Europe Data Center Market Landscape 2025-2030

The Europe data center market size by investment is expected to grow at a CAGR of 12.80% from 2024 to 2030.

KEY TRENDS

High Adoption of Artificial Intelligence

• The integration of artificial intelligence into data centers across Europe has increased, leading to a rise in demand for AI-driven infrastructure. Several industries, including financial services, consulting companies, IT, healthcare, retail, manufacturing, and agriculture, are adopting artificial intelligence to boost their productivity and enhance operational efficiency.
• In February 2025, Brookfield Infrastructure Partners and Data4 announced plans to invest over USD 20.7 billion in developing AI infrastructure across France over the next five years.
• In October 2024, Microsoft revealed plans to invest over USD 4.8 billion to enhance AI and cloud infrastructure in northern Italy, where industries like manufacturing, healthcare, finance, and agriculture are increasingly adopting AI technologies.
• Artificial Intelligence adoption is expected to rise across Europe, driving significant growth in data center development to support increased computing and storage needs.

Increase in 5G Deployments Aiding in Growth of Edge Data Centers

• The development of 5G technology is transforming the Europe data center market, leading to increased investments for the development of edge data centers to significantly address the need for low latency and fast connectivity.
• In October 2024, Vodafone Germany inaugurated its nationwide 5G Standalone network, covering over 92% of the population by using 700 MHz, 1.8 GHz, and 3.5 GHz frequency bands to support real-time communication.
• Edge data center providers like Quetta and EDGNEX Data Centers by DAMAC are rapidly expanding their presence across multiple European nations to support local data processing.

Sustainability Initiatives: Attracting Data Center Operators

• With growing demand for digital services, the Europe data center market is increasingly focusing on sustainability. The major players like Google and Microsoft are committed to using 100% renewable energy to operate their data centers and adopting advanced cooling methods and waste heat utilization to minimize environmental impact.
• In April 2025, Verne Global revealed that its London data center would transition from diesel to hydrotreated vegetable oil (HVO) for its backup generators, in collaboration with Crown Oil, to reduce more than 90% of net CO2 emissions.
• In November 2024, Amazon entered into a deal by signing over four power purchase agreements (PPAs) in Greece for procuring renewable energy, including two agreements for over 44.4 MW from the Vermio wind farm and two other agreements sourced from different wind farms.
• Sustainability initiatives are attracting significant investments from data center operators in Europe to minimize their greenhouse gas emissions.

Rise in the District Heating Concept

• District heating is a sustainable solution that distributes centrally generated heat to nearby buildings via insulated pipes and improves energy efficiency by utilizing local renewable energy sources and waste heat.
• In April 2025, atNorth, a developer in the Europe data center market, entered into a heat-reuse agreement with Finnish retail group Kesko Corporation to provide waste heat from its FIN02 data center in Espoo to a nearby Kesko store to reduce the store's heating emissions by over 200 tons of CO2 each year.
• In January 2025, Queen Mary University of London utilized waste heat from its Tier II data center to heat campus buildings, using a multi-stage heat recovery system developed in collaboration with Schneider Electric and APT.
• The district heating system in Europe is significant in advancing sustainability in Europe. Data center operators are incorporating renewable energy sources in district heating systems to enhance sustainability, further drive energy efficiency, and support local economic growth across the region.

Innovative Construction Techniques for Data Centers

• The Europe data center market is growing due to technological advancements and the integration of digital services. To address the sustainability challenges in this sector, innovative construction methods are being employed to improve energy efficiency, operational flexibility, and overall data center performance.
• European countries have adopted several innovative techniques, including advanced cooling solutions, modular and prefabricated designs, digital twin technology, and the use of sustainable construction materials.
• The rapid expansion of data centers in Europe is increasing the need for innovative construction methods that meet the rising demand for digital services while prioritizing sustainability. Europe is focusing on sustainability by adopting energy-efficient technologies, such as promoting modular designs and employing advanced cooling and power infrastructure solutions in data centers.

