
Europe AI Server Market Size, Share & Industry Analysis Report By Processor Type (GPU-based Servers, FPGA-based Servers, and ASIC-based Servers), By Cooling Technology (Air Cooling, Liquid Cooling, and Hybrid Cooling), By Form Factor (Rack-mounted Servers
Description
The Europe AI Server Market would witness market growth of 36.9% CAGR during the forecast period (2025-2032).
The Germany market dominated the Europe AI Server Market by Country in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $92,910.3 million by 2032. The UK market is exhibiting a CAGR of 35.7% during (2025 - 2032). Additionally, The France market would experience a CAGR of 38% during (2025 - 2032).
The AI server market in Europe has evolved rapidly in response to growing digitalization demands, policy backing, and strategic investments across the continent. Historically, Europe lagged behind North America and Asia in terms of AI infrastructure, primarily due to limited computational power and fragmented digital ecosystems. However, the region has taken decisive steps to bridge this gap. With initiatives from the European Commission focused on digital sovereignty and technological autonomy, Europe has prioritized the development of local AI capabilities
One of the most significant transformations came with the EU’s investment strategy that includes the creation of AI supercomputing “gigafactories.” These facilities are intended to house over 100,000 high-performance processors capable of supporting large-scale AI workloads in areas such as healthcare, robotics, and fundamental scientific research. This move underscores Europe's commitment to developing homegrown infrastructure that can reduce dependency on non-EU hardware and software. In tandem with governmental efforts, tech companies operating in Europe have contributed to the evolution of the AI server landscape.
Europe Market Trends:
Europe is emerging as a strategic hub for AI server infrastructure, driven by policy-backed digital transformation, sovereign compute ambitions, and investments by global hyperscalers and European data center operators. The region’s push for ethical, secure, and sustainable AI has led to substantial developments in AI data centers, customized AI hardware, and regulatory innovation.
1. Policy-driven Investments in AI Infrastructure
The European Union and member states are actively promoting AI development through robust funding and infrastructure strategies:
The European Commission has identified AI as a pillar of digital sovereignty, with goals to mobilize €20 billion in AI investments per year.
Under the Digital Europe Programme, the EU is co-financing High Performance Computing (HPC) and AI server farms for public sector use cases, including healthcare, energy, and climate forecasting.
Germany and France have national AI strategies focusing on compute resources, including the development of national supercomputing AI centers.
Italy’s PNRR (Recovery Plan) allocates funding for AI research and infrastructure, including AI servers deployed in public universities and tech parks.
These policy mechanisms reflect Europe's ambition to create a secure and competitive AI compute backbone.
2. Rise of Sovereign AI Compute and Ethical AI Hosting
Amid growing concerns over reliance on non-EU cloud infrastructure, European governments and enterprises are seeking sovereign AI compute solutions:
The Gaia-X initiative—supported by Germany and France—aims to build a federated data and infrastructure ecosystem that ensures data ownership, localization, and transparency. AI server infrastructure under Gaia-X must comply with European data protection laws (GDPR).
Countries such as France and Italy are promoting national AI clouds to train and host sensitive data models using locally hosted AI servers.
This drive is leading to the procurement of high-performance AI server clusters built by European OEMs like Atos and Eviden, or via secure partnerships with international vendors.
State of Competition in the Europe AI Server Market
The AI server market in Europe is increasingly competitive, shaped by regional sovereignty ambitions, sustainability mandates, and public-private infrastructure partnerships. Unlike the hyperscaler-driven dynamics in the U.S., Europe’s AI server ecosystem is more diversified, with a strong presence of European OEMs, national initiatives for secure and localized computing, and growing investments by international cloud providers adapting to the continent’s unique regulatory and energy landscape.
Strategic Sovereignty and the Gaia-X Movement
At the core of Europe’s AI server competitiveness is the Gaia-X initiative—an EU-backed framework that promotes a federated, secure, and sovereign digital infrastructure. This has led to:
European OEMs are leveraging the demand for sovereign and sustainable AI compute by developing specialized AI server platforms:
Processor Type Outlook
Based on the Processor Type, the AI server market is segmented into GPU-based, FPGA-based, and ASIC-based servers. The GPU-Based Servers held the largest market share among all the processor types in 2024 followed by FPGA-based Servers.
