EMEA Micro Data Center Market Segments and Growth by 2031

The EMEA micro data center market size is expected to reach US$ 3.15 billion by 2031 from US$ 1.14 billion in 2023. The market is estimated to record a CAGR of 13.5% from 2023 to 2031. Rising demand for edge computing  is likely to remain a key market trend.

EMEA Micro Data Center Market Analysis

Rising use of connected and IoT devices and growing rollout of 5G have increased the demand for low-latency data processing and storage everywhere, including remote locations in EMEA. This has increased the need for more micro data centers, particularly in remote locations, which is one of the major factors fueling the growth of the micro data center market in EMEA. In addition, micro data centers, with their compact size, can help lower the energy needed for cooling, and their placement near data sources helps minimize the energy lost during long-distance data transfer. This can help the companies to meet their sustainability target, creating an opportunity for the market growth. Furthermore, both Europe and the MEA are witnessing a rise in the number of SMEs, which is expected to propel the growth of the micro data center market during the forecast period.

EMEA Micro Data Center Market Overview

A micro data center is a small-scale modular data center comprising all the computing, storage, networking, power, cooling, and other infrastructure required for a given workload. The majority of micro data centers include server racks, network equipment, servers, and in-rack cooling solutions. Typically, micro data centers support critical loads of no more than 100–150 kW and come in sizes ranging from a single 19-inch rack to a 40-foot shipping container. Due to their compact size, they can be installed in spaces where a standard data center would not be feasible. They are ideal for edge applications, especially in distributed, remote, or unconditioned locations. As the entire system is enclosed into the size of one standard IT rack, micro data centers can be deployed in existing network closets or small server rooms, open office spaces, retail stores, and clinics.

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EMEA Micro Data Center Market: Strategic Insights

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EMEA Drivers and Opportunities

Rise in Demand for Micro Data Centers in Remote Areas

The growing adoption of technologies such as the Internet of Things (IoT) and 5G and the rising content distribution have increased the demand for low-latency data processing and storage. Traditional centralized data centers, such as those utilized by Amazon Web Services (AWS) and Microsoft Azure, were not built to accommodate such use cases. Although these massive data centers facilitate cloud computing and offer economies of scale, they are not able to affordably move data processing near enough to end users in case of distributed workloads. In this situation, micro data centers, which are small in size, can be deployed in areas where a traditional data center is impractical. This enables enterprises to address the low-latency data processing and storage challenge cost-effectively. In addition, it also helps ensure faster response times and improves user experience. As micro data centers can provide real-time data access in remote locations, their demand is increasing in EMEA. Various companies in this region are deploying micro data centers in different remote locations. For instance, in April 2023, Internet Initiative Japan Inc. (IIJ), one of the leading Internet access and comprehensive network solutions providers in Japan, and its wholly owned UK subsidiary IIJ Europe Limited (London) announced that they had started a field trial in Iceland with the cooperation of Landsvirkjun, Iceland's national power company (Reykjavík, Iceland). Under this trial, IIJ has installed a micro data center (MDC) in the Landsvirkjun Írafoss hydropower station in southern Iceland. Thus, the growing deployment of micro data centers for real-time data access in remote locations is driving the EMEA micro data center market

Increasing Demand for Sustainable Data Centers

Businesses are under increased pressure to meet sustainability targets because of investor expectations, customer preferences, legal requirements, and the need to tackle climate change. This change is being driven by stricter environmental regulations, investor interest in green practices for fewer risks and higher profits, and consumer preference for sustainable products. Micro data centers are becoming an essential tool for businesses trying to reach their sustainability goals. As the digital transformation continues, the demand for data processing power rises, highlighting the problem of reconciling technical innovation and environmental responsibility. Micro data centers, with their compact, efficient, and scalable design, provide a means to striking this balance. They can increase energy efficiency, which assists businesses in meeting environmental goals. Their small size lowers the energy needed for cooling, and their placement near data sources helps minimize the energy lost during long-distance data transfer.

Compared to their larger counterparts, micro data centers can make better use of renewable energy sources and cutting-edge cooling systems. Their versatility to varied surroundings makes it easier to link to renewable energy sources such as solar or wind power, resulting in a significant reduction in carbon footprint. Moreover, as per a study conducted by Schneider Electric, edge computing can reduce carbon emissions by up to 60% compared to traditional data centers. Also, the modular design of micro data centers helps promote sustainability by reducing waste. Hence, to meet the sustainability targets, the demand for more sustainable data centers is likely to increase, propelling the growth of the EMEA micro data center market.

EMEA Micro Data Center Market Report Segmentation Analysis

Key segments that contributed to the derivation of the EMEA micro data center market analysis are rack type, organization size, and end user.

• By rack type, the market is bifurcated into single rack and multi rack. The single rack segment dominated the market in 2023.
• By organization size, the market is bifurcated into large enterprises and SMEs. The large enterprises segment dominated the market in 2023.
• Based on end user, the market is segmented into BFSI, retail, IT and telecom, manufacturing, healthcare, and others. The IT and telecom segment dominated the market in 2023.

EMEA Micro Data Center Market Share Analysis by Geography

• The EMEA micro data center market is segmented into major regions: Europe and the Middle East & Africa (MEA).
• The European Union (EU) is planning for the digital transformation of businesses by 2030. The EU has established two major goals: more than 90% of SMEs should achieve a baseline level of digital intensity, and 75% of EU firms should adopt cloud computing services, big data analysis, or artificial intelligence. Thus, the growing adoption of the above technologies in the region is increasing the demand for real-time data processing, storage, and analysis, further fueling the growth of the micro data center market in Europe.

EMEA Micro Data Center Market Regional Insights

The regional trends and factors influencing the EMEA Micro Data Center Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses EMEA Micro Data Center Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

EMEA Micro Data Center Market Report Scope

EMEA Micro Data Center Market Players Density: Understanding Its Impact on Business Dynamics

The EMEA Micro Data Center Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the EMEA Micro Data Center Market are:

1. Eaton Corp Plc
2. Cannon Technologies Ltd
3. SCHÄFER Ausstattungssysteme GmbH
4. Rittal GmbH & Co KG
5. Delta Electronics Inc
6. Datwyler IT Infra GmbH

Disclaimer: The companies listed above are not ranked in any particular order.

EMEA Micro Data Center Market News and Recent Developments

The EMEA micro data center market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the EMEA micro data center market are listed below:

• Intelligent power management company Eaton announced the launch of an innovative new modular data center solution for organizations seeking to rapidly meet the growing requirements for edge computing, machine learning, and AI. Eaton's SmartRack modular data centers can be deployed in a matter of days in facilities such as enterprise or colocation data centers, manufacturing facilities, and warehouses.

(Source: Eaton, Press Release, March 2024)

• Vertiv, a global provider of critical digital infrastructure and continuity solutions, introduced the Vertiv SmartAisle 3, a micro modular data center system that utilizes the power of Artificial Intelligence (AI), providing enhanced intelligence and enabling efficient operations within the data center environment. The SmartAisle 3 can be configured up to 120 kW of total IT load. It is ideal for a wide range of industry applications, including banking, healthcare, government, and transportation.

(Source: Vertiv, Press Release, April 2024)

EMEA Micro Data Center Market Report Coverage and Deliverables

The "EMEA Micro Data Center Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• EMEA micro data center market size and forecast at regional, and country levels for all the key market segments covered under the scope
• EMEA micro data center market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• EMEA micro data center market analysis covering key market trends, regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the EMEA micro data center market
• Detailed company profiles