - 2030
  1. Figure 44:  
  2. VOLUME SIZE OF MANUFACTURING, MW, NETHERLANDS, 2018 - 2030
  1. Figure 45:  
  2. VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, NETHERLANDS, 2018 - 2030
  1. Figure 46:  
  2. VOLUME SIZE OF TELECOM, MW, NETHERLANDS, 2018 - 2030
  1. Figure 47:  
  2. VOLUME SIZE OF OTHER END USER, MW, NETHERLANDS, 2018 - 2030
  1. Figure 48:  
  2. VOLUME SHARE OF MAJOR PLAYERS, %, NETHERLANDS

Netherlands Data Center Market Report Scope

Amsterdam are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.

By Data Center Size
Large
Massive
Medium
Mega
Small
By Tier Type
Tier 1 and 2
Tier 3
Tier 4
By Data Center Type
Hyperscale/Self-built
Enterprise/Edge
Colocation Non-Utilized
Utilized Retail Colocation
Wholesale Colocation
By End User
BFSI
IT and ITES
E-Commerce
Government
Manufacturing
Media and Entertainment
Telecom
Other End Users
By Hotspot
Amsterdam
Rest of Netherlands
By Data Center Size Large
Massive
Medium
Mega
Small
By Tier Type Tier 1 and 2
Tier 3
Tier 4
By Data Center Type Hyperscale/Self-built
Enterprise/Edge
Colocation Non-Utilized
Utilized Retail Colocation
Wholesale Colocation
By End User BFSI
IT and ITES
E-Commerce
Government
Manufacturing
Media and Entertainment
Telecom
Other End Users
By Hotspot Amsterdam
Rest of Netherlands
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Market Definition

  • IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
  • ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
  • RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
  • DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
  • TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
  • COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
  • END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
Keyword Definition
Rack Unit Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches.
Rack Density It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning.
IT Load Capacity The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW).
Absorption Rate It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity.
Raised Floor Space It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter.
Computer Room Air Conditioner (CRAC) It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center.
Aisle It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle.
Cold Aisle It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature.
Hot Aisle It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC.
Critical Load It includes the servers and other computer equipment whose uptime is critical for data center operation.
Power Usage Effectiveness (PUE) It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient.
Redundancy It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected.
Uninterruptible Power Supply (UPS) It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only.
Generators Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption.
N It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure.
N+1 Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required.
2N It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center.
In-Row Cooling It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature.
Tier 1 Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours.
Tier 2 A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours.
Tier 3 A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours.
Tier 4 It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes.
Small Data Center Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center.
Medium Data Center Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center.
Large Data Center Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center.
Massive Data Center Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center.
Mega Data Center Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center.
Retail Colocation It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs).
Wholesale Colocation It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises.
Hyperscale Colocation It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+).
Mobile Data Speed It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest.
Fiber Connectivity Network It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km).
Data Traffic per Smartphone It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB).
Broadband Data Speed It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable.
Submarine Cable A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another.
Carbon Footprint It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities.
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Research Methodology

Mordor Intelligence follows a four-step methodology in all our reports.

  • Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
  • Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
  • Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
  • Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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