1. GPU-Based Servers
Trend: European initiatives to enhance AI infrastructure using GPU-based servers, focusing on sovereignty and reducing reliance on non-European technologies.
Trend: Utilization of FPGA-based servers in Europe's telecommunications and automotive sectors for customizable and efficient AI processing.
Based on Cooling Technology, the market is segmented into Air Cooling, Liquid Cooling, and Hybrid Cooling.
Air Cooling
Trend:
Air cooling remains a foundational method for thermal management in European data centers, utilizing techniques like hot/cold aisle containment and computer room air conditioning (CRAC) units.
To Illustrate:
Trend:
Liquid cooling, including direct-to-chip and immersion methods, is gaining traction for its efficiency in managing high-density computing environments.
To illustrate:
Based on Form Factor, the Europe AI Server Market is segmented into Rack-mounted servers, Blade Servers, and Tower servers segment. The Rack mounted server segment garnered the highest revenue share among others in 2024 in Europe AI Server Market.
Rack-Mounted Servers
Trend:
Rack-mounted servers are widely adopted in Europe due to their scalability and efficient space utilization, making them ideal for data centers and enterprise environments.
To illustrate:
Trend:
Blade servers are gaining traction in Europe, particularly in environments requiring high-density computing and efficient resource utilization, such as virtualization and cloud computing.
To illustrate:
Based on the End Use, the Europe AI Server Market is segmented into IT & Telecommunication, BFSI, Retail & E-commerce, Healthcare & Pharmaceutical, Automotive and Other End Use. The IT & Telecommunication segment garnered the largest revenue share in Europe market followed by BFSI and Retail & E-commerce among all other end use verticals.
IT & Telecommunication
Trend:
European telecom providers are rapidly integrating AI to enhance network operations, customer service, and infrastructure management. Companies like Orange, Telefónica, and Telenor are partnering with AI leaders to develop self-optimizing networks and AI-driven solutions.
To illustrate:
Trend:
The BFSI sector in Europe is leveraging AI for fraud detection, personalized services, and operational efficiency. Financial institutions are investing in AI to transform their services and customer interactions.
To illustrate:
List of Key Companies Profiled
By Processor Type
The Germany market dominated the Europe AI Server Market by Country in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $92,910.3 million by 2032. The UK market is exhibiting a CAGR of 35.7% during (2025 - 2032). Additionally, The France market would experience a CAGR of 38% during (2025 - 2032).
The AI server market in Europe has evolved rapidly in response to growing digitalization demands, policy backing, and strategic investments across the continent. Historically, Europe lagged behind North America and Asia in terms of AI infrastructure, primarily due to limited computational power and fragmented digital ecosystems. However, the region has taken decisive steps to bridge this gap. With initiatives from the European Commission focused on digital sovereignty and technological autonomy, Europe has prioritized the development of local AI capabilities
One of the most significant transformations came with the EU’s investment strategy that includes the creation of AI supercomputing “gigafactories.” These facilities are intended to house over 100,000 high-performance processors capable of supporting large-scale AI workloads in areas such as healthcare, robotics, and fundamental scientific research. This move underscores Europe's commitment to developing homegrown infrastructure that can reduce dependency on non-EU hardware and software. In tandem with governmental efforts, tech companies operating in Europe have contributed to the evolution of the AI server landscape.
Europe Market Trends:
Europe is emerging as a strategic hub for AI server infrastructure, driven by policy-backed digital transformation, sovereign compute ambitions, and investments by global hyperscalers and European data center operators. The region’s push for ethical, secure, and sustainable AI has led to substantial developments in AI data centers, customized AI hardware, and regulatory innovation.
1. Policy-driven Investments in AI Infrastructure
The European Union and member states are actively promoting AI development through robust funding and infrastructure strategies:
The European Commission has identified AI as a pillar of digital sovereignty, with goals to mobilize €20 billion in AI investments per year.
Under the Digital Europe Programme, the EU is co-financing High Performance Computing (HPC) and AI server farms for public sector use cases, including healthcare, energy, and climate forecasting.
Germany and France have national AI strategies focusing on compute resources, including the development of national supercomputing AI centers.
