Europe Hyperscale Data Center Market - Industry Outlook & Forecast 2023-2028

Europe Hyperscale Data Center Market - Industry Outlook & Forecast 2023-2028
The Europe hyperscale data center market is expected to grow at a CAGR of 5.72% from 2022 to 2028.

KEY HIGHLIGHTSPost-COVID rapid digitalization and GDPR have accelerated the development of hyperscale facilities across Europe.Major operators are looking to source renewable energy, and the Europe hyperscale data center market has taken the lead in the form of various initiatives, therefore, attracting major global data center developers to construct hyperscale facilities.Climate Neutral Data Center Pact has played a major role in increasing the sustainability of European data centers, as all the signatories will be relying on renewable energy for their facilities by 2030.As of October 2022, over 100 companies have signed the Climate Neutral Data Center Pact, which operates more than 90% of data center capacity across Europe.Western Europe and the Nordics are the two most favored regions for developing hyperscale facilities in the Europe hyperscale data center market. The availability of free and air-based cooling across these two regions gives the additional advantage of reducing power consumption to facilities.KEY TRENDS

High Adoption of Artificial IntelligenceArtificial intelligence is making inroads across Europe. Governments and businesses are taking multiple initiatives to implement and utilize the potential of artificial intelligence.Countries like Germany, the U.K., and many others have already developed national strategies for AI, and few other countries are taking concrete steps to deploy AI.I. Spain launched AI regulatory sandbox in June 2022

II. Portugal has launched an AI-based i4.0 program to improve the technology environment in the country.

Sustainability Initiatives Attracting Data Center OperatorsEuropean Union is continuously working towards making energy consumption completely green with new laws and regulations.Countries like U.K., France, and others have already signed Paris Agreement; therefore, it is binding on them to eliminate fossil fuel as an energy source and replace existing power capacity with renewable energy.The Climate Neutral Data Center Pact has also prompted operators to move towards 100% renewable energy by 2030.Governments across Europe are moving towards renewable energy and reducing dependence on fossil fuel-based energy sources.I. The U.K. government is moving towards 100% renewable energy by 2035.

II. Germany wants to have net-zero carbon emissions by 2060.

SEGMENTATION INSIGHTS

Electrical InfrastructureLithium-ion UPS systems, fuel cells, and natural gas generators will be in the center as operators move towards more efficient electrical infrastructure with sustainable intentions.I. AWS will use HVO across all of its European data centers. It has already replaced diesel with HVO in Ireland facility.

