Data Center market expects steady growth in 2020 - 2027

    The Global Data Centre market is expecting a steady growth in the upcoming years 2020 -2027, to account for US$ 89.9 Bn in 2027.

    The reason for that is a growing demand for green/energy-efficient data center, which is designed to achieve maximum energy efficiency and decreasing the environmental impact. 

    Ericsson, Deutsche Telekom, Telia Sonera, Telenor, and Tele2 TDC Group along with government agencies are investing a high capital in improving internet connectivity in Western Europe and the Nordic region.

    Europe is one of the leading active data center markets, which is expected to grow at a CAGR of 16% during the forecast period. According to the Global Interconnection Index by Equinix Frankfurt, about 70% of the data traffic is concentrated in Germany, France, Italy, Spain, and the UK. London is expected to be the largest interconnection market. Hyperscaleservice providers are actively investing in the Europe data center construction market.

    The Europe data center construction market is expected to grow due to increased investments from colocation, cloud, internet, and telecommunication service providers. Further, growth in data, general data protection regulation (GDPR), the popularity of social media, high adoption of smart wearable devices, and the rise of connected reality will be significant growth drivers for Europe data center construction market.

    For instance, Amazon is planning to build a US$ 1.08 Bn (Euro 1 Bn) data center in Dublin; IBM plans to open three data centers in UK; also, after two data centers in Ireland and Denmark, Facebook is announced to construct its third data center in Denmark. Furthermore, Interxion has plans to invest US$ 87.8 Mn (Euros 83 Mn) to construct new data center facilities in London, Frankfurt, and Stockholm.

    Western Europe (Netherlands, UK, Germany, France), Central and Eastern Europe (Russia and the Czech Republic, Poland and Austria, and other countries, and the Nordic region (Denmark, Finland, Sweden, Iceland, and Norway) are the major contributors to the Europe data center construction market. The UK and the Netherlands are expanding significantly, and the market in the UK is expected to grow at a CAGR of 2% during 2018–2024. Several global cloud service players such as AWS, Microsoft, and Google and many colocation service providers such as Equinix, Digital Realty, CyrusOne, and Colt DCS are expanding their presence in the UK, which is likely to increase the market growth. The implementation of cloud-based and big data services will be a strong growth enabler for the UK data center market, thereby fueling additional investments during the forecast period.

    Key Vendor Analysis

    Multiple initiatives by hyperscale service providers to reduce the cost of efficient infrastructure services are expected to aid the growth of the Europe data center construction market. Infrastructure resellers and distributors are expected to compete with each other in the region. The demand for cloud data service and high-density operations is expected to grow during the forecast period. Partnerships with local and modular data center service providers will increase revenues for global vendors operating in the market.The need for installation, commissioning, and maintenance services will generate local job opportunities in the market.

    Prominent Construction Contractors
    • AECOM
    • Arup Group
    Bruce Shaw
    • Cap Ingelec
    • DPR Construction
    • Etix Everywhere
    • Flex Enclosure
    • Future-tech
    • Jones Engineering
    • KMCS
    • LUPP Group
    • Mace group
    • Mercury engineering
    • NCC
    • Red Engineering
    • Skanska
    • SISK Group
    • Structure Tone

    Prominent Infrastructure Providers
    • ABB
    • Bosch Security
    • Caterpillar
    • Cummins
    Eaton
    • EURO-DIESEL
    • Hitec Power Protection
    • KOHLER
    • Legrand Group
    • MTU OnSite Energy
    • Nlyte Software
    • Piller Power Systems
    • Riello UPS
    • Rittal
    • Schneider Electric
    • Socomec Group
    • STULZ
    • Vertiv

    Prominent Data Center Investors
    • Adgar
    • Advania Data Center
    • Apple
    Aruba
    • AWS
    • Colt Data Centre Services (Colt DCS)
    • CyrusOne
    • Digital Realty
    • Equinix
    • Facebook
    • Google
    • Global Switch
    • Iliad Data Center
    • Interxion
    • IXcellerate
    • Microsoft
    • NTT Communications
    • OVH
    • STT GDC
    • T-Systems
    • T5 Data Centers