Europe Data Center Construction Market Size and Competitive Analysis by 2030

The Europe data center construction market size was valued at US$ 54.81 billion in 2022 and is expected to reach US$ 96.52 billion by 2030; it is estimated to record a CAGR of 7.3% from 2022 to 2030.

Analyst Perspective:

Data center construction is the physical establishment of a facility that accommodates and facilitates various IT operations and equipment for storage, processing, and management of data. The Europe data center construction market report emphasizes on the key factors driving the market and prominent players' developments.

Data Center Construction Market Overview:

Data center construction encompasses designing and constructing a data center facility that adheres to specific requirements and standards. Data center construction prioritizes the creation of a floor plan that offers sufficient space to accommodate current and future servers and equipment. This ensures that the facility can effectively manage the growing demand for data storage and processing. Data centers must be designed to withstand natural disasters such as earthquakes, floods, and storms. Construction efforts involve implementing preventive measures and mitigating their impact, including incorporating fire prevention systems and ensuring an adequate water supply for firefighting. Data center construction entails meticulous planning and design of infrastructure components such as cabling, cooling systems, power supply, and security measures. Building codes and industry standards are considered to ensure efficient and safe operations.

The construction process typically comprises several stages, including assessment, planning, design, and actual construction. Each stage requires careful consideration of business needs, facility requirements, and compliance with regulations. Data centers vary in size, capacity, and purpose. Different types and tiers exist, each possessing specific characteristics and capabilities. The design and construction of a data center depend on its intended use and the desired level of redundancy and reliability. Data center construction is a complex and critical process that necessitates expertise in areas such as architecture, electrical engineering, mechanical engineering, and IT infrastructure. Its objective is to establish a secure, reliable, and efficient environment for data storage and processing operations. The Europe data center construction market forecast is based on various sources of data and methods of analysis, such as historical trends, surveys, company developments, and white papers.

Increasing use of green data centers is expected to bring new data center construction market trends in the coming years.

The Europe data center construction market is segmented on the basis of type of construction, tier design, and industry vertical. Based on type of construction, the Europe data center construction market is segmented into general construction, electrical design, and mechanical design. Based on tier design, the Europe data center construction market is segmented into Tier 1 and Tier 2, Tier 3, and Tier 4. Based on industry vertical, the Europe data center construction market is segmented into IT and Telecommunication, BFSI, government, manufacturing, retail, transportation, media & entertainment, and others.

Rittal GmbH & Co KG, Schneider Electric SE, DPR Construction Inc, INFINITI IT Ltd, blu-3 (UK) Ltd, Datalec Power Installations Ltd, Coromatic AB Sweden, Winthrop Technologies Ltd, Mercury Engineering Ltd, and STO Building Group Inc. are among the key players that were profiled during this study of the data center construction market. Additionally, several other important market players were studied and analyzed during this research study to get a holistic view of the ecosystem.

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Europe Data Center Construction Market: Strategic Insights

Europe Data Center Construction Market

• Market Size 2022
  US$ 54.81 Billion
• Market Size 2030
  US$ 96.52 Billion

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Regional Overview

• Europe

Market Segmentation

Types of Construction

• Electrical Construction
• General Construction
• Mechanical Construction

Tier Standards

• Tier 3
• Tier 4
• Tier 1 & Tier 2

Industry Verticals

• IT & Telecommunication
• BFSI
• Media and Entertainment
• Retail
• Manufacturing
• Government
• Transportation

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Data center construction Market Driver:

Rapid Expansion of IoT Services Drives Europe Data Center Construction Market Growth

The rapid expansion of Internet of Things (IoT) services is a major driver for the data center construction market. The IoT has transformed data centers in recent years due to a surge in IoT devices such as lightbulbs, cellphones, and webcams. The number of IoT devices is anticipated to grow to 41.6–75.44 billion by 2025. The more the number of IoT devices, the greater the reliance on data centers to appropriately store, process, and analyze data. In addition, as more and more devices connect to the internet through IoT, they generate massive amounts of data. These include sensors in smart homes, wearables, industrial equipment, connected cars, and more. The type of data generated by these devices is becoming increasingly diverse and complex. It includes location data, environmental data, usage data, and even real-time video streams.

Further, the data center landscape is evolving due to the adoption of IoT. Analytics and processes are critical components in a company's digital transformation. Analytics and processes provide an avenue for data centers to expand their activities in terms of their operations. Their distinct digitization processes will include IoT deployment in operations, capacity building, business development, infrastructure, and system utilization. Overall, the expanding landscape of IoT services significantly drives the data center construction market. As more devices connect and generate even more data, the need for efficient and scalable data center infrastructure will only increase.