Italy’s PNRR (Recovery Plan) allocates funding for AI research and infrastructure, including AI servers deployed in public universities and tech parks.
These policy mechanisms reflect Europe's ambition to create a secure and competitive AI compute backbone.
2. Rise of Sovereign AI Compute and Ethical AI Hosting
Amid growing concerns over reliance on non-EU cloud infrastructure, European governments and enterprises are seeking sovereign AI compute solutions:
The Gaia-X initiative—supported by Germany and France—aims to build a federated data and infrastructure ecosystem that ensures data ownership, localization, and transparency. AI server infrastructure under Gaia-X must comply with European data protection laws (GDPR).
Countries such as France and Italy are promoting national AI clouds to train and host sensitive data models using locally hosted AI servers.
This drive is leading to the procurement of high-performance AI server clusters built by European OEMs like Atos and Eviden, or via secure partnerships with international vendors.
State of Competition in the Europe AI Server Market
The AI server market in Europe is increasingly competitive, shaped by regional sovereignty ambitions, sustainability mandates, and public-private infrastructure partnerships. Unlike the hyperscaler-driven dynamics in the U.S., Europe’s AI server ecosystem is more diversified, with a strong presence of European OEMs, national initiatives for secure and localized computing, and growing investments by international cloud providers adapting to the continent’s unique regulatory and energy landscape.
Strategic Sovereignty and the Gaia-X Movement
At the core of Europe’s AI server competitiveness is the Gaia-X initiative—an EU-backed framework that promotes a federated, secure, and sovereign digital infrastructure. This has led to:
- Increased demand for locally-hosted AI servers that comply with GDPR and digital sovereignty principles.
- Encouragement for European providers like Eviden (Atos), OVHcloud, and T-Systems to compete with global hyperscalers by offering AI infrastructure within European borders.
- This has shifted procurement dynamics in favor of regional server vendors and fostered investment in EU-based AI chip and server development.
European OEMs are leveraging the demand for sovereign and sustainable AI compute by developing specialized AI server platforms:
- Eviden, part of the Atos Group, supplies energy-efficient AI server systems tailored for scientific computing, public sector workloads, and national defense.
- SiPearl, a French startup, is developing Europe’s first HPC-grade AI processor ("Rhea") to power future exascale supercomputers and AI training systems.
- Infineon Technologies and STMicroelectronics are playing supporting roles in the semiconductor stack for AI edge servers and inference systems.
Processor Type Outlook
Based on the Processor Type, the AI server market is segmented into GPU-based, FPGA-based, and ASIC-based servers. The GPU-Based Servers held the largest market share among all the processor types in 2024 followed by FPGA-based Servers.
1. GPU-Based Servers
Trend: European initiatives to enhance AI infrastructure using GPU-based servers, focusing on sovereignty and reducing reliance on non-European technologies.
- NVIDIA's Sovereign AI Initiatives in Europe: NVIDIA CEO Jensen Huang's advocacy for "sovereign AI" is gaining momentum in Europe, with plans to build AI data centers powered by NVIDIA GPUs to bolster the continent's AI infrastructure.
Trend: Utilization of FPGA-based servers in Europe's telecommunications and automotive sectors for customizable and efficient AI processing.
- Vodafone and AMD's 5G Infrastructure Development: Vodafone is collaborating with AMD to develop next-generation mobile base stations using AMD's Zynq UltraScale+ RFSoC devices, aiming to enhance 5G infrastructure efficiency.
Based on Cooling Technology, the market is segmented into Air Cooling, Liquid Cooling, and Hybrid Cooling.
Air Cooling
Trend:
Air cooling remains a foundational method for thermal management in European data centers, utilizing techniques like hot/cold aisle containment and computer room air conditioning (CRAC) units.
To Illustrate:
- In July 2022, record high temperatures in the UK led to critical failures at Google Cloud and Oracle data centers in London, causing significant outages impacting users in other regions such as the US and Pacific. This incident underscores the growing vulnerability of data centers to climate change.
Trend:
Liquid cooling, including direct-to-chip and immersion methods, is gaining traction for its efficiency in managing high-density computing environments.
