Europe Data Center Equipment Market Analysis and Forecast by Size, Share, Growth, Trends 2031

The Europe data center equipment market size is expected to reach US$ 1,73,134.51 million by 2031 from US$ 63,235.19 million in 2024. The market is estimated to record a CAGR of 15.6% from 2025 to 2031.

Executive Summary and Europe Data Center Equipment Market Analysis:

The Europe data center equipment market is segmented into Germany, France, the UK, Italy, Russia, and the Rest of Europe. As digital services continue to grow, data centers have become the backbone of Europe's digital economy. Since 2010, the number of internet users worldwide has more than doubled, and global internet traffic has increased 25-fold (International Energy Agency, 2023). At the same time, innovations such as AI are driving the need for advanced computing solutions. To meet this growing market demand, European data center hubs focus on expansion, increasing their data storage, processing, and computing power. The increase in investments in AI data centers is one of the major factors for the market growth as the demand for advanced computing solutions continues to rise, driven by the growing adoption of AI, machine learning, and big data analytics. For instance, in February 2025, Brookfield Asset Management announced to invest US$ 20.7 billion to develop data centers and AI infrastructure in France over the next five years, as the competition to dominate AI intensifies. In January 2025, DC01UK's planning application for a new state-of-the-art data center was approved by Hertsmere Borough Council's planning committee. DC01UK, when built, will be Europe's largest cloud and AI data center, with up to two million square feet of space, and the location of the data center brings together the key pillars needed to fulfill the existing cloud shortfall and cater to the large increase in demand expected in future years. AI requires substantial computing resources, especially for tasks such as training machine learning models and processing large datasets. This increasing demand for AI capabilities fuels the need for more data centers, which, in turn, drives the demand for essential infrastructure. As a result, there is a growing need for data center equipment in Europe. The development of a new Government Data Centre, backed by ~US$ 40 million in grant funding, aims to provide a high-quality, efficient facility that meets current and future government needs. Located at the Backweston Campus, the data center will be at least twice as efficient as existing public service facilities and operate in an environmentally friendly way, including reusing waste heat for other buildings. The project's completion is expected by December 2025. This initiative will not only reduce greenhouse gas emissions but also create a significant demand for advanced data center equipment, such as energy-efficient servers, cooling systems, and power management solutions.

Europe Data Center Equipment Market: Strategic Insights

Europe Data Center Equipment Market Segmentation Analysis:

Key segments that contributed to the derivation of the Europe data center equipment market analysis are equipment type and tier type.

• By equipment type, the Europe data center equipment market is segmented into servers, storage devices, cooling equipment, power distribution units (PDUs), racks, enclosures, and others. The servers segment held the largest share of the market in 2024.

• By tier type, the Europe data center equipment market is segmented into tier 3, tier 4, tier 1, and tier 2. The tier 3 segment held the largest share of the market in 2024.

Europe Data Center Equipment Market Players Density: Understanding Its Impact on Business Dynamics

The Europe Data Center Equipment 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.

Europe Data Center Equipment Market Outlook

Various industries are incorporating high-performance computing (HPC), big data analytics, AI and machine learning, and real-time simulations to enhance customer experience, bolster cybersecurity measures, and revolutionize their business processes. The deployment of these technologies and the optimization of their value necessitate robust infrastructure capable of handling increasingly complex workloads. The computer-intensive nature of AI model training has driven the evolution of hardware to meet the escalating demands of AI and other advanced applications.

This recent boom in computer-intensive workloads such as HPC, AI, and generative AI has had a significant impact on data center workloads. These workloads are driving up the development of new equipment with higher thermal design power, higher rack power densities (50+kW, 100+kW, 300+kW per rack), advanced networking, and more efficient cooling and power solutions. In addition, large-scale AI training, autonomous vehicle development, and genomic sequencing all rely on high-performance computing environments, which require robust data center equipment capable of handling massive data throughput and extreme thermal loads. This is pushing enterprises to invest heavily in next-generation hardware, such as liquid-cooled server racks and advanced networking, to optimize performance and energy efficiency. A few instances are given below.

• In April 2025, Dell Technologies announced the launch of a suite of infrastructure advancements across its server, storage, and data protection portfolios, aiming to accelerate data center modernization for the AI era. With enhancements to its PowerEdge, PowerStore, PowerScale, PowerProtect, and ObjectScale product lines, Dell promises higher performance, improved sustainability, and simplified management for both modern and traditional workloads.

• In December 2024, Amazon Web Services, Inc. announced new data center components aimed at supporting the next generation of AI innovation and meeting the evolving needs of its customers. These advancements incorporate innovations in power management, cooling systems, and hardware design to create a more energy-efficient data center.

• In October 2024, Huawei Digital Power showcased a comprehensive data center facilities solution at the Data Center World Asia-a technology event. These solutions included the PowerPOD 3.0, an integrated power supply solution designed to save space, reduce power consumption, save time, and provide a hassle-free experience; SmartLi, a highly reliable lithium battery solution with 10-layer protection for five levels (cells, modules, packs, cabinets, and system); an air-liquid hybrid cooling solution with cooling distribution unit (CDU) and indirect evaporative cooling that achieves zero cooling interruption and flexibly meets various servers cooling requirements; and the FusionDC1000C, a prefabricated modular data center solution that integrates power supply, efficient cooling and smart O&M.

Thus, the growing reliance on computing intensive workloads across industries is transforming the data center sector, spurring innovation and investment in equipment that can deliver higher performance, greater scalability, and improved energy efficiency.

Europe Data Center Equipment Market Country Insights

Based on country, the Europe data center equipment market comprises Germany, the UK, France, Italy, Russia, and the Rest of Europe. Germany held the largest share in 2024.

The German Datacenter Association plays a crucial role in driving the data center equipment market in the country by fostering collaboration among operators to strengthen industry growth. Its efforts to improve the visibility of the sector in business, society, and politics help attract investments, influence policy decisions, and promote the development of advanced infrastructure. This drives the demand for state-of-the-art data center equipment, fueling market expansion as operators seek to upgrade and scale their facilities to meet growing digital and data processing needs. Moreover, Germany's focus on quantum technologies, particularly in Bavaria, drives demand for advanced data center infrastructure. In June 2024, IQM Quantum Computers (IQM), a global leader in building quantum computers, announced the opening of its first quantum data center in Munich, Germany, to support industry applications, with plans to place up to 12 quantum computers in the data center. As quantum computing grows, the need for specialized equipment to support high-performance workloads boosts the data center equipment market in Germany, leading to investments in cutting-edge technologies and infrastructure.

Europe Data Center Equipment Market Company Profiles

Some of the key players operating in the market include ABB Ltd, Legrand SA, Schneider Electric SE, Rittal GmbH and Co KG, Eaton Corp Plc, Dell Technologies Inc, Honeywell International Inc, Vertiv Group Corp., Delta Electronics Inc, and Cisco Systems Inc., among others. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

Europe Data Center Equipment Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.

• Industry trade journals and other relevant publications.

• Government documents, statistical databases, and market reports.

• News articles, press releases, and webcasts specific to companies operating in the market.

Note:

All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.

• Enhance the expertise and market understanding of the analysis team.

• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers

• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise