Europe Data Center Colocation Market

Europe Data Center Colocation Market Size, Share, Growth Analysis, By Type(Retail, Wholesale ​), By Tier(Tier 1, Tier 2, Tier 3, Tier 4), By Enterprise Size(Large Enterprises, Small and Medium-sized Enterprises), By End Use(Retail, BFSI, IT & Telecom, Media & Entertainment), By Country(United Kingdom, Germany, France, Italy), By Region - Industry Forecast 2024-2031


Report ID: SQMIR50A2020 | Region: Regional | Published Date: February, 2024
Pages: 157 | Tables: 63 | Figures: 70

Europe Data Center Colocation Market Dynamics

Europe Data Center Colocation Market Drivers

Digital Transformation:

  • The rapid pace of digital transformation across industries is driving the demand for data center colocation services. Enterprises are shifting towards cloud-based solutions, IoT, big data, and AI, requiring robust and scalable data infrastructure.

Increased Data Usage:

  • The exponential growth of data usage, driven by online activities, e-commerce, streaming services, and social media, is necessitating data centers with high processing and storage capabilities.

Europe Data Center Colocation Market Restraints

Energy Consumption and Environmental Concerns:

  • Data centers consume significant amounts of energy, raising concerns about their environmental impact. Stricter regulations and sustainability goals may impose challenges on data center operators.

Costs and Scalability:

  • Building and maintaining data centers involve substantial capital and operational costs. Scalability to meet fluctuating demand while optimizing costs can be complex.
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Europe Data Center Colocation Market size was valued at USD 15.92 billion in 2022 and is poised to grow from USD 18.41 billion in 2023 to USD 56.99 billion by 2031, growing at a CAGR of 15.20% in the forecast period (2024-2031).

The competitive landscape of the Europe Data Center Colocation Market is characterized by the presence of both global and regional players vying for market share. Key players in the market include industry giants such as Equinix, Digital Realty Trust, NTT Communications, and Interxion (a subsidiary of Digital Realty). These players have established a strong presence with extensive data center networks across major European cities. They offer a range of services, including connectivity options, hybrid cloud solutions, and managed services, catering to the diverse needs of enterprises. 'Equinix', 'Digital Realty Trust', 'NTT Communications', 'Interxion (a subsidiary of Digital Realty)', 'CyrusOne', 'Kao Data', 'e-shelter (a subsidiary of NTT Communications)', 'Colt Data Centre Services', 'Global Switch', 'Telehouse (a subsidiary of KDDI Corporation)', 'Data4', 'Zenium Data Centers', 'IXcellerate', 'Altice Data Center', 'Green Datacenter AG'

The rapid pace of digital transformation across industries is driving the demand for data center colocation services. Enterprises are shifting towards cloud-based solutions, IoT, big data, and AI, requiring robust and scalable data infrastructure.

Rise of Hyperscale Cloud Providers: The region is experiencing an influx of hyperscale cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). These providers are driving significant demand for data center colocation services to support their expanding infrastructure needs.

In the Europe data center colocation market, the largest country is typically Germany. Germany has a robust economy, advanced technology infrastructure, and is strategically positioned within Europe, making it a prime location for data center colocation services. The presence of major cities like Frankfurt, known for its significant connectivity and data exchange, further enhances Germany's prominence in the data center industry.

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Europe Data Center Colocation Market

Report ID: SQMIR50A2020

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