Data Center Colocation Market in EMEA - Industry Outlook and Forecast 2020-2025

Data Center Colocation Market in EMEA - Industry Outlook and Forecast 2020-2025

  • November 2020 •
  • 492 pages •
  • Report ID: 5587796 •
  • Format: PDF
In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this EMEA Data Center Colocation market report

The EMEA data center colocation market by revenue is expected to grow at a CAGR of close to 8% during the period 2019–2025.

The EMEA data center market is witnessing a significant boost in investment because of the implementation of the GDPR in Europe and the increase in demand for colocation services due to the high adoption of internet-based services among businesses in the Middle East and Africa region. The adoption of cloud-based services has increased as organizations in the region are working from remote locations due to the outbreak of the COVID pandemic. This increase in adoption will lead to a rise in the demand and development of colocation data centers in the region. Colocation service providers will continue to build both retail and wholesale colocation spaces in the region with higher connectivity and availability of power sources.

Colocation providers continue to drive market revenue during the forecast period. The market will also witness the entry of new providers, especially in Western Europe. Also, new colocation service providers are likely to enter in the Middle East and African countries to capture new markets. The market witnessed significant M&A activities in 2019 due to the rise in demand in several businesses, leading data center service providers to sign M&A contracts to expand their portfolio.

The following factors are likely to contribute to the growth of the EMEA data center colocation market during the forecast period:
• Increased Popularity of District Heating Concept
• High Adoption of Renewable Energy among Service Providers
• M&A Activities improving Colocation Market Share
• Increased Demand for Edge Data Centers

The study considers the present scenario of the EMEA data center colocation market and its market dynamics for the period 2019?2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspect of the market. It profiles and examines leading companies and other prominent ones operating in the market.

EMEA Data Center Colocation Market Segmentation
This research report includes a detailed segmentation by electrical infrastructure, mechanical infrastructure, general construction, service type, and geography. The UK, Germany, the Netherlands, France, and Ireland are major contributors to the power infrastructure revenue. Several facilities have adopted flexible designs in Western Europe to facilitate dual power feeds, 2N redundant UPS and PDU systems, and N+1 generator. Colocation investments are likely to push the demand for 500–1,000 kVA UPS systems and >1,000 kVA systems. Generators with >2 MW power capacity are prefeed in the region. Most facilities in the Nordic region are powered through renewable energy with grid stability of over 95%. This reduces the dependence on generator systems, leading to the installation of 2N UPS systems. The use of basic PDUs is comparatively lower, with higher procurement of metered and monitored PDU systems.

Favorable climatic conditions and the availability of renewable resources such as wind energy in the UK have helped data center operators to benefit from free cooling. Most of the data centers built in Germany are adopting free cooling to cool the facility. A major vendor uses redundant water and air-cooled system supported by free cooling with N+1 redundancy and CRAH units with N+1 configuration. Most of the data centers in the Nordic region are cooled through free cooling techniques. The Nordic data center market facilitates free cooling for over 8,400 hours in a year. The use of free cooling systems will continue to add revenue to the market during the forecast period. All the countries in the Central and Eastern European regions support free cooling of the data center for over 6,000 hours a year. Many data centers have been equipped with in-direct evaporative/adiabatic coolers. Few facilities have also adopted water/glycol-based cooling systems along with highly efficient DX-based CRAC systems to cool the facility.

Western Europe is the most active market across the European region for data center construction. Many facilities are being designed and built to cover an area of over 100,000 square feet. The increase in demand for data centers has been a revenue opportunity for multiple contractors and sub-contractors in the market. However, the major challenge for several contractors in the region is the non-availability of skilled professionals to manage multiple data center projects.

Retail colocation services in EMEA are expected to reach over $9.5 billion by 2025. The market is likely to be driven by the increased demand for colocation services from organizations in developing countries. Also, enterprises with the need for geographically distributed capacity and limited budgets are likely to opt for retail colocation. Several existing retail colocation service users are expected to opt for wholesale colocation capacities during the forecast period. The retail colocation market is also likely to face a strong challenge from cloud-based hosting services, especially in the Middle East and Africa region.

