Dublin, May 26, 2025 (GLOBE NEWSWIRE) -- The "Europe Data Center Market - Europe Data Center Industry Analysis, Size, Share, Growth, Trends, and Forecast 2025-2032 - (By Component, Data Center Type, Data Center Tier, Industry, Geographic Coverage and By Company)" has been added to ResearchAndMarkets.com's offering.
The European data center market is on the brink of significant expansion, forecasted to expand to US$ 189.3 billion by 2032, up from US$ 82.8 billion in 2025. This growth is driven by rapid digital transformation, heightened cloud computing adoption, and the burgeoning demand for data-intensive technologies such as AI and 5G. According to the latest research, the market is expected to see a strong CAGR of 12.6% during this period.
Market Insights
The increasing need for data generation and processing is transforming Europe's digital infrastructure. Companies are heavily investing in scalable, high-performance data centers to meet the needs of computing, analytics, and cloud services. A focus on Tier-3 data centers, projected to represent over half of the market revenue by 2025, highlights the growing importance of reliability and minimal downtime.
Sustainability is crucial, with operators turning to renewable energy solutions and efficient cooling systems to comply with strict environmental standards. The EU's goal of a climate-neutral infrastructure by 2030 continues to shape data center operations across the region.
Key Market Drivers
Exponential data consumption, especially in video streaming, is a primary market driver. By 2024, video streaming accounted for two-thirds of global mobile data traffic, with Europe at the forefront of HD and 4K usage. Internet penetration in the EU has reached 94% in 2024, up from 80% a decade earlier, further bolstering market growth.
The adoption of cloud and AI technologies is accelerating. With over 50% of EU enterprises leveraging high-speed internet and cloud solutions, and AI integration in over 13% of businesses, the digital economy is poised to reach €829 billion by 2025, demanding substantial data center infrastructure investments.
Business Opportunities
Growth opportunities lie in developing hyperscale and megascale data centers. Dublin, Amsterdam, Frankfurt, London, and Paris are major contributors, expected to account for over half of the new data center capacity pegged at 937 MW in 2025.
Government efforts further propel growth. The UK has earmarked £14 billion for AI data centers, while the EU's €20 billion InvestAI program supports infrastructure expansion. France's AI sector, backed by €109 billion, underscores a strategic focus on these technologies.
Renewable energy integration is also trending, with the EU aiming for 45% renewable energy by 2030. In 2024, nearly half of electricity generation was renewable, prompting data centers to adopt clean energy sources, aided by initiatives like the Climate Neutral Data Centre Pact and REPowerEU policies.
Regional Analysis
Germany leads in digital infrastructure investments, supported by strong data sovereignty regulations and environmental commitments. The UK follows closely, driven by digital transformation and cloud adoption, reflected in US$ 32 billion investments since 2024.
The Nordics enjoy robust data center growth, thanks to favorable energy policies and renewable resources. Microsoft's US$33.7 billion investment in Sweden is a testament to the region's digital potential.
Competitive Landscape
Recent developments underscore a market in motion. IBM launched its first quantum data center in Europe in October 2024, located in Ehningen, Germany. In April 2025, Colt Technology Services sold eight European data centers to NorthC to refocus on AI and sustainable infrastructure, further reshaping the competitive landscape.
Several global and regional players are capitalizing on the booming demand for data center infrastructure in Europe. These include:
- Google LLC
- Equinix Inc.
- IBM Corporation
- Microsoft Corporation
- Cisco Systems, Inc.
- Dell Technologies
- Schneider Electric
- Hewlett Packard Enterprise
- Huawei Technologies Co., Ltd
- Fujitsu Limited
- ABB
- Comarch SA
Segmentation
By Component:
- Hardware
- Power Systems
- Cooling Systems
- Data Center Racks
- Miscellaneous
- DCIM (Data Center Infrastructure Management) Software
- Cloud-based
- On-premises
- Services
- Professional Services
- Integration & Implementation
- Consulting
- Support & Maintenance
- Managed Services
By Data Center Type:
- Enterprise Data Centers
- Edge Data Centers
- Colocation Data Centers
- Hyperscale Data Centers
- Cloud Data Centers
- Managed Data Centers
- Modular Data Centers
By Data Center Tier:
- Tier-1 Data Center
- Tier-2 Data Center
- Tier-3 Data Center
- Tier-4 Data Center
By Industry:
- IT & Telecom
- BFSI
- Manufacturing
- Healthcare
- Government
- Miscellaneous
By Country:
- Germany
- UK
- France
- Italy
- Spain
- Benelux
- Nordics
- Rest of Europe
For more information about this report visit https://www.researchandmarkets.com/r/84m58g
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