Report

The Europe data center construction market by investment is expected to grow at a CAGR of 18.58% from 2024 to 2030.

EUROPE DATA CENTER CONSTRUCTION MARKET KEY HIGHLIGHTS

- The European data center market has expanded significantly because of the demand from hyperscale companies, the requirements of Artificial Intelligence, and the expansion of edge computing. To accommodate AI needs, data center operators have adapted advanced infrastructure and implemented innovative cooling and energy-efficient solutions to meet sustainability goals. Such factors are also projected to support the Europe data center construction market growth.
- Supply chain disruptions, rising inflation, a skilled workforce shortage, and land and power scarcity are expected to negatively affect the Europe data center construction market.
- Strong demand for data center capacity has been driven by hyperscale providers, financial institutions, healthcare organizations, and other large corporations contributing to unprecedented power capacity volume in the market.
- The European government will encourage data center investments through initiatives, such as expanding land availability for development, lowering electricity costs for data centers, providing tax incentives, and facilitating renewable energy procurement. These measures are expected to drive Europe data center construction market growth over the forecast period.
- The digitalization of businesses will lead to a rise in data center investments by colocation, cloud, internet, and telecommunications providers. Telecom companies, such as T-Mobile are driving the deployment of 5G services across the continent.
- Some areas, such as London, Paris, and Frankfurt face land availability constraints restricting opportunities for new companies to enter the market. However, emerging regions, such as Amsterdam, Milan, and Warsaw, are increasingly preferred.

EUROPE DATA CENTER CONSTRUCTION MARKET SEGMENTATION INSIGHTS

- Implementing modular power infrastructure, such as containerized power solutions used by OHVcloud in France in data centers is expected to yield long-term cost savings. These systems are more efficient, allowing for space optimization and reducing maintenance requirements.
- Leading power supply companies, such as Schneider Electric, ABB, Eaton, Legrand, and Switch, have addressed the rising power demands of data centers. In response to the increasing construction of data centers, these companies have recommended building their substations to supply power directly to their data center campuses.
- The adoption of HVO fuel as an alternative to diesel in generators is anticipated to grow due to its sustainability in the European data center construction market. Many operators, including Equinix, Digital Realty, STACK Infrastructure, and Green Mountain, have opted to replace diesel with HVO fuel to power their backup generators.
- Real-time monitoring software featuring automation and AI is increasingly important as Equinix has Real-time monitoring with AI-powered automation, and Digital Realty has enhanced AI for operational monitoring. This technology can forecast maintenance requirements, detect component failures, and execute automatic switchover, ensuring continuous operations.
- Various new and innovative power and cooling systems emphasizing sustainability have entered the Europe data center construction market. Infrastructure providers have increasingly prioritized the development of products that minimize environmental impact.
- The adoption of cooling methods, such as evaporative coolers, has increased in regions with suitable climates, such as Norway, Sweden, Finland, and Iceland, providing effective cooling for data centers.
- Beyond constructing and establishing data centers, the companies, including Equinix, Digital Realty, Green Mountain, and Telehouse emphasize strengthening physical security and employ real-time Data Center Infrastructure Management (DCIM) systems to monitor and manage facilities.

Facility Type
- Hyperscale Data Centers
- Colocation Data Centers
- Enterprise Data Centers
Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgears
- PDUs
- Other Electrical Infrastructure
Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers & Dry Coolers
- Other Cooling Units
Cooling Techniques
- Air-based Cooling
- Liquid-based Cooling
General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression
- Physical Security
- DCIM/BMS Solutions
Tier Standards
- Tier I & Tier II
- Tier III
- Tier IV

