New Entrants Stir Up Competition in Europe Data Center Market - A $32.27 Billion Market by 2030, Rising at a CAGR of 18.59%
Major regions like Germany, France, and the UK are central to market expansion, with emerging markets like Milan and Warsaw gaining traction. Leading operators and new entrants are intensifying competition, while sustainability practices, such as HVO fuel adoption and advanced cooling methods, become crucial.
European Data Center Construction Market
Dublin, May 14, 2025 (GLOBE NEWSWIRE) -- The "Europe Data Center Construction Market - Industry Outlook & Forecast 2025-2030" report has been added to ResearchAndMarkets.com's offering.Europe's Data Center Construction Market was valued at USD 11.60 Billion in 2024, and is projected to reach USD 32.27 Billion by 2030, rising at a CAGR of 18.59%.
EUROPE DATA CENTER CONSTRUCTION MARKET KEY HIGHLIGHTS
The European data center market has expanded significantly because of the demand from hyperscale companies, the requirements of Artificial Intelligence, and the expansion of edge computing. To accommodate AI needs, data center operators have adapted advanced infrastructure and implemented innovative cooling and energy-efficient solutions to meet sustainability goals. Such factors are also projected to support the Europe data center construction market growth.
Supply chain disruptions, rising inflation, a skilled workforce shortage, and land and power scarcity are expected to negatively affect the Europe data center construction market.
Strong demand for data center capacity has been driven by hyperscale providers, financial institutions, healthcare organizations, and other large corporations contributing to unprecedented power capacity volume in the market.
The European government will encourage data center investments through initiatives, such as expanding land availability for development, lowering electricity costs for data centers, providing tax incentives, and facilitating renewable energy procurement. These measures are expected to drive Europe data center construction market growth over the forecast period.
The digitalization of businesses will lead to a rise in data center investments by colocation, cloud, internet, and telecommunications providers. Telecom companies, such as T-Mobile are driving the deployment of 5G services across the continent.
Some areas, such as London, Paris, and Frankfurt face land availability constraints restricting opportunities for new companies to enter the market. However, emerging regions, such as Amsterdam, Milan, and Warsaw, are increasingly preferred.
EUROPE DATA CENTER CONSTRUCTION MARKET SEGMENTATION INSIGHTS
Implementing modular power infrastructure, such as containerized power solutions used by OHVcloud in France in data centers is expected to yield long-term cost savings. These systems are more efficient, allowing for space optimization and reducing maintenance requirements.
Leading power supply companies, such as Schneider Electric, ABB, Eaton, Legrand, and Switch, have addressed the rising power demands of data centers. In response to the increasing construction of data centers, these companies have recommended building their substations to supply power directly to their data center campuses.
The adoption of HVO fuel as an alternative to diesel in generators is anticipated to grow due to its sustainability in the European data center construction market. Many operators, including Equinix, Digital Realty, STACK Infrastructure, and Green Mountain, have opted to replace diesel with HVO fuel to power their backup generators.
Real-time monitoring software featuring automation and AI is increasingly important as Equinix has Real-time monitoring with AI-powered automation, and Digital Realty has enhanced AI for operational monitoring. This technology can forecast maintenance requirements, detect component failures, and execute automatic switchover, ensuring continuous operations.
Various new and innovative power and cooling systems emphasizing sustainability have entered the Europe data center construction market. Infrastructure providers have increasingly prioritized the development of products that minimize environmental impact.
The adoption of cooling methods, such as evaporative coolers, has increased in regions with suitable climates, such as Norway, Sweden, Finland, and Iceland, providing effective cooling for data centers.
Beyond constructing and establishing data centers, the companies, including Equinix, Digital Realty, Green Mountain, and Telehouse emphasize strengthening physical security and employ real-time Data Center Infrastructure Management (DCIM) systems to monitor and manage facilities.
EUROPE DATA CENTER CONSTRUCTION MARKET GEOGRAPHICAL ANALYSIS
The data center construction and expansion activities are expected to be primarily concentrated in the large-scale colocation facilities of key European regions, such as Germany, France, the Netherlands, and the UK.
