FLAP Data Center Industry to 2027 - Adoption of 5G Network Services, Artificial Intelligence and Cloud-Based Services Drives Growth

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Jan 22, 2023, 14:30 ET

DUBLIN, Jan. 22, 2023 /PRNewswire/ -- The "FLAP Data Center Market - Investment Analysis & Growth Opportunities 2022-2027" report has been added to ResearchAndMarkets.com's offering.

The FLAP data center market is expected to grow at a CAGR of 2.86% from 2021-2027.

Driving Factors for Investment in the Market

The FLAP data center market is one of Western Europe's major data center markets. The market is witnessing the growth of investments due to the adoption of 5G network services, Artificial Intelligence, cloud-based services, IoT and big data.
The increase in the adoption of cloud-based services in the country is growing the establishment of cloud regions by major cloud service providers such as Google, AWS, Microsoft, Tencent, OVHcloud, IBM, Alibaba, and Oracle.
Telecom operators Vodafone, EE, Three UK, O2, Telefonica Deutschland, VodafoneZiggo, KPN Mobile, T-Mobile, and Deutsche Telekom are some of the significant operators deploying 5G network services across the FLAP market.
In addition, in August 2022, the Greater London Authority announced plans to change the application process for data center development to tackle and ease the West London power crisis with better electricity management regulations.
In terms of artificial intelligence, Cyxtera Technologies, a data center operator, announced plans to use CareAR's service experience management platform for providing remote hands service at its data centers in London and other locations.

Driving Factors for Area in the Market

Free Trade Zones, Special Economic Zones, and industrial parks majorly attract investment in the FLAP data center market. For instance, the UK government has established a low tax zone at London Gateway that will offer tax incentives, no stamp duties, rebates on construction & machinery, lower tariffs, and lower customs obligations.
Some of the real estate companies in the FLAP industry are involved in developing the data center campus. For instance, P3 logistics Parks, a European logistics real estate firm, has acquired land to establish a data center campus in Hanau, west of Frankfurt. The campus is constructed in several phases.
In the FLAP market, Frankfurt, London, Amsterdam, Paris and Slough, Chesham, and Dartford are significant locations for facilities development.
As per the Cushman & Wakefield global data center market comparison 2022 report, the land price in London is around USD 150 per square foot. The higher land cost in London is expected to shift investments to other cities in the industry with lower land prices. For instance, Amsterdam has a lower land price for building facilities in the FLAP data center market, which is USD 38 per square foot.
Some locations allocate most of the area for developing facilities in the FLAP industry. For instance, the Dutch Data Center Association states that over 70% of the data center floor space is in the Amsterdam region.

Driving Factors for the Power Capacity in the Market

In terms of renewable energy, in the FLAP market, renewable energy is majorly produced from solar, wind, hydroelectricity & marine & wave energy, and bioenergy. For instance, in April 2022, France's Government announced a strategy for renewable energy innovation projects as per the government's France 2030 national investment plan, with an investment of over USD 1 billion.
Governments across the industry are targeting to reduce carbon emissions. For instance, the Netherlands targets net zero carbon emissions by 2050.
The cities under the FLAP industry made commitments regarding carbon neutrality. For instance, Frankfurt has committed to converting the energy supply to renewable energy in the entire city by 2050.
The market also witnessed the commitments made by investors and organizations for procuring renewable energy sources to power the facilities. For instance, In April 2022, Telehouse announced that it aims to net zero carbon emissions by 2026.
The facilities in the FLAP market also witnessed the power purchase agreement for powering the centers. For instance, Google entered the corporate power purchase agreement (CPPA) with Orsted to provide 50 MW of wind energy for its facility in Germany.

