Europe Data Center Colocation Market

Market Introduction

The data center colocation market in Europe is segmented into Germany, France, Italy, the UK, Russia, and the Rest of Europe. New data centers initiatives are significantly contributing to the growth of Europe’s data center colocation market. For instance, in July 2020, Interxion, a provider of carrier and cloud-neutral colocation data center solutions, announced the first phase of MRS 3, its third data center in Marseille, France to enable the customers in this region to benefit from a 100% uptime service-level agreement (SLA), and thereby focusing on their core business operations rather than managing a data center. Growth in the number of hardware infrastructure suppliers that also offer cloud services, including servers, storage, and network elements is bolstering the regional market growth. Countries such as Germany, the UK, France, and Italy are shifting toward cloud services, leading to the rising establishments of data center colocation, backed by the adoption of Big Data, Industry 4.0, Internet of Things, 5G, and cloud computing. Increased levels of remote working during the pandemic have created a surge in data storage and processing requirements in the region. Soaring adoption of high-performance compute (HPC) is the major factor driving the growth of the Europe data center colocation market.

The impact of COVID-19 differed from country to country across Europe. Each country witnessed an increase in recorded cases and subsequently attracted strict and longer lockdown periods or social isolation. However, Western European countries such as Germany, France, Russia, and the UK have seen a comparatively modest decrease in their growth activities because of the strong healthcare system. The European government has made tremendous investments in incorporating technologies in its healthcare systems to help identify signs of the virus. Due to the sudden outbreak and subsequent lockdowns across Europe, the data center industry witnessed significant changes over the past year. COVID-19 surged the demand for cloud services as consumers spent most of the year working, learning, and entertaining from home like never before. In addition, companies from various industries came with more data space requirements to deploy their operations digitally on virtual space during the pandemic. The sudden spike in the demand for high storage capacity servers and data centers has disrupted the supply chain for Q1 and Q2 of 2020; however, in Q3 of the same year, the market recovered from this problem. Thus, owing to the aforementioned factors the data center colocation market is expected to proliferate during the forecast period.

Market Overview and Dynamics

The data center colocation market in Europe is expected to grow from US$ 11,407.07 million in 2021 to US$ 33,615.39 million by 2028; it is estimated to grow at a CAGR of 16.7% from 2021 to 2028. A modern colocation data center is a hub of connectivity, facilitating customers to switch directly to the services they require over a single cross-connect or even with a quick and secure direct connection such as Microsoft’s Azure ExpressRoute. As the telecom operators are currently involved in rolling out the first wave of 5G services, data centers are capable of supporting network service providers to extend their reach more rapidly through colocation services. Providing reliable 5G services is expected to require more data center infrastructure than several network service providers presently have at their disposal. With the continuous rise in internet usage, leading to greater data demands, data center colocation would emerge as a highly attractive and cost-effective solution for the telecommunications sector. Moreover, a significant number of companies cannot afford to expand their existing on-premises solutions or increase capacity by constructing a private data center. Through strategic collaborations with experienced data center colocation providers, they can gain all the benefits of a state-of-the-art facility without the need for substantial capital investments to build one. Thus, the emergence of 5G technology and its services is anticipated to propel the growth of the data center colocation market in the near future. On May 5, 2020, IBM announced new services and solutions to help enterprises and telecommunications companies speed up their transition to edge computing in the 5G era. The solution will help organizations across the region to deal with the blazing speed and extremely low latency and transmission delays brought about by the rollout of wireless 5G telecommunications networks. The solutions also enable enterprises to reduce the complexity of managing workloads across a volume of devices and help them to quickly deliver edge-enabled services to customers. Clients across industries can leverage the benefits of edge computing, AI, and analytics to achieve organizational insights.

Key Market Segments

The Europe data center colocation market is segmented into type, enterprise size, industry, and country. Based on type, the market is segmented into retail and wholesale. The retail segment dominated the market in 2020 and wholesale segment is expected to be the fastest growing during the forecast period. Based on enterprise size, the data center colocation market is divided into SMEs and large enterprises. The large enterprises segment dominated the market in 2020 and SMEs segment is expected to be the fastest growing during the forecast period. Further, based on industry, the market is segmented into IT & Telecom, BFSI, healthcare, retail, and others. The IT & Telecom segment dominated the market in 2020 and BFSI segment is expected to be the fastest growing during the forecast period.

Major Sources and Companies Listed

A few major primary and secondary sources referred to for preparing this report on data center colocation market in Europe are company websites, annual reports, financial reports, national government documents, and statistical database, among others. Major companies listed in the report are AT&T Intellectual Property; CyrusOne, Inc.; Cyxtera Technologies, Inc.; Digital Realty Trust LP; Equinix Inc.; Global Switch; NTT Communications Corporation; Telehouse; and Verizon Partner Solutions. are among others.

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Europe Data Center Colocation Market Segmentation

Europe Data Center Colocation Market –By Type

• Retail
• Wholesale

Europe Data Center Colocation Market –By Industry

• IT and Telecom
• BFSI
• Healthcare
• Retail
• Others

Europe Data Center Colocation Market –By Enterprise Size

• SMEs
• Large Enterprises

Europe Data Center Colocation Market -By Country

• Germany
• France
• Italy
• UK
• Russia
• Rest of Europe

Europe Data Center Colocation Market -Company Profiles

• AT&T Intellectual Property
• CyrusOne, Inc.
• Cyxtera Technologies, Inc.
• Digital Realty Trust LP
• Equinix Inc.
• Global Switch
• NTT Communications Corporation
• Telehouse
• Verizon Partner Solutions.

Europe Data Center Colocation Market Strategic Insights

Europe Data Center Colocation Market Segmentation Analysis

Europe Data Center Colocation Market Report Highlights

Europe Data Center Colocation Report Scope

Europe Data Center Colocation Market Country and Regional Insights