EUROPE DATA CENTER MARKET SEGMENTATION INSIGHTS

• The adoption of HVO fuel as an alternative to diesel in generators is anticipated to grow in the Europe data center market due to its sustainability. 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 AI automation is expected to gain traction in the forecast period. This technology can help in data center maintenance efficiently and detect component failures to ensure continuous operations.
• The implementation of modular power infrastructure, such as containerized power solutions in data centers, is expected to yield long-term cost savings. These systems are more efficient, allowing for space optimization and reducing maintenance requirements.
• Adopting Uninterrupted Power Supply (UPS) systems is a key driver, where lithium-ion batteries are gaining traction for backup power.
• District heating is the innovative concept that is expected to grow significantly among data center facilities in the Europe data center market. For instance, in January 2025, a new data center development plan was initiated at Erkrath, outside of Düsseldorf, in Germany. The new data center will supply waste heat to support district heating through agreements with the municipal utilities in Erkrath, Germany.
• The Nordic countries consist of abundant renewable energy sources, particularly wind power. The favourable climate conditions in this region make it an ideal spot for extensive free cooling, which is beneficial for data centers. These countries offer a minimum of 4,000 hours of annual free cooling, increasing the investments in air/water-side economizers and indirect evaporative coolers.
• As the enterprises across various industries are embracing artificial intelligence, data center operators are investing significantly to develop AI-ready data center facilities to meet the growing demands for AI workloads across the region. To manage the heat produced by servers in AI data centers, traditional cooling techniques are insufficient. Therefore, data center facilities will be equipped with liquid cooling techniques to support AI workloads.

Segmentation by Facility Type

• Hyperscale Data Centers
• Colocation Data Centers
• Enterprise Data Centers

Segmentation by Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation by IT Infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• Power Distribution Units
• Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Segmentation by Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers, and Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Segmentation by Cooling Techniques

• Air-based
• Liquid-based

Segmentation by General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Physical Security
• Fire Detection & Suppression
• DCIM

Segmentation by Tier Standard

• Tier I & II
• Tier III
• Tier IV

GEOGRAPHICAL ANALYSIS

• Frankfurt, London, Amsterdam, and Dublin (FLAP-D) data center markets are among the leading data center markets in Europe. However, the dominance of these markets in the Europe data center market is expected to be reduced due to the land availability constraints. Data center companies are preferring emerging locations such as Spain, Italy, Portugal, and Greece for the development of their data center operators.
• In the Nordic region, countries including Sweden, Norway, and Finland are increasingly attracting data center investments driven by their cool climate, abundant renewable energy, such as hydropower, wind, and geothermal energy, and government incentives.
• Hyperscale companies such as Google, Meta, and Microsoft are developing sustainable and large-scale hyperscale data center facilities, especially in Nordic and Western European countries. Colocation companies are also contributing significantly to increasing the investments in the Europe data center market by adopting sustainable data center practices such as integrating renewable energy, replacing diesel generators with HVO, and implementing advanced liquid cooling techniques.
• In Central & Eastern Europe, Russia has established itself as a key data center hub. Other countries, such as Poland, Austria, and Czechia, are also becoming emerging locations, attracting data center operators, and tech giants such as Google, Meta, and Microsoft are also expanding their operations across these countries. Other countries such as Hungary, Estonia, Slovakia, Bulgaria, and Croatia have witnessed small investments in recent years.
• In Italy, Milan is the major data center hub, which benefits from its central location, connecting with Southern Europe. The smaller data center markets, such as Rome and Turin, are emerging as growing data center locations due to their favorable business environments.
• The political neutrality, data protection regulations, and proximity to key European markets enhance Switzerland’s attractiveness to data center operators, with Zurich and Geneva serving as the main data center hubs offering high security and reliability.
• The locations, including Marseille and Lyon, are gaining significance in France as an alternative to Paris due to their land availability and affordable electricity prices.

