EMEA Data Center Colocation Market Size to Reach Revenues of around USD 14 Billion by 2025

In-depth analysis and data-driven insights on the impact of COVID-19 included in this EMEA data center colocation market report.

The EMEA data center colocation market is expected to grow at a CAGR of approximately 8% during the period 2019−2025.

Key Highlights Offered in the Report:

1. EMEA colocation market to witness cumulative investments of over USD 40 billion towards data center development during 2020-2025.

2. In 2019, the market witnessed addition of around 5 million square feet of colocation space, which is expected to grow on an annual basis of around 7 million square feet, contributed by hyperscale investments by 2025.

3. In 2019, about five new entrants were identified in the market, with several US-based service providers such as QTS Data Centers and Vantage Data Centers entering the European market to gain sizable share.

4. The Middle East & Africa market to witness cumulative investments of around USD 1.6 billion during 2020-2025.

5. Colocation market revenue in Africa, Middle East, Poland & Austria, and Nordic counties to grow over 10% CAGR during 2019-2025.

EMEA Data Center Colocation Market – Segmentation

The UK, Germany, the Netherlands, France, and Ireland are major contributors to the power infrastructure revenue. Several facilities have adopted flexible designs in Western Europe to facilitate dual power feeds, 2N redundant UPS and PDU systems, and N+1 generator.

Favorable climatic conditions and the availability of renewable resources such as wind energy in the UK have helped data center operators to benefit from free cooling. Most of the data centers built in Germany are adopting free cooling to cool the facility. A major vendor uses redundant water and air-cooled system supported by free cooling with N+1 redundancy and CRAH units with N+1 configuration.

In terms of physical security, facilities are monitored by CCTV surveillance and security patrols and there are multiple access barriers with mantraps, contactless key cards, and biometric readers. Greenfield construction development dominates the Middle East market.

EMEA Data Center Colocation Market by Electrical Infrastructure

• UPS Systems

• Generators

• Transfer Switches & Switchgears

• PDUs

• Other Electrical Infrastructure

EMEA Data Center Colocation Market by Mechanical Infrastructure

• Cooling Systems

• CRAC & CRAH Units

• Chiller Units

• Cooling Towers & Dry Coolers

• Economizers & Evaporative Coolers

• Other Units

• Racks

• Other Mechanical Infrastructure

Cooling Technique

• Air-based

• Water-based

EMEA Data Center Colocation Market by General Construction

• Building Development

• Installation & Commissioning Services

• Building Designs

• Physical Security

• DCIM/BMS

EMEA Data Center Colocation Market by Service Type

• Retail

• Wholesale

EMEA Data Center Colocation Market – Dynamics

Over the last two years, the investment by colocation providers has increased considerably. In Western Europe, Germany, the UK, and the Netherlands are continuing to witness investments, and Ireland's contribution likely to grow significantly in the next few years. In the Nordics, Sweden dominated in terms of colocation investments, followed by Norway. Many investments in the Nordics are still in the planning stage, especially for hyperscale buildouts. Equinix, NTT (e-Shelter), Interxion, Digital Realty, CyrusOne, and STT GDC (VIRTUS) are the major colocation investors in the region. There are about 14 hyperscale colocation data centers that were opened or under construction in 2019 and expected to be operational by June 2020. Colocation providers are also involved in the phase-wise construction of hyperscale data centers that support a power capacity of over 20 MW on full-build.

Key Drivers and Trends fueling Market Growth:

• Rising Demand for Cloud Connectivity & Hybrid Infrastructure Services

• Tax Incentives Reduce Colocation OPEX & Customer Costs

• Adoption of Renewable Energy Among Colocation Providers

• M&As to Improve Colocation Market Share

EMEA Data Center Colocation Market – Geography

The colocation data center market in Western Europe is witnessing investment contributions from both global and local colocation service providers. The GDPR implementation has driven the demand for data center development among colocation providers. The market will also witness the continuous adoption of cloud services among SMEs, with the increased interest shown towards 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 the growth of data centers and corresponding infrastructure in the region. Data centers in Western Europe are increasingly being built to support OCP rack infrastructure solutions. This is aided by the growth of ODM solutions in the market.

EMEA Data Center Colocation Market by Geography

Western Europe

• UK

• Germany

• Netherlands

• France

• Ireland

• Other Western Europe Countries

Nordic

• Denmark

• Norway

• Sweden

• Finland & Iceland

Central and Eastern Europe

• Russia & Czech Republic

• Poland & Austria

• Other Countries

Middle East

• GCC

• Other Middle Eastern Countries

Africa

• South Africa

• Other African Countries

Prominent Colocation Service Vendors

• Colt Data Center Services (Colt DCS)

• Digital Realty

• Equinix

• Global Switch

• Interxion

• VIRTUS Data Center

• NTT Communications or NTT Global Data Center

• Teraco Data Environments

Data Center Investors

New Entrants

• Echelon Data Centers

• Business Overview

• Product Offerings

• Global Technical Realty

• NDC Data Center

• Quality Technology Services (QTS)

• Raxio Data Center

• Vantage Data Center

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SOURCE: Arizton Advisory & Intelligence