Dublin, May 26, 2023 (GLOBE NEWSWIRE) -- The "Western Europe Data Center Construction Market - Industry Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The Western Europe data center construction market is expected to reach a value of $10.61 billion by 2028 from $8.22 billion in 2022, growing at a CAGR of 4.33% during 2022 to 2028

There is a high demand from organizations for retail colocation services in developing countries. Enterprises having limited budgets and demanding geographical distribution capacities will drive the demand for retail colocation services. There is an increasing demand for computing power from cloud providers, enterprises, IoT, and Big Data organizations, which will drive wholesale colocation demand.

Germany leads the Western Europe data center market with an overall investment of over USD 1.8 billion in 2022. The country's cumulative growth is expected to be more than USD 12 billion during the forecast period. The growth in data center development has led the contractors to implement new sustainable methods, increasing the competition among them. Operators opt for these contractors to enhance their green credentials.

There is significant growth in greenfield and modular data center developments. The modular data center developments are increased as the construction methods are seemed inefficient due to labor shortages, budget constraints, and construction delays in certain countries across the region. The increased demand for modular solutions from data center operators is increasing the revenue of modular data center solutions providers such as Vertiv, Dell, and HPE, among others.

The power capacity is expected to grow significantly in the region with the advent of colocation and hyperscale operators investing highly in the market. There is a trend of procuring energy harnessed from renewable power sources by colocation, hyperscale, and colocation service providers.

KEY TRENDS & DRIVERS

Growing Adoption of Artificial Intelligence

The adoption of artificial intelligence is fueling data generation and the technology market, thereby increasing the need for data center construction. Eurostat released a report according to which Ireland ranks at the top in Europe in using AI/ML technologies by businesses and enterprises in their infrastructure or applications.

Several AI initiatives in countries across the region include global partnerships on artificial intelligence, a mission on artificial intelligence, a national strategy on artificial intelligence, and others. For instance, The Government of France invested around USD 1.7 billion in its National Strategy for Artificial Intelligence.

The high adoption of AI/ML solutions is prompting the installation of a highly efficient cooling infrastructure. Liquid cooling is the prominent technology for supporting AI/ML workloads in High-Performance Computing (HPC). Direct-to-chip and liquid-immersion cooling markets, through OEM, are making strong bonds.

Research & Development centers are being set up for innovations in AI and other applications across various Western European countries. For instance, R&D centers for AI have been set up by companies such as Google, Oracle, and Huawei.

Increase in Sustainable Initiatives

Data centers, the major sources of carbon emissions worldwide, are looking for sustainable initiatives to reduce the high quantity of CO2 emissions generated by the facilities. According to the Europe Climate act, a part of the European Green Deal, countries across the continent are aiming to achieve net zero carbon emissions by the year 2050.

Various operators in Western Europe are a part of the Climate Neutral Data Center Pact act, such as Interxion (Digital Realty), Aruba, OVHcloud, Equinix, and Scaleway data center, among 17 industry associations. The pact states that the facilities part of it must be powered completely using energy harnessed from renewable energy sources such as wind, hydro, solar, and others by 2030. The Government of the UK aims to achieve 100% renewable energy in its energy mix by 2035.

Rising Colocation Data Center Investments

The Western Europe data center construction market has shown signs of growth with the development of hyperscale data centers by cloud service providers such as Microsoft, IBM, Amazon Web Services (AWS), Oracle, Google, and Tencent. The prominent investors in the Western Europe data center construction include Equinix, Interxion (Digital Realty), NTT Global Centers, Echelon Data Centres, Iron Mountain, OVHcloud, Vantage Data Centers, and VIRTUS Data Centres.

In August 2022, Proximity Data Centres opened a data center in Buckinghamshire. A loan of USD 30.8 million was granted to the operator for its UK expansion, with a total investment of USD 99 million. OVHcloud, a cloud computing, has planned to invest around USD 101 million by 2027 for its upcoming data center in Limburg.

Telehouse has planned an investment of around USD 988 million for its European expansion. Telehouse plans an investment of around USD 988 million for its expansion in countries across Western Europe and other regions in Europe. An increase in data center investment will provide huge revenue opportunities for construction contractors and colocation and infrastructure providers worth billions of dollars.

COMPETITIVE ANALYSIS

Some of the major vendors operating in the Western Europe data center construction market include Arup, AECOM, Ariatta, Bouygues, ICT facilities, Mercury, Metnor Group, Oakmont Construction, ARC:MC, Kirby Group Engineering, DPR Construction, Turner & Townsend, Gruner, Lupp Group, Max Bogl, Exyte, DBA PRO, Future-tech, ISG, and NORMA.

SEGMENTAL ANALYSIS

Support of The Government For Data Centers

Key Attributes:

Report AttributeDetails
No. of Pages467
Forecast Period2022 - 2028
Estimated Market Value (USD) in 2022$8.22 Billion
Forecasted Market Value (USD) by 2028$10.61 Billion
Compound Annual Growth Rate4.3%
Regions CoveredEurope

Market Overview

Data Center Design Certifications

Market Opportunities & Trends

Market Growth Enablers

Market Restraints

Prominent Support Infrastructure Providers

Prominent Construction Contractors

Prominent Data Center Investors

New Entrants

For more information about this report visit https://www.researchandmarkets.com/r/ka82ij

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