To illustrate:
- Schneider Electric announced on Thursday it will acquire a 75% stake in U.S.-based Motivair Corp, a specialist in liquid cooling for high-performance computing, for $850 million in cash. The deal will bolster Schneider's capabilities in data center cooling, essential for accommodating the rising demand spurred by generative-AI and large language models which necessitate more efficient cooling solutions than traditional air cooling.
Based on Form Factor, the Europe AI Server Market is segmented into Rack-mounted servers, Blade Servers, and Tower servers segment. The Rack mounted server segment garnered the highest revenue share among others in 2024 in Europe AI Server Market.
Rack-Mounted Servers
Trend:
Rack-mounted servers are widely adopted in Europe due to their scalability and efficient space utilization, making them ideal for data centers and enterprise environments.
To illustrate:
- Blackstone's Investment in Spain: Blackstone announced plans to invest €7.5 billion ($8.2 billion) in developing data centers in Aragon, northeastern Spain. This significant investment aims to bolster the region's growing reputation as a major cloud computing hub in Europe, indicating a substantial demand for rack-mounted server configurations.
Trend:
Blade servers are gaining traction in Europe, particularly in environments requiring high-density computing and efficient resource utilization, such as virtualization and cloud computing.
To illustrate:
- iGenius and Nvidia's AI System in Italy: Italian startup iGenius, in collaboration with Nvidia, is building one of the largest AI systems in the world at a data center in southern Italy. The project will deploy about 80 of Nvidia's powerful GB200 NVL72 servers, each containing 72 “Blackwell” chips, highlighting the increasing adoption of blade servers for AI applications.
Based on the End Use, the Europe AI Server Market is segmented into IT & Telecommunication, BFSI, Retail & E-commerce, Healthcare & Pharmaceutical, Automotive and Other End Use. The IT & Telecommunication segment garnered the largest revenue share in Europe market followed by BFSI and Retail & E-commerce among all other end use verticals.
IT & Telecommunication
Trend:
European telecom providers are rapidly integrating AI to enhance network operations, customer service, and infrastructure management. Companies like Orange, Telefónica, and Telenor are partnering with AI leaders to develop self-optimizing networks and AI-driven solutions.
To illustrate:
- Nvidia has announced partnerships with European telecom giants—Orange, Fastweb, Swisscom, Telefónica, and Telenor—to build AI infrastructure supporting the development and deployment of agentic AI applications.
Trend:
The BFSI sector in Europe is leveraging AI for fraud detection, personalized services, and operational efficiency. Financial institutions are investing in AI to transform their services and customer interactions.
To illustrate:
- The UK's Financial Conduct Authority (FCA) is launching a "supercharged sandbox" initiative to allow banks and financial firms to experiment with AI technologies developed by Nvidia. This initiative aims to support firms lacking AI capabilities and aligns with broader government goals of promoting AI adoption across sectors.
List of Key Companies Profiled
- Dell Technologies, Inc.
- Cisco Systems, Inc.
- IBM Corporation
- HP Inc.
- Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
- NVIDIA Corporation
- Fujitsu Limited
- Intel Corporation
- Microsoft Corporation
- Salesforce, Inc.