Segmentation by Geography

• Western Europe
• UK
• Germany
• France
• Netherlands
• Ireland
• Switzerland
• Italy
• Spain
• Belgium
• Portugal
• Greece
• Other Western European Countries
• Nordic
• Sweden
• Norway
• Denmark
• Finland
• Iceland
• Central and Eastern Europe
• Russia
• Poland
• Austria
• Czechia
• Other Central & Eastern European Countries

EUROPE DATA CENTER MARKET VENDOR LANDSCAPE

• The Europe data center market consists of all the leading global and local colocation operators, including Equinix, Digital Realty, CyrusOne, DataBank, Iron Mountain, Green Mountain, Vantage Data Centers, Aruba S.p.A., NTT DATA, Telehouse, VIRTUS Data Centres, and STACK Infrastructure.
• The growing demand for data centers will create substantial opportunities for construction contractors in the forecast period. Significant contractors operating in Europe data center market include AECOM, Arup, Astron Buildings, DPR Construction, HDR Architecture,Artelia, Coromatic AB, Ferrovial, YIT, Turner & Townsend, TTSP, Mercury, and Bouygues Construction.
• The Europe data center market includes numerous global and local support infrastructure providers such as 3M, ABB, AERMEC, Airedale, Aksa Power Generation, Baudouin, Carrier, Caterpillar, Cummins, Delta Electronics, Eaton, EMICON, HITEC Power Protection, Honeywell, Johnson Controls, Rehlko, Legrand, Mitsubishi Electric, Munters, Perkins Engine, Pillar Power Systems, Riello Elettronica, Rittal, Rolls-Royce, Schneider Electric, Siemens, STULZ, Trane Technologies and Vertiv.
• Key hyperscale operators investing in the Europe data center market include Amazon Web Services (AWS), Microsoft, Meta (Facebook), and Google. They are expanding their operations across major data center hubs throughout Europe.
• The Europe data center market has seen the entry of several new players, including Blue, Bluestar Datacenter, CloudHQ, dataR, DATA CASTLE, Apto Data Centers, DATA for MED, Form8tion Data Centers, and EDGNEX Data Centers by DAMAC. The arrival of these new entrants could disrupt the market share of existing companies, increasing the competition in the market.
• Companies such as Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Extreme Networks, Fujitsu, Hewlett Packard Enterprise, Hitachi Vantara, Huawei Technologies, IBM, Inspur Group, Lenovo, MiTAC Holdings, NEC Corporation, NetApp, Pure Storage, Supermicro, Wiwynn and Quanta Cloud Technology offers IT infrastructure solutions for data centers.
• The competition in the Europe data center market among infrastructure providers and construction contractors is expected to increase significantly in the forecast period, with data center operators' investments in the development of sustainable and advanced data center facilities.

IT Infrastructure Providers

• Arista Networks
• Atos
• Broadcom
• Cisco Systems
• Dell Technologies
• Extreme Networks
• Fujitsu
• Hewlett Packard Enterprise (HPE)
• Hitachi Vantara
• Huawei Technologies
• IBM
• Inspur Group
• Lenovo
• MiTAC Holdings
• NEC Corporation
• NetApp
• Pure Storage
• Quanta Cloud Technology
• Supermicro
• Wiwynn

Prominent Support Infrastructure Providers

• 3M
• ABB
• AERMEC
• Airedale
• Aksa Power Generation
• Alfa Laval
• AVK
• Baudouin
• Carrier
• Caterpillar
• Condair Group
• Climaveneta
• Cummins
• D’Hondt Thermal Solutions
• Daikin Applied
• Delta Electronics
• EATON
• EBM-PAPST
• EMICON
• Enrogen
• FläktGroup
• Grundfos
• Guntner
• GESAB
• HiRef S.p.A
• HITEC Power Protection
• Honeywell
• INNIO
• JAEGGI Hybridtechnologie
• Johnson Controls
• Rehlko
• KyotoCooling
• Legrand
• Mitsubishi Electric
• Munters
• NetNordic Group AS
• Nlyte Software
• Perkins Engine
• Pillar Power Systems
• Riello Elettronica Group
• Rittal
• Rolls-Royce
• Schneider Electric
• Siemens
• Socomec Group
• STULZ
• Trane
• Vertiv
• ZIEHL-ABEGG