Supply & Demand in the Flap Data Center Market

Government support and initiatives are expected to increase the boost the FLAP market. For instance, in February 2022, the UK Government formed a joint venture with Ark Data Centers known as Crown Hosting Data Centres (CHDC) and invested around USD 300 million in hosting services.
In the FLAP market, several governments support the data centers to overcome the restrictions due to the moratoriums. For instance, according to the New urban master plan to avoid the moratorium, Frankfurt's planning department developed a new concept to manage the data center construction in Frankfurt for better usage of resources and reducing noise and carbon emissions.
Several sectors, such as BFSI, healthcare, education, hospitality, government, and transport, have observed data migration to the cloud in the FLAP market. For instance, in May 2022, Google signed an agreement with the Central Dutch government to facilitate multi-cloud adoption by government entities across several departments.
Some major colocation service providers in the FLAP market are CyrusOne, Digital Realty, Data4, Equinix, EdgeConneX, Global Switch, Serverfarm, Iron Mountain, Telehouse, Colt Data Centre Services, and VIRTUS Data Centres.
The increased demand for colocation data center facilities in the FLAP market is witnessing investments for new entrants such as CloudHQ, Global Technical Realty (GTR), and Yondr.

Reasons to Buy:
1. Market size available in the investment, area, power capacity, and FLAP market revenue.
2. Assess the revenue share between retail and wholesale colocation across the FLAP market.
3. Assessment of the data center construction cost breakup across the FLAP market.
4. Study of the macroeconomic and microeconomic factors across the FLAP market.
5. An assessment of the data center investment in the FLAP market by the data center operators.
6. Investments in the area (square feet) and power capacity (MW) across locations in the FLAP market.
7. A detailed study of the existing FLAP data center market landscape, an in-depth industry analysis, and insightful predictions about industry size during the forecast period.
8. Snapshot of existing and upcoming third-party data center facilities in the FLAP market.
a) Facilities Covered (Existing): 259
b) Facilities Identified (Upcoming): ~29
c) Coverage: 4 Cities
d) Existing vs. Upcoming (Area)
e) Existing vs. Upcoming (IT Load Capacity)
9. Data center colocation market in the FLAP
a) Market Revenue & Forecast (2021-2027)
b) Retail Colocation Pricing
10. The FLAP market investments are classified into power, cooling, and general construction services with sizing and forecast.
11. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
12. Business overview and product offerings of prominent construction contractors, support infrastructure providers, and investors operating in the industry.
13. A transparent research methodology and the analysis of the demand and supply aspects of the industry.

Vendor Landscape

Data Center Construction Contractors & Sub-Contractors

2bm
AECOM
Arup
APL Data Center
Artelia
ARC:MC
Atkins
BENTHEM CROUWEL ARCHITECTS
BladeRoom Data Centres
Bouygues Construction
CAP INGELEC
Deerns
Designer Group
Dornan
DPR Construction
Eiffage
EYP MCF
Future-tech
HDR Architecture
ICT Facilities
INFINITI
ISG
JCA Engineering
JERLAURE
ISG
Kirby Group Engineering
KLEINUNDARCHITEKTEN
KMG Partnership
Linesight
LPI Group
Lupp Group
Mace Group
Max Bogl Group
Mercury
Metnor Construction
MiCiM
M+W Group
NWA
Oakmont Construction
PM Group
Red Engineering
Reid Brewin Architects
Royal HaskoningDHV
Salute Mission Critical
Skanska
SPIE UK
STO Building Group
STS Group
Sudlows
Turner & Townsend
Waldeck
Winthrop Engineering & Contracting
Zech Group

Support Infrastructure Providers

3M
ABB
Airedale
Alfa Laval
Carrier
Caterpillar
Climaveneta (Mitsubishi Electric)
Condair
Cummins
D'Hondt Thermal Solutions
Delta Electronics
Eaton
ebm-papst
FlaktGroup
Grundfos
Guntner
GS Yuasa International
HITEC Power Protection
Honeywell International
Johnson Controls
KOHLER-SDMO
KyotoCooling
Legrand
Mitsubishi Electric
Munters
Nlyte Software
Perkins Engines
Piller Power Systems
Riello UPS
Rittal
Rolls-Royce
Schneider Electric
Siemens
STULZ
Socomec
Trane Technologies
Vertiv

