Data Center Colocation Market in EMEA - Industry Outlook and Forecast 2019-2024
The EMEA data center colocation market is expected to grow at a CAGR of over 5% during the period 2018–2024.
Technological advancements are driving the EMEA data center colocation market. The development of additional facilities that can process exabytes of data generated by both business and consumer users are growing. The colocation market in Western Europe has been witnessing significant investments since 2017, with multiple projects carried out by colocation service providers. The market saw an increase in M&A activities, which is aided by continuous investments in new facilities by Equinix, ST Telemedia, and CyrusOne. The Europe colocation market has witnessed a significant boost in investments due to the implementation of the GDPR in May 2018. The Middle East and Africa market is also witnessing growth on account of the increased adoption of cloud-based services and the improvement in fiber connectivity across the region.
The following factors are expected to contribute to the growth of the market during the forecast period:
- Hybrid Infrastructure Service to Increases Colocation Demand
- Demand for Wholesale Space Increase Hyperscale Investments
- Availability of Renewable Energy Sources
- Increasing Popularity of District Heating Concept
- Growth in Merger and Acquisition Activities
The report considers the present scenario of the market during the forecast period and its market dynamics for the period 2018−2024. It covers a detailed overview of several market growth enablers, restraints, and trends. The report profiles and examines leading companies and several other prominent companies operating in the market.
EMEA Data Center Colocation Market: Segmentation
This research report includes detailed segmentation by electrical infrastructure, mechanical infrastructure, general construction, colocation services, and geography. Power outages and fluctuations due to grid instability make UPS systems critical components of data center operations. Although many facilities do not suffer from power outages, power fluctuations increase the importance of UPS systems for continuous operations. Continuous innovations in these backup systems, such as lithium-ion batteries, have increased their applicability in the energy-consuming industry, such as data centers.
Generators ensure 100% availability of data center services. The use of generators in EMEA is crucial as power outages are frequent in certain countries, especially in the MEA region. The generators market will continue to grow because of the continuous construction of large and mega facilities in EMEA. However, the adoption of generators will be high in the MEA region, with maximum demand coming from the Africa region as the power outages are frequent.
The use of indirect evaporative coolers and air/water-side economizers will continue to grow in Nordic and Northern Western Europe countries. The need to reduce CAPEX and OPEX, conserve data center space, and reduce power supply to cooling units, the coolers segment is expected to grow during the forecast period. Innovations in rack units are driving the rack market. 42U rack units are the commonly used one in EMEA data centers. However, the market has witnessed an increased demand for 45U, 47U, and 48U racks installed in large capacities recently. Vendors are also continually introducing rack with innovative designs that provide 80% airflow perforation, with enhanced cabling channels, and more support for weight capacity.
The high demand for hyperscale services is driving the market share of the building development segment. Colocation service providers such as AWS, Google, Facebook, Apple, and Microsoft employ professionals to work alongside construction contractors and design and architectural firms to build data centers. The DCIM segment is expected to grow at the highest CAGR during the forecast period. The increasing construction of facilities has increased power consumption and carbon emissions. Therefore, the monitoring of each IT infrastructure component, especially in medium- and large-sized facilities, becomes cumbersome. Hence, the installation of DCIMs, which are integrated into the data center infrastructure for monitoring and managing the facility, is expected to grow. Besides, power surges are also leading to infrastructure failures and equipment damage.
Retail colocation services are likely to grow among several African and Eastern Europen countries. Companies are shifting from on-premise to colocation services to improve reliability and scalability in their services. The increased demand for business-specific IT infrastructure with 100% uptime and scalability is driving organizations to shift from on-premise to colocation services. .
Market Segmentation by Investment
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
- Power Capacity
Market Segmentation by Electrical Infrastructure
- UPS Systems
- Rack PDUs
- Transfer Switches and Switchgears
Market Segmentation by Mechanical Infrastructure
- Cooling Systems
- Other Mechanical Infrastructure
Market Segmentation by General Construction
- Building Development
- Installation & Commissioning Services
- Building Design
- Physical Security
- Data Center Infrastructure Management (DCIM)
Market Segmentation by Services Types
EMEA Data Center Colocation Market: Geography
In Eastern Europe, a majority of facilities identified with an investment of more than $10 million with few facilities with investment more than $35 million. The data center development is mainly concentrated in the Czech Republic, Austria, Poland, and Russia in Eastern Europe. The increasing internet penetration in Austria, the Czech Republic, Latvia, Poland, is witnessing an increase in demand for internet-based services. Enterprises prefer to opt for colocation services than managing on-premise infrastructure. The market in MEA is growing significantly with investments from telecommunication and pure-play colocation and managed hosting service providers. Submarine cable projects such as Africa-1 connecting South Africa, the Middle East, Pakistan, and Europe, which is expected to be operational till 2021, is likely to boost the market.
Key Countries Profiled:
- Western Europe
- Central and Eastern Europe
- Nordic Countries
Key Vendor Analysis
Equinix led the market with an estimated net rentable area of around 575,000 square feet through 16 facilities that had opened and under construction in 2018. Equinix has also invested in facilities across Western Europe, Nordic, and Central and Eastern Europe. Western Europe accounted for 94% of the total investment made in EMEA by Equinix. Equinix invested in locations such as London, Amsterdam, Frankfurt, and Paris. The company is also expanding its colocation space by acquiring multiple facilities. For instance, Equinix completed the acquisition of Switch Datacenter AMS1 to expand its operations in Amsterdam, Netherlands. The company expands or constructs new facilities due to the growing demand for cloud-based services. Moreover, the market in Western Europe and Nordic is likely to witness more construction of wholesale data center space than retail during the forecast period. The Western Europe market has witnessed multiple mergers and acquisitions in the past decade. CyrusOne acquisitions of Zenium Data Centers in 2018, has helped CyrusOne to establish a strong base in Germany, meanwhile expanding in the UK and the Netherlands markets. The report covers the vendor share analysis in the following way:
- Area Developed (Square Feet)
- Power Capacity (MW)
- Colocation Services
Key Company Profiles
- NTT Communications
- Digital Realty
- Global Switch
- Deutsche Telekom
ther Prominent Vendors
- Atman Data Center (ATM S.A)
- Bezeq International
- Colt Data Center Services (Colt DCS)
- Centurylink (Level 3 Communication)
- Cyxtera Technologies
- Flexential ( Peak 10 & VIAWest)
- Global Connect
- Green Datacenter
- Scaleway Data Center
- Interoute (GTT Communications)
- Keppel DC
- LDeX Group
- Liquid Telecommunication
- ST Telemedia Global Data Centers (STT GDC)
- Teraco Data Environments
- T-Systems (Deutsche Telekom)
- Verne Global
- Zayo Group Holdings
Key Market Insights Include
The report provides the following insights into the EMEA data center colocation market for the forecast period 2019–2024.
1. It offers comprehensive insights into current industry trends, trend forecasts, and growth drivers about the market.
2. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
3. It offers a complete overview of market segments and the regional outlook of the market.
4. The report offers a detailed overview of the vendor landscape, competitive analysis, and key strategies to gain a competitive advantage.