EUROPE DATA CENTER CONSTRUCTION MARKET GEOGRAPHICAL ANALYSIS

- The data center construction and expansion activities are expected to be primarily concentrated in the large-scale colocation facilities of key European regions, such as Germany, France, the Netherlands, and the UK.
- Frankfurt and London are among the leading data center markets in Europe. However, these cities are not likely to see significant hyperscale development due to space limitations in building large-scale facilities.
- The availability of land for data center development in London and Berlin is a major constraint on the continent. Operators are expected to move to other regions, such as Milan and Warsaw, due to better access to land.
- Several factors drive data center investments, including access to abundant power, a favorable cost environment, business-friendly tax policies, and ideal climatic conditions in Nordic countries, such as Sweden, Norway, Finland, and Iceland, which enable efficient free cooling for servers.
- Ireland attracts investments from hyperscale data center operators, such as Microsoft and Amazon Web Services.
- The U.K. benefits from strong connectivity hosting major subsea cables linking it to other European regions and various continents.
- Regions, such as Marseille and Lyon, have gained traction as alternative data center locations due to land availability and better energy supply in France.
- Switzerland's political neutrality, data protection regulations, and proximity to key European markets enhance its attractiveness to data center operators with Zurich and Geneva as the main data center hubs offering high security and reliability.
- Milan is Italy's primary data center hub, benefiting from its strong economy and central location for connecting with Southern Europe, and smaller data center markets, such as Rome and Turin, are emerging as growing data center locations due to their favorable business environments.
- The Nordics, including Denmark, Sweden, Norway, Iceland, and Finland, increasingly attract data center investments due to their cool climate, abundant renewable energy, such as hydropower, wind, and geothermal energy, and government incentives.

Geography

- Western Europe
o U.K.
o Germany
o France
o Netherlands
o Ireland
o Switzerland
o Italy
o Spain
o Belgium
o Portugal
o Greece
o Other Western European Countries
- Nordics
o Denmark
o Sweden
o Norway
o Finland
o Iceland
- Central and Eastern Europe
o Russia
o Poland
o Austria
o Czech
o Other Central & Eastern European Countries

EUROPE DATA CENTER CONSTRUCTION MARKET VENDOR INSIGHTS

- The growing demand for data centers is set to create substantial revenue opportunities for construction contractors. Significant contractors in this field include AECOM, Arup, DPR Construction, Artelia, and Bouygues Construction.
- The Europe data center construction market features all the leading global colocation operators, including Equinix, Digital Realty, CyrusOne, DataBank, Iron Mountain, Vantage Data Centers, NTT DATA, and STACK Infrastructure.
- Key hyperscale operators investing in the Europe data center construction market include Amazon Web Services (AWS), Microsoft, Meta (Facebook), and Google. They have broadened their presence across major data center hubs throughout Europe.
- The Europe data center construction market has seen the emergence of several new players, including ACS Group, Ar Telecom, Blue, CloudHQ, dataR, Apto Data Centers, DATA for MED, and EDGNEX Data Centers by DAMAC. The arrival of these new operators could disrupt market share increasing the competition.
- Despite the presence of major operators, several new companies have established large data center campuses across Europe. CloudHQ and Ar Telecom are building extensive data center facilities throughout the continent.
- Digital Realty, Equinix, and Green Mountain are among the major operators in the Europe data center construction market. These companies have developed multiple data center campuses and facilities across the continent in various countries, including the UK, France, Ireland, Nordics, and Central and Eastern European countries.

Key Data Center Support Infrastructure Providers

- 3M
- Airedale
- AERMEC
- Alfa Laval
- ABB
- Aksa Power Generation
- AVK
- Baudouin
- Carrier
- Caterpillar
- Condair Group
- Climaveneta
- Cummins
- D'HONDT THERMAL SOLUTIONS
- Daikin Applied
- Delta Electronics
- Eaton
- EBM-PAPST
- EMICON INNOVATION AND COMFORT
- Enrogen
- FlaktGroup
- Grundfos
- Guntner
- GESAB
- HiRef
- HITEC Power Protection
- Honeywell
- INNIO
- JAEGGI Hybridtechnologie AG
- Johnson Controls
- Kohler
- KyotoCooling
- Legrand
- Mitsubishi Electric
- Munters
- NetNordic Group AS
- Nlyte Software
- Perkins Engines
- Piller Power Systems
- Riello Elettronica Group
- Rittal
- Rolls-Royce
- Schneider Electric
- Siemens
- Socomec Group
- STULZ
- Trane Technologies (Ingersoll Rand)
- Vertiv
- ZIEHL-ABEGG

Prominent Construction Contractors

- ACS Group
- AECOM
- Altron
- AODC
- AEON Engineering
- APL Data Center
- ARC:MC
- Ariatta
- ARSMAGNA GROUP
- Artelia
- Arup
- Aurora Group
- AtkinsRealis
- Basler & Hofmann
- BENTHEM CROUWEL ARCHITECTS
- Bouygues Construction
- Bravida
- CapIngelec
- Caverion
- Coromatic (E. ON)
- Collen Construction
- COWI
- DataDome
- Deerns
- Designer Group
- Dipl.-Ing. H. C. Hollige
- Dornan
- DPR Construction
- Engexpor
- Equans
- Etop
- Exyte (M+W Group)
- Eiffage
- Ethos Engineering
- EYP Mission Critical Facilities
- Ferrovial
- Fluor Corporation
- Future-tech
- Granlund Group
- GreenMDC
- Gottlieb Paludan Architects
- Haka Moscow
- ICT Facilities
- IDOM
- IMOS
- ISG
- JCA Engineering
- JERLAURE
- John Sisk & Son
- Kirby Group Engineering
- KKCG Group
- Linesight
- LPI Group
- M+W Group (EXYTE)
- Mace
- Mercury
- Metnor Construction
- MiCiM
- MT Hojgaard
- Nicholas Webb Architects (NWA)
- NORMA Engineering
- PM Group
- PORR Group
- PQC
- Quark Unlimited Engineering
- Ramboll
- RED Engineering Design
- Reid Brewin Architects
- Renco
- RKD
- Royal HaskoningDHV
- Salboheds
- Skanska
- SPIE
- Starching
- STO Building Group
- STRABAG
- STS Group
- Sweco
- TECHKO
- Tetra Tech
- TPF Ingenierie
- TTSP
- Turner & Townsend
- Warbud
- Winthrop Technologies
- YIT
- Techbau
- Generale Prefabbricati S.p.A.
- Rosenberger
- ZAUNERGROUP

Prominent Data Center Investors

- 3data
- 3S Group
- Aire Networks
- Amazon Web Services
- Ark Data Centres
- Artnet
- Atman
- Apple
- Aruba S.p.A.
- AtlasEdge
- AQ Compute
- atNorth
- Atomdata (Rosatom)
- Bahnhof
- Beyond.pl
- Bulk Infrastructure
- China Mobile International
- Compass Data Centers
- Colt Data Centre Services (COLT DCS)
- CyrusOne
- DATA4
- DataCenter United
- Datum
- DENV-R
- Digital Realty
- EcoData Center
- EdgeConneX
- Equinix
- Meta
- Global Switch
- Google
- Green Datacenter
- Green Mountain
- Iron Mountain
- IXcellerate
- K2 STRATEGIC
- Kao Data
- Keppel Data Centres
- LCL Data Center
- Linx Data Centers
- Maincubes SECURE DATACENTERS
- Merlin Properties
- Microsoft
- MTS
- NTT DATA
- Penta Infra
- Pure Data Centres
- Rostelecom
- Selectel
- STACK Infrastructure
- STACKIT
- Storespeed
- Switch Datacenters
- Telehouse
- Thesee DataCenter
- Vantage Data Centers
- VIRTUS Data Centres
- Yondr

New Entrants

- ADA Infrastructure
- Business Overview
- Service Offerings
- Apto Data Centre
- Ar Telecom
- Art Data Centres
- Atlantic Data Infrastructure
- Best Wonder Business
- Blue
- Bluestar Data Center
- Castle IT
- Ceske Radiokomunikace
- CloudHQ
- Data Castle
- dataR
- Dataformed
- Digital Reef
- Eclairion
- EDGNEX Data Centres by DAMAC
- Elementica
- Energia Data Centre
- Evroc
- Form8tion Data Centers
- Global Technical Realty
- GreenScale
- Goodman
- Hyperco
- Ingenostrum
- KEVLINX
- Keysource + Namsos DataSenter (NDS)
- Lasercharm
- Latos
- Nation Data Center
- Nautilus Data Technologies
- EdgeNebula
- Mediterra Datacenters
- Nehos
- Nethits Telecom
- OPCORE
- PGIM Real Estate
- PHOCEA DC
- PolarDC
- Prime Data Centers
- Quetta Data Centers
- QTS Data Centers
- REMOV
- SDC Capital Partners
- SEGRO
- Serve Centric
- VITALI

KEY QUESTIONS ANSWERED:

1. How big is the Europe data center construction market?
2. How many MW of power capacity is expected to reach the Europe data center construction market by 2030?
3. What is the growth rate of the Europe data center construction market?
4. What is the estimated market size in terms of area in the Europe data center construction market by 2030?
5. What are the key trends in the Europe data center construction market?