Prominent Data Center Construction Contractors

• ACS Group
• AECOM
• Altron
• AODC
• Abbeydale
• APL Data Center
• ARC:MC
• Ariatta
• ARSMAGNA GROUP
• Artelia
• Arup
• AtkinsRéalis
• Aurora Group
• Basler & Hoffman
• Benthem Crouwel Architects
• Bouygues Construction
• Bravida
• CapIngelec
• Caverion
• Coromatic AB
• Collen Construction
• COWI
• DataDome
• Deerns
• The Designer Group
• DIPL-ING.H.C. Hollige
• Dornan Engineering and Construction
• DPR Construction
• Engexpor
• Equans
• EIDA
• Exyte (M+W Group)
• Eiffage
• Ethos Engineering
• EYP Mission Critical Facilities
• Ferrovial
• Fluor Corporation
• Future-tech
• Generale Prefabbricati S.p.A
• Granlund Group
• Green MDC
• Gottileb 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
• Mace Group
• Mercury
• Mentor Construction
• MiCiM
• MT Hojgaard
• Nicholas Webb Architects
• Norma Engineering
• PM Group
• PORR Group
• PQC
• Quark
• Ramboll
• RED Engineering Design
• Reid Brewin Architects
• Renco
• RKD
• Rosenberger
• Royal HaskoningDHV
• Salboheds
• Skanska
• SPIE
• Starching
• STO Building Group
• STRABAG
• STS Group
• Sweco
• Techbau
• Techko
• Tetra Tech
• TPF Ingenierie
• TTSP
• Turner & Townsend
• Warbud
• Winthrop Technologies
• YIT
• ZAUNERGROUP
• HDR Architecture
• CREATE Architecture
• RWO Associates
• GSE Group

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
• CyrusOne
• Data4
• DataCenter United
• Datum
• DENV-R
• Digital Realty
• EcoData Center
• EdgeConneX
• Equinix
• Meta (Facebook)
• Global Switch
• Google
• Green Datacenter
• Green Mountain
• Iron Mountain
• IXcellerate
• K2 STRATEGIC
• Kao Data
• Keppel Data Centres
• LCL Data Center
• Linxdatacenter
• maincubes SECURE DATACENTERS
• Merlin Properties
• Microsoft
• MTS
• NTT DATA
• Penta Infra
• Pure Data Centres
• Rostelecom
• Selectel
• STACK Infrastructure
• STACKIT
• STORESPEED
• Switch Datacenters
• Telehouse
• Thésée DataCenter
• Vantage Data Centers
• VIRTUS Data Centres
• Yondr

New Entrants

• Ada Infrastructure
• Apto Data Centre
• Art Data Centres
• Atlantic Data Infrastructure
• Best Wonder Business
• Blue
• Bluestar Datacentre
• Castle IT
• Ceske Radiokommunikace
• CloudHQ
• DATA CASTLE
• dataR GmbH
• DATA for MED
• Digital Reef
• Eclairion
• EdgeNebula
• EDGNEX Data Centres by DAMAC
• Elementica
• Energia Group
• Evroc
• Form8tion Data Centres
• Global Technical Realty
• GreenScale
• Goodman
• Ingenostrum
• KEVLINX
• Keysource+Namsos DataSenter
• Lasercharm
• Latos
• Mediterra Datacenters
• Nation Data Center
• Nautilus Data Technologies
• Nehos
• Nethits’ Telecom
• OPCORE
• PGIM Real Estate
• PHOCEA DC
• Polar DC
• Prime Data Centers
• Quetta Data Centers (Azora)
• QTS Data Centers
• REMOV
• SDC Capital Partners
• SEGRO
• Serve Centric
• VITALI
• Kasi Cloud
• Kemet Data Center (Intro Technology and Oman Data Park)
• Khazna Data Centers
• Gulf Data Hub

KEY QUESTIONS ANSWERED:

1. How big is the Europe data center market?

2. What are the key trends in the Europe data center market?

3. What is the growth rate of the Europe data center market?

4. What is the estimated market size in terms of area in the Europe data center market by 2030?

5. How many MW of power capacity is expected to reach the Europe data center market by 2030?