By Processor Type
- GPU-based Servers
- FPGA-based Servers
- ASIC-based Servers
- Air Cooling
- Liquid Cooling
- Hybrid Cooling
- Rack-mounted Servers
- Blade Servers
- Tower Servers
- IT & Telecommunication
- BFSI
- Retail & E-commerce
- Healthcare & Pharmaceutical
- Automotive
- Other End Use
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
Table of Contents
207 Pages
- Chapter 1. Market Scope & Methodology
- 1.1 Market Definition
- 1.2 Objectives
- 1.3 Market Scope
- 1.4 Segmentation
- 1.4.1 Europe AI Server Market, by Processor Type
- 1.4.2 Europe AI Server Market, by Cooling Technology
- 1.4.3 Europe AI Server Market, by Form Factor
- 1.4.4 Europe AI Server Market, by End Use
- 1.4.5 Europe AI Server Market, by Country
- 1.5 Methodology for the research
- Chapter 2. Market at a Glance
- 2.1 Key Highlights
- Chapter 3. Market Overview
- 3.1 Introduction
- 3.1.1 Overview
- 3.1.1.1 Market Composition and Scenario
- 3.2 Key Factors Impacting the Market
- 3.2.1 Market Drivers
- 3.2.1 Market Restraints
- 3.2.2 Market Opportunities
- 3.2.3 Market Challenges
- Chapter 4. Europe Market Trends
- Chapter 5. State of Competition in the Europe AI Server Market
- Chapter 6. AI Server Market - Consolidation Analysis
- Chapter 7. Product Life Cycle Analysis: AI Server Market
- Chapter 8. Competition Analysis - Global
- 8.1 KBV Cardinal Matrix
- 8.2 Recent Industry Wide Strategic Developments
- 8.2.1 Partnerships, Collaborations and Agreements
- 8.2.2 Product Launches and Product Expansions
- 8.2.3 Acquisition and Mergers
- 8.3 Market Share Analysis, 2024
- 8.4 Top Winning Strategies
- 8.4.1 Key Leading Strategies: Percentage Distribution (2021-2025)
- 8.4.2 Key Strategic Move: (Partnerships, Collaborations & Agreements: 2024, Mar – 2025, May) Leading Players
- 8.5 Porter Five Forces Analysis
- Chapter 9. Value Chain Analysis of AI Server Market
- Chapter 10. Key Customer Criteria: AI Server Market
- 10.1 Performance and Compute Capability
- 10.2 Scalability and Density Optimization
- 10.3 Hybrid Cloud and Edge Integration
- 10.4 Vendor Ecosystem and Support
- Chapter 11. Europe AI Server Market by Processor Type
- 11.1 Europe GPU-based Servers Market by Country
- 11.2 Europe FPGA-based Servers Market by Country
- 11.3 Europe ASIC-based Servers Market by Country
- Chapter 12. Europe AI Server Market by Cooling Technology
- 12.1 Europe Air Cooling Market by Country
- 12.2 Europe Liquid Cooling Market by Country
- 12.3 Europe Hybrid Cooling Market by Country
- Chapter 13. Europe AI Server Market by Form Factor
- 13.1 Europe Rack-mounted Servers Market by Country
- 13.2 Europe Blade Servers Market by Country
- 13.3 Europe Tower Servers Market by Country
- Chapter 14. Europe AI Server Market by End Use
- 14.1 Europe IT & Telecommunication Market by Country
- 14.2 Europe BFSI Market by Country
- 14.3 Europe Retail & E-commerce Market by Country
- 14.4 Europe Healthcare & Pharmaceutical Market by Country
- 14.5 Europe Automotive Market by Country
- 14.6 Europe Other End Use Market by Country
- Chapter 15. Europe AI Server Market by Country
- 15.1 Germany AI Server Market
- 15.1.1 Germany AI Server Market by Processor Type
- 15.1.2 Germany AI Server Market by Cooling Technology
- 15.1.3 Germany AI Server Market by Form Factor
- 15.1.4 Germany AI Server Market by End Use
- 15.2 UK AI Server Market
- 15.2.1 UK AI Server Market by Processor Type
- 15.2.2 UK AI Server Market by Cooling Technology
- 15.2.3 UK AI Server Market by Form Factor
- 15.2.4 UK AI Server Market by End Use
- 15.3 France AI Server Market
- 15.3.1 France AI Server Market by Processor Type
- 15.3.2 France AI Server Market by Cooling Technology
- 15.3.3 France AI Server Market by Form Factor
- 15.3.4 France AI Server Market by End Use
- 15.4 Russia AI Server Market
- 15.4.1 Russia AI Server Market by Processor Type
- 15.4.2 Russia AI Server Market by Cooling Technology
- 15.4.3 Russia AI Server Market by Form Factor
- 15.4.4 Russia AI Server Market by End Use
- 15.5 Spain AI Server Market
- 15.5.1 Spain AI Server Market by Processor Type
- 15.5.2 Spain AI Server Market by Cooling Technology
- 15.5.3 Spain AI Server Market by Form Factor
- 15.5.4 Spain AI Server Market by End Use
- 15.6 Italy AI Server Market
- 15.6.1 Italy AI Server Market by Processor Type
- 15.6.2 Italy AI Server Market by Cooling Technology
- 15.6.3 Italy AI Server Market by Form Factor
- 15.6.4 Italy AI Server Market by End Use
- 15.7 Rest of Europe AI Server Market
- 15.7.1 Rest of Europe AI Server Market by Processor Type
- 15.7.2 Rest of Europe AI Server Market by Cooling Technology
- 15.7.3 Rest of Europe AI Server Market by Form Factor
- 15.7.4 Rest of Europe AI Server Market by End Use
- Chapter 16. Company Profiles
- 16.1 Dell Technologies, Inc.