II. Microsoft has partnered with Eaton, which will outfit all of Microsoft’s data centers with grid-interactive UPS.Hyperscale data center facilities increasingly use efficient electric infrastructure like medium voltage switchgear and other equipment.Segmentation by Electrical InfrastructureUPS SystemsGeneratorsTransfer Switches & SwitchgearsPDUsOther Electrical InfrastructureMechanical InfrastructureMost operators have deployed free cooling and zero-water cooling, leveraging the cold temperature of the region. Colt Data Centre Services is using free cooling most of the year in the Paris South West data center; also, the same will be used in the announced expansion of this facility.Liquid cooling is being promoted across the data centers in the Europe hyperscale data center market. Due to the increasing workload of AI and HPC across Europe, free cooling and zero-water cooling will be less efficient than liquid cooling.Segmentation by Mechanical InfrastructureCooling SystemsRacksOther Mechanical InfrastructureGeneral ConstructionIncreasing investment in hyperscale facilities will increase investment in engineering, design, and installation services the most, as operators are looking towards sustainable design in development.District heating is prevalent in Europe, where data center firms transfer heat generated from facilities to nearby offices/residential places/swimming pools, and others. Nordic is leading in terms of developing district heating with data center firms. Western Europe is also having increased investment in district heating technology.GEOGRAPHICAL ANALYSISNordic and Western Europe continuously attract hyperscale investment due to free and air-based cooling availability.In Western Europe, the FLAPD market is the center; however, operators have found Spain and Portugal as new destinations for hyperscale data center development.Segmentation by GeographyWestern EuropeThe U.K.GermanyFranceNetherlandsIrelandItalySpainOther Western European CountriesNordicsDenmarkSwedenNorwayFinlandCentral & Eastern European CountriesPolandOther Central & Eastern European CountriesKEY MARKET PARTICIPANTSMicrosoft, Google, and Meta are major investors in the Europe hyperscale data center market in terms of cloud players.Equinix, Digital Realty, Vantage Data Centers, CyrusOne, and NTT are major colocation operators in developing hyperscale facilities across the Europe hyperscale data center market.Key Data Center IT Infrastructure ProvidersArista NetworksATOSBroadcomCisco SystemsDell TechnologiesExtreme NetworksFujitsuHitachi VantaraHewlett Packard Enterprise (HPE)Huawei TechnologiesIBMINSPURJuniper NetworksLenovoMiTAC HoldingsNEC CorporationNetAppPure StorageQuanta Cloud Technology (Quanta Computer)Super Micro ComputerWistron CorporationKey Data Center Support Infrastructure Providers3MABBAiredale International Air ConditioningAermecAlfa LavalAksa Power GenerationCarrierCaterpillarCondairClimavenetaCumminsD’HONDT THERMAL SOLUTIONSDaikin AppliedDelta ElectronicsEatonebm-papstEMICON INNOVATION AND COMFORTEnrogenFlaktgroupGrundfosGüntnerGesabHiRefHITEC Power ProtectionHoneywell InternationalJohnson ControlsKohler-SDMOKyotoCoolingLegrandMitsubishi ElectricMuntersNetNordicNlyte Software (Carrier Global Corporation)Perkins EnginesPiller Power SystemsReillo Elettronica (Riello UPS)RittalRolls-RoyceSchneider ElectricSiemensSocomecSTULZTrane (Ingersoll Rand)VertivProminent Construction ContractorsAECOMAODCAEON EngineeringARC:MCAriattaARSMAGNAArteliaArupAurora GroupAtkinsBasler & HofmannBENTHEM CROUWEL ARCHITECTSBouygues ConstructionCallaghan EngineeringCAP INGELECCoromatic (E.ON)DeernsDesigner GroupDipl.-Ing. H. C. HolligeDornanDPR ConstructionEtopEYP MCFFerrovialFluor CorporationFree Technologies EngineeringFuture-techGranlund GroupGreenMDCGottlieb Paludan ArchitectsHaka MoscowICT FacilitiesIDOMIMOSISGJCA EngineeringJERLAUREKirby Group EngineeringLinesightM+W GroupMaceMercuryMetnor ConstructionMT HojgaardNicholas Webb Architects (NWA)Norma EngineeringOakmont ConstructionPM GroupPower Quality Control (PQC)QuarkRamboll GroupREDRoyal HaskoningDHVSTARCHINGSTO Building GroupSTRABAGSTS GroupSwecoTPF IngénierieTTSPTurner & TownsendWarbudWinthrop Engineering and ContractingYITZAUNERGROUPProminent Data Center InvestorsAmazon Web Services (AWS)AppleArubaatNorth (Partners Group)Colt Data Centre Services (COLT DCS)CyrusOneDATA4DigiPlex (IPI Partners)Digital RealtyEchelon Data CentresEcoDataCenterEquinixFacebook (Meta)Global SwitchGoogleGreen MountainIron Mountain (IO)IxcellerateKevlinxMicrosoftNTT Global Data CentersOrange Business ServicesRostelecom Data Centers (RTK-DC)T5 Data CentersVantage Data CentersVerne GlobalVirtus Data Centres (ST Telemedia Global Data Centres)YondrGlobal Technical RealtyStratus DC ManagementKEY QUESTIONS ANSWERED:

1. How big is the Europe hyperscale data center market?

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

3. What is the estimated market size in terms of area in the Europe hyperscale data center market by 2028?

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

5. How many MW of power capacity is expected to reach the Europe hyperscale data center market by 2028?