Frankfurt and London are among the leading data center markets in Europe. However, these cities are not likely to see significant hyperscale development due to space limitations in building large-scale facilities.
The availability of land for data center development in London and Berlin is a major constraint on the continent. Operators are expected to move to other regions, such as Milan and Warsaw, due to better access to land.
Several factors drive data center investments, including access to abundant power, a favorable cost environment, business-friendly tax policies, and ideal climatic conditions in Nordic countries, such as Sweden, Norway, Finland, and Iceland, which enable efficient free cooling for servers.
Ireland attracts investments from hyperscale data center operators, such as Microsoft and Amazon Web Services.
The U.K. benefits from strong connectivity hosting major subsea cables linking it to other European regions and various continents.
Regions, such as Marseille and Lyon, have gained traction as alternative data center locations due to land availability and better energy supply in France.
Switzerland's political neutrality, data protection regulations, and proximity to key European markets enhance its attractiveness to data center operators with Zurich and Geneva as the main data center hubs offering high security and reliability.
Milan is Italy's primary data center hub, benefiting from its strong economy and central location for connecting with Southern Europe, and smaller data center markets, such as Rome and Turin, are emerging as growing data center locations due to their favorable business environments.
The Nordics, including Denmark, Sweden, Norway, Iceland, and Finland, increasingly attract data center investments due to their cool climate, abundant renewable energy, such as hydropower, wind, and geothermal energy, and government incentives.
EUROPE DATA CENTER CONSTRUCTION MARKET VENDOR INSIGHTS
The growing demand for data centers is set to create substantial revenue opportunities for construction contractors. Significant contractors in this field include AECOM, Arup, DPR Construction, Artelia, and Bouygues Construction.
The Europe data center construction market features all the leading global colocation operators, including Equinix, Digital Realty, CyrusOne, DataBank, Iron Mountain, Vantage Data Centers, NTT DATA, and STACK Infrastructure.
Key hyperscale operators investing in the Europe data center construction market include Amazon Web Services (AWS), Microsoft, Meta (Facebook), and Google. They have broadened their presence across major data center hubs throughout Europe.
The Europe data center construction market has seen the emergence of several new players, including ACS Group, Ar Telecom, Blue, CloudHQ, dataR, Apto Data Centers, DATA for MED, and EDGNEX Data Centers by DAMAC. The arrival of these new operators could disrupt market share increasing the competition.
Despite the presence of major operators, several new companies have established large data center campuses across Europe. CloudHQ and Ar Telecom are building extensive data center facilities throughout the continent.
Digital Realty, Equinix, and Green Mountain are among the major operators in the Europe data center construction market. These companies have developed multiple data center campuses and facilities across the continent in various countries, including the UK, France, Ireland, Nordics, and Central and Eastern European countries.
Key Data Center Support Infrastructure Providers
3M
Airedale
AERMEC
Alfa Laval
ABB
Aksa Power Generation
AVK
Baudouin
Carrier
Caterpillar
Condair Group
Climaveneta
Cummins
D'HONDT THERMAL SOLUTIONS
Daikin Applied
Delta Electronics
Eaton
EBM-PAPST
EMICON INNOVATION AND COMFORT
Enrogen
FlaktGroup
Grundfos
Guntner
GESAB
HiRef
HITEC Power Protection
Honeywell
INNIO
JAEGGI Hybridtechnologie AG
Johnson Controls
Kohler
KyotoCooling
Legrand
Mitsubishi Electric
Munters
