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Europe Data Center Colocation Markets, 2021-2026 - Rising Adoption of Renewable Energy by Colocation Providers & Increase in M&As to Grow Colocation Market

·8-min read

Dublin, June 25, 2021 (GLOBE NEWSWIRE) -- The "Europe Data Center Colocation Market - Industry Outlook & Forecast 2021-2026" report has been added to ResearchAndMarkets.com's offering.

The Europe data center colocation market by investment is expected to grow at a CAGR of over 5.61% during the period 2020-2026.

The data center colocation market in Europe is an attractive asset with a better Return on Investment (ROI) than other commercial and industrial properties.

In 2020, the outbreak of the COVID-19 pandemic was creating huge demand for cloud-based providers, and the majority of the workforce shifting to remote working in Europe. The need for colocation services led to strong utilization of existing data center space and drove service providers' revenues by over 10% in Q1 and Q2 2020.

The continuous adoption of cloud services among SMEs, with the rising interest toward the digital transformation of businesses by adopting solutions such as IoT, big data, and artificial intelligence. Governments across the region are reducing electricity prices and electricity taxes to attract data center operators to invest in their countries.

EUROPE DATA CENTER COLOCATION MARKET SEGMENTATION

The Europe data center colocation market research report includes a detailed segmentation by infrastructure, electrical infrastructure, mechanical infrastructure, general construction, service type, tier standards, geography. To overcome the challenges of VRLA batteries, vendors are introducing lithium-ion UPS solutions, Nickel Zinc, and Prussian Blue Sodium-ion batteries. In 2020, the adoption of lithium-ion UPS systems grew considerably. In terms of power infrastructure, UPS systems were the highest contributors to market investments by adopting VRLA battery-powered systems.

VRLA battery-powered UPS systems are most widely used in the data center environment and other industrial applications. The contribution from colocation providers will be high in lithium-ion UPS solutions. Vendors are continuously innovating with UPS solutions to boost efficiency and reduce cost. For instance, ZincFive, a US-based battery developer and manufacturer, launched a megawatt-class UPS system for data centers that is based on Nickel-Zinc batteries.

Datacenter operators are looking for efficient solutions to reduce their CAPEX and OPEX, conserve data center space, and reduce the power consumption of cooling units. Europe experiences colder climatic conditions and will continue to use indirect evaporative coolers and air/water-side economizers. Free cooling chillers that facilitate partial cooling using outside air are also highly preferred by several facilities. For instance, NTT Global Data Centers’ (e-shelter) London 1 data center facility is equipped with N+1 redundancy of water-based cooling systems supported by free cooling. In data center projects, the investment in cooling systems is expected to be 15-20% of the overall cost, depending on the facility design and IT load.

The adoption of data center physical security systems mainly depends on the growth of retail colocation services, which requires higher security. The application of innovation in connected security products is boosting the growth in the Europe market. In the coming years, the Europe data center colocation market will witness increased robotic monitoring systems with sensors and video surveillance.

The retail colocation market is likely to be driven by the high demand for colocation services from organizations in developing countries. In comparison to wholesale colocation services, retail colocation services are highly suitable for those enterprises that require lesser computing power at a single site or across multiple locations to service global and local customers. The retail colocation market is expected to witness significant growth during the forecast period.

UPS and PDU systems of Tier II data centers are equipped with minimum N+N redundancy. The UK has around 16 Tier III facilities that are developed by local and global service providers, namely, Pure Data Centres, VIRTUS Data Centres (ST Telemedia Global Data Centres), Colt Data Centre Services, Fujitsu Services, and Ark Data Centres.

A majority of under-developed projects across the region fall under the Tier III category. This trend is likely to continue throughout the forecast period. Many operators are expected to move to the Tier IV category based on the growth in rack power density and critical data center applications. Italy, Spain, and Luxembourg are the major locations with 32 Tier IV facilities.

INSIGHTS BY GEOGRAPHY

The data center market in Western Europe witnessed significant investment growth in countries such as the UK, the Netherlands, Germany, France, Ireland, Spain, Italy, Portugal, Belgium, and Switzerland. Multiple projects are being carried out by colocation, cloud, telecommunication, and internet service providers in Western Europe.

The market will also witness the continuous adoption of cloud services among SMEs, with the heightened interest in the digital transformation of businesses by adopting solutions such as IoT, big data, and artificial intelligence. The demand for smart devices, coupled with growing internet penetration, will also fuel colocation facilities and corresponding infrastructure in the region.

INSIGHTS BY VENDORS

Equinix was the leading operator in the colocation market, and the average occupancy rate for Equinix data centers in Europe was around 80-85%.

The company generated over USD 1.44 billion from colocation services, a jump of over 2.8% from the revenue generated in 2019. CyrusOne, with a share of around 5.7%, in terms of the area added in the Europe colocation market in 2020. It added around 238,000 square feet of data center space to develop around five facilities across the UK, Ireland, Germany, and the Netherlands.

