Data Center Power Market in Europe- Industry Outlook and Forecast 2020-2025

Data Center Power Market in Europe- Industry Outlook and Forecast 2020-2025

  • May 2020 •
  • 280 pages •
  • Report ID: 5893054 •
  • Format: PDF
In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Data Center Power Market in Europe Report

The Data Center Power Market in Europe is expected to grow at a CAGR of over 1% during the period 2019–2025.

The data center power market in Europe has been witnessing strong growth with an increase in power infrastructure spending and the development of multiple large data center facilities with power capacities of 50 MW. The market witnessed investments in more than 140 projects in 2019, which are expected to be operational before June 2020. The implementation of GDPR, which is the EU law on data protection and privacy policy, has increased the investment in data centers. Colocation providers are the main revenue generators for the market. Most data centers are designed to be flexible and can be configured to support up to 2N redundant UPS systems, rack PDUs, and dual incoming power feeds. Over 70% of colocation facilities can be configured based on customer requirements. The use of renewable energy is likely to increase the focus on the design of data centers, redefine the installation and commissioning process, and increase physical security requirements in case of on-site power generation.

The spread of COVID-19 has affected major data center operations across Europe with the UK, Germany, the Netherlands, France, and Ireland being the most affected. Many data center countries in Europe have halted their work. For instance, the government of France has stopped all non-essential construction projects to avoid the spread of the virus. However, in Germany and Ireland, construction works continue, where the contractors are requested to take precautionary measures to avoid infection and spread. In the UK, according to the Civil Engineering Contractors Association (CECA), the government has agreed to continue construction works as long as it follows the guidance of Public Health England (PHE). Hence, the outbreak of pandemic is expected to hamper the growth of the data center power market in 2020.

The following factors are expected to contribute to the growth of the data center power market in Europe during the forecast period:
• Increased Investments in Data Centers by Colocation Operators
• Innovations in UPS Battery Technology
• Availability of Power Resources & Tax Incentives
• Adoption of Lithium-ion Batteries in Data Centers

The report considers the present scenario of the data center power market in Europe during the forecast period and its market dynamics for the forecast period 2020?2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The report profiles and examines leading companies and several other prominent companies operating in the market.

Data Center Power Market: Segmentation

This research report includes detailed market segmentation by Infrastructure, UPS System, Generators, Tier Standards, and Geography. Innovations and advances in UPS batteries are aiding the growth of the data center power market in Europe. The adoption of lithium-ion batteries is likely to significantly increase during the forecast period as their price is expected to decline. A service provider in Germany UPS market are adopting 11.6 MW generators and UPS systems with 7.5 MW capacity in N+1 redundant configuration. Similarly, service providers are installing static UPS systems with N+1 redundancy and >1.5 MW standby generator systems with N + 1 redundancy. In France, enterprises have adopted UPS systems in 2N redundant configuration and backup generators in a N+1 redundant configuration. The market is witnessing the adoption of UPS redundancy with N+1 backup generators and 48 hours of fuel storage. These data center operators also adopt standard redundancy for PDUs, transfer switches, and other power infrastructure.

Vendors are offering several UPS systems with power capacities of <=500 kVA. These systems are mostly adopted at the rack level. The market for these systems is higher among small- and medium-sized data centers. The growth of <=500 kVA UPS systems will be higher among prefabricated data center operators than traditional brick-and-mortar facilities. DC UPS systems are likely to be high huge potential in the data centers market.

Western Europe is dominating the generators market. The market for small generators in Europe is low due to the construction of large and medium data center facilities, which consume high power. The market will also witness the adoption below 1 MW generators with the increasing deployment of edge data center facilities during the forecast period. Some countries in the Central and Eastern Europe region procure small generators because multiple facilities are being deployed with a capacity of less than 1 MW. These regions are witnessing multiple modular data center installations. The use of portable generators is also growing in the market.

A majority of under-developed projects across the globe fall under the Tier III category. There are more than 100 data center projects that are open and under construction fall in the Tier III category. This trend is likely to continue during the forecast period, with several operators expected to move to the Tier IV category based on the growth in the rack power density and critical data center applications. Western Europe is the most dominating region with more than 80 data center projects with Tier III design followed by the Nordic region with over 15 data center projects and Central & Eastern Europe. Most new data centers are designed to be of Tier III standards with a minimum of N+1 redundancy and can be reconfigured with up to 2N+1 redundancy as the need arises, with the incorporation of flexible data center designs. Tier IV data centers are being developed as modular facilities. These facilities generate more revenue for the market, with focused investment on highly efficient cooling systems. Tier IV facilities adopt 2N+1 cooling units. Increased investments from hyperscale service providers are expected to be a significant boost to the Tier IV data center market during the forecast period.

Market Segmentation by Power Infrastructure
• UPS Systems
• Generators
• Transfer Switches & Switchgears
• Power Distribution Units (PDU)
• Others
Market Segmentation by UPS Systems
• <=500 kVA
• 500¬–1,000kVA
• >1,000kVA
• <=1MW
• 1¬–2MW
• >2MW
Market Segmentation by Tier Standards
• Tier I &II
• Tier III
• Tier IV

Insights by Geography

Several data centers in Western Europe are built to support OCP rack infrastructure solutions and higher rack power density, which increases the investment for modular power infrastructure. This is aided by the growth of power infrastructure providers in the market. Germany has attracted the highest investment, followed by the Netherlands, the UK, France, and Ireland. The demand for smart devices, coupled with growing internet penetration, will fuel the growth of data centers and corresponding power infrastructure in the region.

Key Regions Profiled
• Western Europe
o UK
o Germany
o Netherlands
o France
o Ireland
o Other Countries
• Nordic
o Denmark
o Norway
o Sweden
o Finland & Iceland
• Central & Eastern Europe
o Russia & Czech Republic
o Poland & Austria
o Other Countries

Key Vendor Analysis
The data center power market is witnessing increasing competition among power infrastructure providers. It is becoming competitive with power solution providers offering innovative products to offer maximum efficiency and reliability. Data center operators are more susceptible to procuring energy-efficient power infrastructure solutions. ABB, Eaton, Schneider Electric, and Vertiv are the leading power players. Cummins and Caterpillar have a strong presence in the market. There are also multiple vendors with a strong presence in a specific country and have partnerships with several service providers in the region.

Key Company Profiles
• Caterpillar
• Cummins
• Eaton
• Schneider Electric
• Vertiv
• Euro-Diesel (KINOLT)
• MTU On Site Energy (Rolls-Royce Power Systems AG)

Other Prominent Vendors
• AEG Power Systems
• Artesyn Embedded Technologies (Advanced Energy)
• Black Box Network Services (AGC Networks)
• Chatsworth Products
• Cisco Systems
• Cyber Power Systems
• Delta Group
• Fuji Electric
• Generac Power Systems
• Hewlett Packard Enterprise (HPE)
• Hitech Power Protection
• Hitzinger
• Legrand
• Mitsubishi
• Panduit
• Piller Power Systems
• Pramac
• Riello UPS
• Rittal
• Socomec
• Toshiba
• Yanmar Group (HIMOINSA)

Key Market Insights Include
The report provides the following insights into the data center power market in Europe during the forecast period 2020–2025.
1. It offers comprehensive insights into current industry trends, trend forecast, and growth drivers about the market.
2. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
3. It offers a complete overview of market segments and the regional outlook of the data center power market.
4. The study offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.

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