Data Center Investors

Amazon Web Services (AWS)
Ark Data Centres
China Mobile International (CMI)
Colt Data Centre Services
CyrusOne
DATA4
Digital Realty
Echelon Data Centres
EdgeConneX
Equinix
Global Switch
Iron Mountain
Kao Data
Keppel Data Centres
Maincubes
NTT Global Data Centers
Microsoft
NewTelco
Netwise Hosting
Serverfarm
T5 Data Centers
Telehouse
Vantage Data Centers
VIRTUS Data Centres

New Entrants

CloudHQ
Global Technical Realty (GTR)
Yondr

Key Questions Answered:

1. How much is the FLAP data center market investment expected to grow?
2. What is the growth rate of the FLAP data center market?
3. How many data centers have been identified in the FLAP market?
4. What are the driving factors for the FLAP data center market?
5. Who are the key investors in the FLAP data center market?

Report Attribute	Details
No. of Pages	187
Forecast Period	2021 - 2027
Estimated Market Value (USD) in 2021	$4.3 Billion
Forecasted Market Value (USD) by 2027	$5.09 Billion
Compound Annual Growth Rate	2.8 %
Regions Covered	Global

Key Topics Covered:

1. Existing & Upcoming Third-Party Data Centers in Flap
1.1. Historical Market Scenario
1.2. 250+ Unique Data Center Properties
1.3. Data Center It Load Capacity
1.4. Data Center White Floor Area Space
1.5. Existing Vs Upcoming Data Center Capacity by Cities
1.6. Cities Covered
1.6.1. Frankfurt
1.6.2. London
1.6.3. Amsterdam
1.6.4. Paris
1.7. List of Upcoming Data Center Facilities

2. Investment Opportunities in Flap
2.1. Investment Opportunities in Flap
2.2. Investment by Area
2.3. Investment by Power Capacity

3. Data Center Colocation Market in Flap
3.1. Colocation Services Market in Flap
3.2. Retail Vs Wholesale Data Center Colocation

4. Market Dynamics
4.1. Market Drivers
4.2. Market Trends
4.3. Market Restraints

5. Market Segmentation
5.1. Electrical Infrastructure: Market Size & Forecast
5.2. Mechanical Infrastructure: Market Size & Forecast
5.3. General Construction Services: Market Size & Forecast
5.4. Breakup of Construction Cost

6. Tier Standard Investment
6.1. Tier I & Ii
6.2. Tier Iii
6.3. Tier Iv

7. Geography Segmentation
7.1. Frankfurt
7.1.1. Microeconomic & Macroeconomic Factors for Germany Market
7.1.2. Investment in Frankfurt
7.1.3. Investment by Area
7.1.4. Investment by Power Capacity
7.1.5. Colocation Service Market in Frankfurt
7.1.6. Retail Vs Wholesale Data Center Colocation
7.1.7. Colocation Pricing (Quarter Rack, Half Rack, Full Rack) & Add-On
7.2. London
7.2.1. Microeconomic & Macroeconomic Factors for the UK Market
7.2.2. Investment in London
7.2.3. Investment by Area
7.2.4. Investment by Power Capacity
7.2.5. Colocation Service Market in London
7.2.6. Retail Vs Wholesale Data Center Colocation
7.2.7. Colocation Pricing (Quarter Rack, Half Rack, Full Rack) & Add-On
7.3. Amsterdam
7.3.1. Microeconomic & Macroeconomic Factors for the Netherlands Market
7.3.2. Investment in Amsterdam
7.3.3. Investment by Area
7.3.4. Investment by Power Capacity
7.3.5. Colocation Service Market in Amsterdam
7.3.6. Retail Vs Wholesale Data Center Colocation
7.3.7. Colocation Pricing (Quarter Rack, Half Rack, Full Rack) & Add-On
7.4. Paris
7.4.1. Microeconomic & Macroeconomic Factors for France Market
7.4.2. Investment in Paris
7.4.3. Investment by Area
7.4.4. Investment by Power Capacity
7.4.5. Colocation Service Market in Paris
7.4.6. Retail Vs Wholesale Data Center Colocation
7.4.7. Colocation Pricing (Quarter Rack, Half Rack, Full Rack) & Add-On