Data Center Market in Western Europe - Industry Outlook and Forecasts to 2025 and the Impact of COVID-19

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Aug 11, 2020, 07:45 ET

DUBLIN, Aug. 11, 2020 /PRNewswire/ -- The "Data Center Market in Western Europe - Industry Outlook and Forecast 2020-2025" report has been added to ResearchAndMarkets.com's offering.

The implementation of the General Data Protection Regulations (GDPR) is expected to boost the data center market in Western Europe. As cloud-based services in Western Europe include hosting database, office software, financial and accounting, managing customer relationships and computer services, the demand for colocation, managed, and cloud-connectivity services will gain momentum. Several SMEs are looking to adopt cloud services such as PaaS and SaaS, and it is expected that more than 90% of SMEs in Western Europe will operate businesses through the cloud by 2024. The demand for hybrid infrastructure services is expected to grow at a CAGR of over 25% during the forecast period.

The increase in demand for data center services in Europe has led to the rise in merger and acquisition agreements. Also, data center construction is still growing at a significant rate, with large service providers investing in new construction and expansions in the European region. Besides, the data center colocation market in Europe is also witnessing increased interest from real estate and investment firms. The Europe data center market witnessed significant mergers and acquisition activities by US-based and APAC-based organizations. In 2019, QTS Realty Trust entered the market through the acquisition of TCN SIG Telehousing BV in the Netherlands. The market is also witnessing an increase in partnerships to develop and expand data center presence. For instance, Equinix partnered with GIC to invest over $1 billion for expansion activities in Europe in 2019.

The following factors are expected to contribute to the growth of the data center market in Western Europe during the forecast period:

Regulations driving Cloud Investments
Growth in Colocation & Hyperscale Investments
High Procurement of AI-based Servers
Increase in Procurement of Green Energy
Usage of Lithium-ion Batteries & Fuel Cells in Data Centers

The data center market in Western Europe is expected to witness greenfield construction largely. High investments from hyperscale providers will become a major driver for revenue generation for general contractors and sub-contractors in the market. The UK market witnessed over 20 data center projects that were opened or under construction in 2019. Among them, about ten facilities were opened in 2019, and remaining facilities are likely to open by June 2020. Several facilities are built with multi-level security. There is an increasing demand for IP video surveillance systems in the market. APL, TPF Ingnierie, and CAP INGELEC are some of the notable players providing construction services in France. In terms of physical security, there is a growing demand for IP video surveillance systems in the market. A majority of facilities developed in the Netherlands is expected to be greenfield development projects during the forecast period. Equinix, CyrusOne, Microsoft, Digital Realty, and Interxion carry out greenfield development in France.

Data centers of Tier II standards are designed with minimal redundancy. There are a few facilities in Western Europe that are Tier II certified based on designing and construction. In these facilities, redundancy is recognized between UPS and PDU systems. A majority of under-developed projects across the globe fall under the Tier III category. This trend is likely to continue in Western Europe during the forecast period, with many operators expected to move to Tier IV standards due to the growth in rack power density and critical data center applications. Germany is witnessing the highest number of Tier III facilities, followed by the UK, France, and the Netherland. Most facilities in France are Tier III certified by the Uptime Institute. The use of OCP infrastructure is likely to increase among colocation providers in the country during the forecast period.

The Western Europe data center market continues to grow for greenfield, brownfield, and modular data center construction. The market is witnessing increased growth in the number of facilities, with high adoption of efficient and modular infrastructure solutions. It has a strong presence of vendors across all categories - IT, electrical, and mechanical infrastructure.

The adoption of ODM-based infrastructure solutions is increasing in penetration among enterprise operators in Europe. The deployment of OCP-ready data centers by colocation operators has aided this growth. HPE, Dell Technologies, Atos, IBM, Cisco, and Lenovo have a strong presence in the region.

Prominent Data Center Critical (IT) Infrastructure Providers

Arista
Atos
Broadcom
Cisco
Dell Technologies
Extreme Network
Hewlett Packard Enterprise (HPE)
Hitachi Vantara
Huawei
IBM
Inspur Group
Inventec
Juniper
Lenovo
NEC
NetApp
Oracle
Pure Storage
Quanta Cloud Technology (Quanta Computer)
Super Micro Computer
Wistron (Wiwynn)

The report provides the following insights into the data center market in Western Europe during the forecast period 2020-2025.

It offers comprehensive insights into current industry trends, trend forecasts, and growth drivers about the data center market in Western Europe.
The report provides the latest analysis of share, growth drivers, challenges, and investment opportunities.
It offers a complete overview of segments and the regional outlook of the data center market in Western Europe.
The study offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.

For more information about this report visit https://www.researchandmarkets.com/r/dz75oa

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