NetNordic Group AS
Nlyte Software
Perkins Engines
Piller Power Systems
Riello Elettronica Group
Rittal
Rolls-Royce
Schneider Electric
Siemens
Socomec Group
STULZ
Trane Technologies (Ingersoll Rand)
Vertiv
ZIEHL-ABEGG
Prominent Construction Contractors
ACS Group
AECOM
Altron
AODC
AEON Engineering
APL Data Center
ARC:MC
Ariatta
ARSMAGNA GROUP
Artelia
Arup
Aurora Group
AtkinsRealis
Basler & Hofmann
BENTHEM CROUWEL ARCHITECTS
Bouygues Construction
Bravida
CapIngelec
Caverion
Coromatic (E. ON)
Collen Construction
COWI
DataDome
Deerns
Designer Group
Dipl.-Ing. H. C. Hollige
Dornan
DPR Construction
Engexpor
Equans
Etop
Exyte (M+W Group)
Eiffage
Ethos Engineering
EYP Mission Critical Facilities
Ferrovial
Fluor Corporation
Future-tech
Granlund Group
GreenMDC
Gottlieb Paludan Architects
Haka Moscow
ICT Facilities
IDOM
IMOS
ISG
JCA Engineering
JERLAURE
John Sisk & Son
Kirby Group Engineering
KKCG Group
Linesight
LPI Group
M+W Group (EXYTE)
Mace
Mercury
Metnor Construction
MiCiM
MT Hojgaard
Nicholas Webb Architects (NWA)
NORMA Engineering
PM Group
PORR Group
PQC
Quark Unlimited Engineering
Ramboll
RED Engineering Design
Reid Brewin Architects
Renco
RKD
Royal HaskoningDHV
Salboheds
Skanska
SPIE
Starching
STO Building Group
STRABAG
STS Group
Sweco
TECHKO
Tetra Tech
TPF Ingenierie
TTSP
Turner & Townsend
Warbud
Winthrop Technologies
YIT
Techbau
Generale Prefabbricati S.p.A.
Rosenberger
ZAUNERGROUP
Prominent Data Center Investors
3data
3S Group
Aire Networks
Amazon Web Services
Ark Data Centres
Artnet
Atman
Apple
Aruba S.p.A.
AtlasEdge
AQ Compute
atNorth
Atomdata (Rosatom)
Bahnhof
Beyond.pl
Bulk Infrastructure
China Mobile International
Compass Data Centers
Colt Data Centre Services (COLT DCS)
CyrusOne
DATA4
DataCenter United
Datum
DENV-R
Digital Realty
EcoData Center
EdgeConneX
Equinix
Meta
Global Switch
Google
Green Datacenter
Green Mountain
Iron Mountain
IXcellerate
K2 STRATEGIC
Kao Data
Keppel Data Centres
LCL Data Center
Linx Data Centers
Maincubes SECURE DATACENTERS
Merlin Properties
Microsoft
MTS
NTT DATA
Penta Infra
Pure Data Centres
Rostelecom
Selectel
STACK Infrastructure
STACKIT
Storespeed
Switch Datacenters
Telehouse
Thesee DataCenter
Vantage Data Centers
VIRTUS Data Centres
Yondr
New Entrants
ADA Infrastructure
Service Offerings
Apto Data Centre
Ar Telecom
Art Data Centres
Atlantic Data Infrastructure
Best Wonder Business
Blue
Bluestar Data Center
Castle IT
Ceske Radiokomunikace
CloudHQ
Data Castle
dataR
Dataformed
Digital Reef
Eclairion
EDGNEX Data Centres by DAMAC
Elementica
Energia Data Centre
Evroc
Form8tion Data Centers
Global Technical Realty
GreenScale
Goodman
Hyperco
Ingenostrum
KEVLINX
Keysource + Namsos DataSenter (NDS)
Lasercharm
Latos
Nation Data Center
Nautilus Data Technologies
EdgeNebula
Mediterra Datacenters
Nehos
Nethits Telecom
OPCORE
PGIM Real Estate
PHOCEA DC
PolarDC
Prime Data Centers
Quetta Data Centers
QTS Data Centers
REMOV
SDC Capital Partners
SEGRO
Serve Centric
VITALI
Key Attributes:
Report Attribute
Details
No. of Pages
845
Forecast Period
2024 - 2030
Estimated Market Value (USD) in 2024
$11.6 Billion
Forecasted Market Value (USD) by 2030
$32.27 Billion
Compound Annual Growth Rate
18.5%
Regions Covered
Europe
Key Market Segmentation:
Facility Type
Hyperscale Data Centers
Colocation Data Centers
Enterprise Data Centers
Infrastructure
Electrical Infrastructure
Mechanical Infrastructure
General Construction
Electrical Infrastructure
UPS Systems
Generators
Transfer Switches & Switchgears
PDUs
Other Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
Racks
Other Mechanical Infrastructure
Cooling Systems
CRAC & CRAH Units
Chiller Units
Cooling Towers, Condensers & Dry Coolers
Other Cooling Units
Cooling Techniques
Air-based Cooling
Liquid-based Cooling
General Construction
Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Fire Detection & Suppression
Physical Security
DCIM/BMS Solutions
Tier Standards
Tier I & Tier II
Tier III
Tier IV
Geography
Western Europe
U.K.