Segmentation by Electrical Infrastructure
• UPS Systems
• Generators
• Transfer Switches & Switchgears
• PDUs
• Other Electrical Infrastructure

By Mechanical Infrastructure
• Cooling Systems
o CRAC & CRAH Units
o Chiller Units
o Cooling Towers & Dry Coolers
o Economizers & Evaporative Coolers
o Other Units
• Racks
• Other Mechanical Infrastructure
• Cooling Technique
o Air-based
o Water-based

By General Construction
• Building Development
• Installation & Commissioning Services
• Building Designs
• Physical Security

By Service Type
• Retail
• Wholesale

Insights by Geography
In Europe, the UK, Germany, and the Netherlands dominate the market in colocation investments. Western Europe is witnessing colocation investment contributions from both global and local colocation service providers. The GDPR implementation has driven the demand for data center development among colocation providers in Europe. The market will also witness the continuous adoption of cloud services among SMEs, with the increased interest shown towards the digital transformation of businesses by adopting solutions such as IoT, big data, and artificial intelligence. The Middle East and Africa market is witnessing investments in the colocation data center of over 5 MW. Few providers such as Khazna Data Ceter, Teraco Data Environments, and Africa Data Centers (Liquid Telecommunications) are investing in hyperscale data center capacity.

By Geography
• Western Europe
o UK
o Germany
o Netherlands
o France
o Ireland
o Other Western Europe Countries
• Nordic
o Denmark
o Norway
o Sweden
o Finland & Iceland
• Central and Eastern Europe
o Russia & Czech Republic
o Poland & Austria
o Other Countries
• Middle East
o Other Middle Eastern Countries
• Africa
o South Africa
o Other African Countries

Insights by Vendors
In terms of revenue, Equinix is the leading player in the EMEA market with a market share of about over 15% in 2019, followed by Digital Realty (Interxion) and NTT Global Data Center. Over the last two years, the market has witnessed the entry of several new entrants. These new entrants will provide intense competition to the growth of revenue. The market is likely to witness several mergers and acquisitions, leading to an increase in the market share of existing providers. In terms of colocation revenue, Western Europe dominates the market, with around 70% of the revenue share. In Western Europe, the UK is the leading revenue contributor due to the presence of Equinix, Interxion & Digital Realty, STT GDC (VIRTUS Data Centre), LDeX Group, Global Switch, Telehouse, Colt DCS, CyrusOne, and Next Generation Data (Vantage Data Centre).

Prominent Colocation Service Vendors
• Colt Data Center Services (Colt DCS)
• Digital Realty
• Equinix
• Global Switch
• Interxion
• VIRTUS Data Center
• NTT Communications or NTT Global Data Center
• Teraco Data Environments
Data Center Investors
• 3Data
• Aruba SPA
• ATM Data Center (ATM S.A.)
• Bahnhof
• Batelco (Bahrain Telecommunications Company)
• Bezeq International
• Bulk Infrastructure
• CyrusOne
• Digiplex
• EdgeConnex
• Etisalat Group
• Euclyde
• Fortlax
• GlobalConnect
• Green Datacenter
• Gulf Data Hub
• Hydro66
• Iron Mountain (IO)
• Inwi
• IXcellerate
• Keppel DC
• Khanza
• LDeX Group
• Liquid Telecommunication
• LuxConnect
• Mobily
• Ooredoo
• Scaleway Data Center
• Tieto
• T-Systems
• Verne Global
• Turkcell

New Entrants
• Echelon Data Centers
• Business Overview
• Product Offerings
• Global Technical Realty
• NDC Data Center
• Quality Technology Services (QTS)
• Raxio Data Center
• Vantage Data Center

Key Questions Answered::

What is the EMEA data center colocation market size and growth rate during the forecast period?
What are the factors influencing the growth of EMEA colocation market?
What is the growth of retail colocation services market?
Which regions are the major revenue contributors to the EMEA colocation market?
Who are the leading players in the market, and what is their market share?

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