Data Center Construction Market Segmental Analysis:

The Europe data center construction market analysis has been carried out by considering the following segments: type of construction, tier standards, and industry verticals. Based on type of construction, the data center construction market is segmented into electrical construction, general construction, and mechanical construction. The electrical construction segment accounted for 46.71% of the Europe data center construction market share. A data center involves several electrical devices, including utility feeds, switchgear, generators, UPS, and PDUs, that help transmit power from a utility feed to server racks. Electrical supplies reaching the data center infrastructure need to be converted to a usable voltage level, which is done by using a transformer. In addition, utility grids are the main source of power supply to the data centers. At the same time, switchgear helps safely supply power from the transformer or utility to the data center floor. Further, generators and uninterruptible power supply deliver longer-term and temporary backup power, respectively. Power distribution units help transfer electricity or power to racks and standalone systems.

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Data Center Construction Market Regional Analysis:

The Europe data center construction market is segmented into Germany, France, Sweden, the UK, and the Rest of Europe. The Europe data center construction market is experiencing growth due to factors such as the strength of the European economy, the rise in demand for cloud computing, and the increased reliance on digital technologies. The market encompasses various infrastructure types and offerings, including electrical infrastructure, mechanical infrastructure, general infrastructure, solutions, services, and professional services. Several companies are actively involved in the Europe data center construction market. For instance, in October 2023, Data4, a data center operator based in France, enlisted the services of Hill International to oversee the development of a new campus in San Agustín de Guadalix, Spain. The project, known as MAD2, will span across a 6.5-hectare site and encompass four data centers with a combined capacity of 80 MW. Data4 has emphasized that these new facilities will leverage their efficient and adaptable model to accommodate the growth of their customers. Moreover, in October 2023, Telehouse, an internationally recognized provider of colocation services, declared the commencement of construction for a second data center at its TH3 Paris Magny location in France. The data center will offer a substantial IT floor space measuring 12,000 square meters and an electrical power capacity of 18 MW. The company's decision to expand its infrastructure in this manner aligns with its strategic objective of enhancing European and national digital independence by augmenting hosting and connectivity provisions at its existing European facilities, thereby attracting global internet traffic to the region. Such developments are expected to boost the overall Europe data center construction market growth in Europe.

Factors such as the increasing data processing demands and growing technological advancements are facilitating the expansion of the Germany data center construction market share. The Germany data center construction market size is expected to reach US$ 17.77 billion by 2030. Major players in the market are investing in acquisitions and expanding their data center capacity to meet the growing demand. For instance, in January 2023, CyrusOne acquired an office complex in Frankfurt, Germany, with plans to convert it into a data center campus. The office complex was sold by the investment group Corum for EUR 95 million (US$ 102.3 million). Additionally, the introduction of legislation in Germany highlights the country's commitment to regulating and optimizing data center operations. Germany is the first country in Europe to introduce serious legislation relating to data centers. This regulation aims to address various aspects of data center operations, including energy efficiency, environmental impact, and security. Moreover, NorthC, a prominent player in the data center industry, has announced its plans to develop a state-of-the-art data center facility in Frankfurt, Germany. This will mark the company's first venture into the Germany market. With a planned capacity of 5 MW, the new facility in Frankfurt will cater to the increasing demand for data center services in the country.

Data Center Construction Market Key Player Analysis:

Rittal GmbH & Co KG, Schneider Electric SE, DPR Construction Inc, INFINITI IT Ltd, blu-3 (UK) Ltd, Datalec Power Installations Ltd, Coromatic AB Sweden, Winthrop Technologies Ltd, Mercury Engineering Ltd, and STO Building Group Inc are among the prominent players profiled in the data center construction market report.

Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the data center construction market. A few recent key data center construction market developments are listed below:

• On February 2023, Mercury announced that it is working as the prime contractor on Global Technical Realty's (GTR) G.B. One data center campus near London, UK. Located on the Slough Trading Estate – one of Greater London's data center hotbeds – this 40.5MW facility will be the largest of its kind in the area upon full build-out. Designed with sustainability in mind, Mercury's team is working to deliver G.B. One to Leadership in Energy and Environmental Design (LEED) certification.
• On February 2023, Coromatic, the leading supplier of mission-critical infrastructure for secure power supply and data communication, was commissioned to design, build, and deliver the mission-critical equipment for Conapto's new data center in southern Stockholm. 

Europe Data Center Construction Report Scope