Germany
France
Netherlands
Ireland
Switzerland
Italy
Spain
Belgium
Portugal
Greece
Other Western European Countries
Nordics
Denmark
Sweden
Norway
Finland
Iceland
Central and Eastern Europe
Russia
Poland
Austria
Czech
Other Central & Eastern European Countries
For more information about this report visit https://www.researchandmarkets.com/r/tc06vk
About ResearchAndMarkets.comResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
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European Data Center Construction Market
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- The Hill
New disputes emerge ahead of US-China trade talks in London
BEIJING (AP) — U.S.-China trade talks in London this week are expected to take up a series of fresh disputes that have buffeted relations, threatening a fragile truce over tariffs. Both sides agreed in Geneva last month to a 90-day suspension of most of the 100%-plus tariffs they had imposed on each other in an escalating trade war that had sparked fears of recession. Since then, the U.S. and China have exchanged angry words over advanced semiconductors that power artificial intelligence, 'rare earths' that are vital to carmakers and other industries, and visas for Chinese students at American universities. President Donald Trump spoke at length with Chinese leader Xi Jinping by phone last Thursday in an attempt to put relations back on track. Trump announced on social media the next day that trade talks would be held on Monday in London. The latest frictions began just a day after the May 12 announcement of the Geneva agreement to 'pause' tariffs for 90 days. The U.S. Commerce Department issued guidance saying the use of Ascend AI chips from Huawei, a leading Chinese tech company, could violate U.S. export controls. That's because the chips were likely developed with American technology despite restrictions on its export to China, the guidance said. The Chinese government wasn't pleased. One of its biggest beefs in recent years has been over U.S. moves to limit the access of Chinese companies to technology, and in particular to equipment and processes needed to produce the most advanced semiconductors. 'The Chinese side urges the U.S. side to immediately correct its erroneous practices,' a Commerce Ministry spokesperson said. U.S. Commerce Secretary Howard Lutnick wasn't in Geneva but will join the talks in London. Analysts say that suggests at least a willingness on the U.S. side to hear out China's concerns on export controls. One area where China holds the upper hand is in the mining and processing of rare earths. They are crucial for not only autos but also a range of other products from robots to military equipment. The Chinese government started requiring producers to obtain a license to export seven rare earth elements in April. Resulting shortages sent automakers worldwide into a tizzy. As stockpiles ran down, some worried they would have to halt production. Trump, without mentioning rare earths specifically, took to social media to attack China. 'The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump posted on May 30. The Chinese government indicated Saturday that it is addressing the concerns, which have come from European companies as well. A Commerce Ministry statement said it had granted some approvals and 'will continue to strengthen the approval of applications that comply with regulations.' The scramble to resolve the rare earth issue shows that China has a strong card to play if it wants to strike back against tariffs or other measures. Student visas don't normally figure in trade talks, but a U.S. announcement that it would begin revoking the visas of some Chinese students has emerged as another thorn in the relationship. China's Commerce Ministry raised the issue when asked last week about the accusation that it had violated the consensus reached in Geneva. It replied that the U.S. had undermined the agreement by issuing export control guidelines for AI chips, stopping the sale of chip design software to China and saying it would revoke Chinese student visas. 'The United States has unilaterally provoked new economic and trade frictions,' the ministry said in a statement posted on its website. U.S. Secretary of State Marco Rubio said in a May 28 statement that the United States would 'aggressively revoke visas for Chinese students, including those with connections to the Chinese Communist Party or studying in critical fields.' More than 270,000 Chinese students studied in the U.S. in the 2023-24 academic year.
