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Home > Data Center > The Europe data center market is growing due to renewable energy sources

The Europe data center market is growing due to renewable energy sources

The Europe data center market is expected to grow at a CAGR of over 4% during the period 2021–2026, due to the growing procurement of renewable energy sources.


Seda Nur Cinar Seda Nur Cinar
March 19, 2021
3 min read
The Europe data center market is growing due to renewable energy sources

Reportlinker.com released the report “Data Center Market in Europe – Industry Outlook and Forecast 2021-2026”. The European data center market is expected to grow at a CAGR of over 4% during the period 2021–2026, due to the growing procurement of renewable energy sources.

Table of Contents

  • Factors affecting the growth of the market
  • Climate Neutral Data Centre Pact
  • Details of European data center market
  • 217 certified data centers in 29 countries

Factors affecting the growth of the market

Western Europe is the most active market for data center construction across the European region. The increase in demand for cloud computing and other related services has offered several revenue opportunities for multiple and sub-contractors in the market.

Procurement of renewable energy sources, the introduction of innovative UPS battery technology, adoption of district heating by data centers, cloud adoption are the important factors that will affect the growth of the European data center market during the forecast period.

Climate Neutral Data Centre Pact

Hyperscale data center providers are the major investors in renewable energy initiatives. Over 25 European cloud and data center operators, including AWS, Google, Equinix, Interxion, OVH Cloud, Scaleway, Aruba, and 17 other industry associations have signed an agreement to make their facilities carbon neutral via 100% renewable energy sources by 2030.

According to the Climate Neutral Data Centre Pact, 75% of the power supplied to data centers in Europe will be supplied through renewable energy or carbon-free energy by December 31, 2025, and the objective is to reach 100% by December 31, 2030. Norway is the leading country in the production of renewable energy sources, followed by Sweden and Finland. Iceland continues to produce 100% of electricity through renewable sources.

Details of European data center market

The high consumption of internet-based services is expected to drive the IT infrastructure market. Hyperscale operators procured ODM infrastructure, which grew by over 10% across Europe in 2020. UPS systems are the highest contributors to market investment. In 2020, the adoption of lithium-ion UPS systems grew considerably. Most data centers operating in Europe are adopting N+N redundant infrastructure. Data center operators have adopted innovative and energy-efficient cooling infrastructure solutions, aiming to reduce power consumption by up to 50%. This is expected to grow during the forecast period as market vendors are introducing innovative high-efficient cooling systems.

The server infrastructure market has witnessed strong growth over the last two years. Server systems based on x86 architecture dominated the European data center market share with over 85% in 2020. Most modern operators adopt the server infrastructure that matches workload requirements. The demand for servers suitable for cloud environments is likely to grow during the forecast period. The increase in bandwidth requirements, data center consolidation, and virtualization are some major factors driving the demand for ethernet port switches, controllers, and adaptors. 25/50 GbE switches are likely to experience considerable growth during the forecast period.

217 certified data centers in 29 countries

According to the Uptime Institute, Europe has around 217 certified data centers spread over 29 countries, which include local and global facilities. A majority of them are in the UK, Russia, Spain, Lithuania, Luxembourg, Italy, and France. Europe has higher Tier III certified facilities than Tier IV and Tier II. Around 163 facilities in Europe are Tier III certified. Russia, the UK, Spain, Italy, and Lithuania have the highest number of certified data centers.

See more Data Center News


Seda Nur Cinar

Seda Nur Cinar

Seda Nur Cinar is the news editor of the Cloud7 News. With more than 8 years of Linux and cloud experience, Seda is a Linux and opensource enthusiast, security researcher and a web application developer.

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