Europe Data Center Construction Market Size & Forecast | 2030

Europe Data Center Construction Market Size and Forecasts (2020 - 2030), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Types of Construction (Electrical Construction, General Construction, and Mechanical Construction); Tier Standards (Tier 3, Tier 4, and Tier 1 & Tier 2); Industry Verticals (IT & Telecommunication, BFSI, Media and Entertainment, Retail, Manufacturing, Government, Transportation, and Others)

Publication Month : Feb 2024

  • Report Code : TIPTE100000384
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 132
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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

data-center-construction-market-research-report
Market Size Value inUS$ 54.81 billion in 2022
Market Size Value byUS$ 96.52 billion by 2030
Growth rateCAGR of 7.3% from 2022 to 2030
Forecast Period2022-2030
Base Year2022
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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.

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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. 
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Types of Construction, Tier Standards, Industry Verticals

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

This text is related
to country scope.

Frequently Asked Questions


What will be the market size for Europe data center construction market by 2030?

The Europe data center construction market is expected to reach US$ 96.52 billion by 2030.

Which country/region is holding the major market share of Europe data center construction market?

The rest of Europe held the largest market share in 2022, followed by Germany and UK.

Which is the leading type of construction segment in the Europe data center construction market?

The electrical construction segment held largest market share in 2022 and it is expected to grow with the highest CAGR during the forecast period 2023-2030.

Which are the key players holding the major market share of Europe data center construction market?

The key players, holding majority shares, in Europe data center construction market includes DPR Construction Inc., Mercury Engineering Ltd, Winthrop Technologies Ltd, Rittal GmbH & Co KG, and Schneider Electric SE.

What are the future trend of the Europe data center construction market?

Increasing use of green data centers is the future trend of the data center construction market.

What are the driving factors impacting the Europe data center construction market?

Factors such as emergence of edge computing and rapid expansion of IoT services are driving the Europe data center construction market growth.

What is the estimated Europe market size for the data center construction market in 2022?

The Europe data center construction market was valued at US$ 54.81 billion in 2022 and is projected to reach US$ 96.52 billion by 2030; it is expected to grow at a CAGR of 7.3% during 2022–2030.

The List of Companies - Europe Data Centre Construction Market

  1. Rittal GmbH & Co KG          
  2. Schneider Electric SE          
  3. DPR Construction Inc         
  4. INFINITI IT Ltd       
  5. blu-3 (UK) Ltd       
  6. Datalec Power Installations Ltd      
  7. Coromatic AB Sweden       
  8. Winthrop Technologies Ltd              
  9. Mercury Engineering Ltd                  
  10. STO Building Group Inc

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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