Prominent Data Center Colocation Providers

  • Aruba

  • Bahnhof

  • CyrusOne

  • Colt DCS

  • DATA4

  • Digital Realty

  • Equinix

  • Global Switch

  • Green Mountain

  • NTT Global Data Centers

  • QTS Realty Trust

  • Virtus Data Centres (ST Telemedia Global Data Centres)

Other Prominent Data Center Colocation Providers

  • 3data

  • acens Technologies

  • Adam

  • AzInTelecom

  • Bulk Infrastructure Group

  • China Mobile International

  • CloudHQ

  • Dataplace

  • DigiPlex

  • EcoDataCenter

  • Euclyde Data Centers

  • GlobalConnect

  • Hydro66 Holdings

  • Iron Mountain

  • KDDI

  • Keppel Data Centres

  • maincubes One

  • myLoc

  • NDC-GARBE Data Centers Europe

  • Nexica - Econocom Group

  • Orange

  • Rostelecom

  • Scaleway Datacenter

  • Telecom Italia Sparkle

  • Turkcell

  • T5 Data Centers

  • Vantage Data Centers

  • WORLDSTREAM

  • Yandex Cloud

  • Zayo Group

New Entrants in Europe Colocation Market

  • AQ Compute

  • Echelon Data Centres

  • Global Technical Realty

  • Stratus DC Management

Key Topics Covered:

1 Research Methodology

2 Research Objectives

3 Research Process

4 Scope & Coverage

5 Report Assumptions & Caveats

6 Market at a Glance

7 Introduction
7.1 Electricity Pricing In Europe
7.2 Data Center Site Selection Criteria

8 Market Opportunities & Trends
8.1 Rising Adoption Of Renewable Energy By Colocation Providers
8.2 Increase In M&As To Grow Colocation Market
8.3 Growing Edge Data Center Demand
8.4 Growing Procurement Of Innovative Ups Batteries
8.5 Growth In Adoption Of District Heating
8.6 Growing Rack Power Density
8.7 Increased Adoption Of OCP & Hyperscale Infrastructure

9 Market Growth Enablers
9.1 Impact Of COVID-19 On Data Center Demand
9.2 Increase in Cloud Connectivity
9.3 Increasing Demand for Big Data & Iot Solutions
9.4 Impact of Tax Incentives On Data Center Market
9.5 Impact of Data Regulations On Colocation Investment
9.6 Growing Submarine Cables & Inland Connectivity
9.7 Rise in Colocation Investments
9.8 Construction of Green Data Centers With PUE < 1.5

10 Market Restraints
10.1 Lack of Skilled Workforce
10.2 Rising Carbon Emissions From Data Centers
10.3 Location Constraints For Data Centers
10.4 Network Reliability & Security Challenges

11 Market Landscape
11.1 Market Overview
11.2 Investment: Market Size & Forecast
11.3 Area: Market Size & Forecast
11.4 Power Capacity: Market Size & Forecast
11.5 Colocation Revenue: Market Size & Forecast
11.6 Five Forces Analysis

12 Colocation Services
12.1 Market Snapshot & Growth Engine
12.2 Market Overview
12.3 Retail Colocation
12.4 Wholesale Colocation

13 Infrastructure
13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.3 Electrical Infrastructure
13.4 Mechanical Infrastructure
13.5 General Construction

14 Electrical Infrastructure
14.1 Market Snapshot & Growth Engine
14.2 UPS Systems
14.3 Generators
14.4 Transfer Switches & Switchgear
14.5 Power Distribution Units

15 Mechanical Infrastructure
15.1 Market Snapshot & Growth Engine
15.2 Cooling Systems
15.3 Racks

16 Cooling Systems
16.1 Market Snapshot & Growth Engine
16.2 CRAC & CRAH Units
16.3 Chiller Units
16.4 Cooling Towers, Condensers & Dry Coolers
16.5 Economizers & Evaporative Coolers

17 Cooling Technique
17.1 Market Snapshot & Growth Engine
17.2 Air-Based Cooling Technique
17.3 Liquid-Based Cooling Technique

18 General Construction
18.1 Market Snapshot & Growth Engine
18.2 Core & Shell Development
18.3 Installation & Commissioning Services
18.4 Building & Engineering Design
18.5 Physical Security
18.6 DCIM/BMS Solutions

19 Tier Standards
19.1 Market Snapshot & Growth Engine
19.2 Tier I & Tier Ii
19.3 Tier III
19.4 Tier IV

20 Geography
20.1 Investment: Market Snapshot & Growth Engine
20.2 Area: Market Snapshot & Growth Engine
20.3 Power Capacity: Market Snapshot & Growth Engine

For more information about this report visit https://www.researchandmarkets.com/r/tid6ma

CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood, Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900


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