- 16.1.1 Company Overview
- 16.1.2 Financial Analysis
- 16.1.3 Segmental and Regional Analysis
- 16.1.4 Research & Development Expense
- 16.1.5 Recent strategies and developments:
- 16.1.5.1 Partnerships, Collaborations, and Agreements:
- 16.1.6 SWOT Analysis
- 16.2 Cisco Systems, Inc.
- 16.2.1 Company Overview
- 16.2.2 Financial Analysis
- 16.2.3 Regional Analysis
- 16.2.4 Research & Development Expense
- 16.2.5 Recent strategies and developments:
- 16.2.5.1 Partnerships, Collaborations, and Agreements:
- 16.2.5.2 Product Launches and Product Expansions:
- 16.2.6 SWOT Analysis
- 16.3 IBM Corporation
- 16.3.1 Company Overview
- 16.3.2 Financial Analysis
- 16.3.3 Regional & Segmental Analysis
- 16.3.4 Research & Development Expenses
- 16.3.5 Recent strategies and developments:
- 16.3.5.1 Product Launches and Product Expansions:
- 16.3.6 SWOT Analysis
- 16.4 HP, Inc.
- 16.4.1 Company Overview
- 16.4.2 Financial Analysis
- 16.4.3 Segmental and Regional Analysis
- 16.4.4 Research & Development Expense
- 16.4.5 Recent strategies and developments:
- 16.4.5.1 Partnerships, Collaborations, and Agreements:
- 16.4.5.2 Acquisition and Mergers:
- 16.4.6 SWOT Analysis
- 16.5 Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
- 16.5.1 Company Overview
- 16.5.2 Financial Analysis
- 16.5.3 Segmental and Regional Analysis
- 16.5.4 Research & Development Expenses
- 16.5.5 Recent strategies and developments:
- 16.5.5.1 Product Launches and Product Expansions:
- 16.5.6 SWOT Analysis
- 16.6 NVIDIA Corporation
- 16.6.1 Company Overview
- 16.6.2 Financial Analysis
- 16.6.3 Segmental and Regional Analysis
- 16.6.4 Research & Development Expenses
- 16.6.5 Recent strategies and developments:
- 16.6.5.1 Partnerships, Collaborations, and Agreements:
- 16.6.5.2 Product Launches and Product Expansions:
- 16.6.6 SWOT Analysis
- 16.7 Fujitsu Limited
- 16.7.1 Company Overview
- 16.7.2 Financial Analysis
- 16.7.3 Segmental and Regional Analysis
- 16.7.4 Research & Development Expenses
- 16.7.5 Recent strategies and developments:
- 16.7.5.1 Partnerships, Collaborations, and Agreements:
- 16.7.6 SWOT Analysis
- 16.8 Intel Corporation
- 16.8.1 Company Overview
- 16.8.2 Financial Analysis
- 16.8.3 Segmental and Regional Analysis
- 16.8.4 Research & Development Expenses
- 16.8.5 Recent strategies and developments:
- 16.8.5.1 Product Launches and Product Expansions:
- 16.8.6 SWOT Analysis
- 16.9 Microsoft Corporation
- 16.9.1 Company Overview
- 16.9.2 Financial Analysis
- 16.9.3 Segmental and Regional Analysis
- 16.9.4 Research & Development Expenses
- 16.9.5 Recent strategies and developments:
- 16.9.5.1 Partnerships, Collaborations, and Agreements:
- 16.9.6 SWOT Analysis
- 16.10. Salesforce, Inc.
- 16.10.1 Company Overview
- 16.10.2 Financial Analysis
- 16.10.3 Regional Analysis
- 16.10.4 Research & Development Expenses
- 16.10.5 Recent strategies and developments:
- 16.10.5.1 Acquisition and Mergers:
- 16.10.6 SWOT Analysis
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