Europe Data Center Equipment Market Size and Forecast (2021-2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Equipment Type [Servers, Storage Devices, Cooling Equipment, Power Distribution Units (PDUs), Racks, Enclosures,

The Europe data center equipment market is projected to grow significantly, reaching approximately US$ 173,134.51 million by 2031, up from US$ 63,235.19 million in 2024. This growth represents a compound annual growth rate (CAGR) of 15.6% from 2025 to 2031, driven by the increasing demand for digital services and advanced computing solutions across the continent.

Executive Summary and Market Analysis

The market is primarily segmented into key countries including Germany, France, the UK, Italy, Russia, and the Rest of Europe. As the backbone of Europe’s digital economy, data centers are experiencing unprecedented growth due to the surge in internet users and a 25-fold increase in global internet traffic since 2010, as reported by the International Energy Agency in 2023. The rise of technologies such as artificial intelligence (AI) is further intensifying the need for advanced computing capabilities, prompting European data center hubs to expand their storage, processing, and computing power.

A notable example of this trend is Brookfield Asset Management's announcement in February 2025 to invest US$ 20.7 billion in developing data centers and AI infrastructure in France over the next five years, highlighting the competitive race to lead in AI technology. Additionally, in January 2025, the Hertsmere Borough Council approved a planning application for DC01UK's new data center, which is set to become Europe’s largest cloud and AI data center, featuring up to two million square feet of space. This facility aims to address the existing cloud shortfall and meet the anticipated surge in demand for data services in the coming years.

The increasing reliance on AI necessitates substantial computing resources for tasks such as training machine learning models and processing large datasets, which in turn drives the demand for data center equipment. A new Government Data Centre, supported by approximately US$ 40 million in grant funding, is also under development at the Backweston Campus. This facility aims to be at least twice as efficient as current public service data centers and will operate sustainably, including the reuse of waste heat for other buildings. The completion of this project is expected by December 2025, further stimulating demand for advanced data center equipment, including energy-efficient servers and cooling systems.

Strategic Insights

Market Segmentation

The Europe data center equipment market can be segmented by equipment type and tier type. By equipment type, the market includes servers, storage devices, cooling equipment, power distribution units (PDUs), racks, enclosures, and others. In 2024, the servers segment held the largest market share. By tier type, the market is divided into tier 3, tier 4, tier 1, and tier 2, with tier 3 also holding the largest share in 2024.

Market Outlook

Various industries are increasingly adopting high-performance computing (HPC), big data analytics, AI, and machine learning to enhance customer experiences and improve cybersecurity. The deployment of these technologies requires robust infrastructure capable of managing complex workloads. The rise of computer-intensive tasks, particularly in AI model training, is driving the evolution of hardware to meet these demands. This has led to the development of new equipment with higher thermal design power and advanced networking capabilities, as well as more efficient cooling and power solutions.

For instance, in April 2025, Dell Technologies launched a suite of infrastructure advancements across its server, storage, and data protection portfolios, aimed at modernizing data centers for the AI era. Similarly, Amazon Web Services announced new data center components in December 2024 to support the next generation of AI innovation, focusing on energy efficiency and advanced hardware design. In October 2024, Huawei Digital Power showcased a comprehensive data center solution that included innovative cooling and power supply technologies, further illustrating the trend towards energy-efficient and high-performance data center equipment.

Country Insights

The market is also analyzed by country, with Germany leading in market share in 2024. The German Datacenter Association plays a pivotal role in promoting collaboration among operators, enhancing visibility, and attracting investments to the sector. Germany's focus on quantum technologies, particularly in Bavaria, is driving demand for advanced data center infrastructure. For example, IQM Quantum Computers announced the opening of its first quantum data center in Munich in June 2024, which will support industry applications and further boost the demand for specialized data center equipment.

Company Profiles

Key players in the Europe data center equipment market include ABB Ltd, Legrand SA, Schneider Electric SE, Rittal GmbH and Co KG, Eaton Corp Plc, Dell Technologies Inc, Honeywell International Inc, Vertiv Group Corp., Delta Electronics Inc, and Cisco Systems Inc. These companies are employing various strategies such as expansion, product innovation, and mergers and acquisitions to enhance their market presence and offer innovative solutions to their customers.

In summary, the Europe data center equipment market is poised for substantial growth, driven by the increasing demand for advanced computing solutions and the expansion of digital services across the region. Show more