The European data center market is projected to grow from $39.9 billion in 2022 to $55.45 billion by 2028, expanding at a compound annual growth rate (CAGR) of 5.64%, according to a recent report published by ResearchAndMarkets.com on Monday.
The surge in investments in major countries including the U.K., Germany, France, Sweden, Denmark, and Poland is fueling this growth. Italy, Norway, and Spain are also emerging as significant markets in the region due to increasing investments in data centers.
The report also highlighted key trends shaping the market. The deployment of 5G services is expected to spur the demand for edge data centers, particularly in tier II and tier III cities where constructing large data centers may not be feasible. For instance, VueNow InfoTech, an Indian data center firm, recently announced plans to construct six edge data center facilities in Bulgaria.
Another trend driving the market is the growing adoption of innovative IT infrastructure. Over the past few years, there has been a rise in the construction of self-built data centers by hyperscale operators and new projects by colocation operators.
The report also provided insights into market segmentation. In terms of power infrastructure, UPS systems were the highest contributors to power market investment. As for cooling systems, free cooling techniques have grown significantly across regions with favorable climatic conditions that can use evaporative/adiabatic coolers for facility cooling purposes.
The report also identified several prominent support infrastructure providers contributing to the competitiveness of the industry including Arista Networks (NYSE:ANET), Atos, Cisco Systems (NASDAQ:CSCO), Dell Technologies (NYSE:DELL), ABB, Caterpillar (NYSE:CAT), Condair, Alfa Laval, Siemens, and Delta Electronics among others.
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