Western Europe and Nordic Data Center Market - Industry Outlook and Forecast 2021-2026

Western Europe and Nordic Data Center Market - Industry Outlook and Forecast 2021-2026

  • May 2021 •
  • 430 pages •
  • Report ID: 6068335 •
  • Format: PDF
In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Western Europe and Nordic Data Center Market Report

The Western Europe and Nordic data center market by investment is expected to grow at a CAGR of approx. 4% during the period 2020–2026.

The market witnessed supply chain-related challenges in Q1 and Q2 2020 for both IT infrastructure and support infrastructure providers. However, these recovered in Q3 2020. The market growth was aided by previously announced projects and expansions of facilities in a few locations where data centers were deemed essential services. A majority of the demand for data center services is contributed by cloud-based service providers.

The following factors are likely to contribute to the growth of western Europe and Nordic data center market during the forecast period:
• 5G boosting Edge Data Center Investments
• Growing Procurement of Renewable Energy
• Innovative UPS Battery Technology
• Increased Adoption of 200/400 GBE Switch Ports

The study considers the present scenario of Western Europe and Nordic data center market and its market dynamics for the period 2020?2026. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects of the market. It profiles and examines leading companies and other prominent ones operating in the market.

Western Europe And Nordic Data Center Market Segmentation
The Western Europe and Nordic data center market research report includes a detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling technique, cooling systems, general construction, tier standards, geography. In 2020, the IT infrastructure adoption among newly established and existing data centers grew significantly. Germany is the leading market in the IT infrastructure spending, followed by the UK, the Netherlands, France, and Ireland. The emergence of software-defined architectures and converged infrastructure expects to drive the IT infrastructure solutions market in Western Europe. Similarly, the increasing adoption of cloud computing services in the Nordic region leads to increased procurement of IT infrastructure components. Finland, Sweden, and Denmark are the leading contributors to cloud adoption, with 50% of enterprises using cloud computing services.

Several Western Europe facilities have adopted flexible designs to facilitate dual power feeds, 2N redundant UPS and PDU systems, and N+1 generators. The growth of lithium-ion UPS systems is aided by benefits such as reducing the OPEX through lower maintenance costs and decreasing UPS battery failure chances. Vendors are continuously coming out with innovative UPS solutions to boost efficiency and reduce cost. The construction of large and mega data center facilities in Western Europe and Nordics is likely to aid the generators market. DRUPS solutions are likely to witness high demand among data centers, with multiple modules having the capacity of up to 2 MW in N+N redundant configurations.

Several Western Europe data centers support free cooling systems that include adiabatic coolers, evaporative coolers, and free cooling chiller systems. Water-based cooling includes water-treatment plants and systems that can aid water consumption by up to 20%. Most operators procure 45U–52U rack cabinets. The procurement of 42U racks is declining in the market.

Western Europe is the most active market for data center construction in Europe. The increase in data center demand has increased revenue opportunities for contractors and sub-contractors in the industry. A significant data center construction in the region is managed by Europe-based construction service providers, including architects and engineering firms. However, the non-availability of skilled workforce to handle multiple hyperscale projects is a major challenge for several contractors in the region. Hyperscale data center development will be a major boost for contractors and sub-contractors operating in the Nordic region. Most hyperscale projects are built in collaboration with global data center construction contractors and sub-contractors.

Western Europe and Nordic data center market size by tier standards is expected to reach approx. USD 12 billion by 2026, growing at a CAGR of over 5%. There are 112 Tier III certified facilities in Western Europe and Nordic region, with the UK, Spain, Italy, and Lithuania leading the list. Most new data centers are designed to be of Tier III standards with a minimum of N+1 redundancy. The European region hosts around 50 facilities that are Tier IV certified facilities. Denmark, France, Greece, Italy, Luxembourg, the Netherlands, Norway, Spain, Switzerland, and the UK have several Tier IV facilities. These facilities are equipped with at least 2N+1 redundancy in the infrastructure that makes the facility fault-tolerant, with UPS systems and PDUs having 2N+2 redundancy. Facebook, Apple, Google, and Microsoft are major hyperscale developers.

By IT Infrastructure
• Servers
• Storage
• Network
By Electrical Infrastructure
• UPS Systems
• Generators
• Transfer Switches and Switchgears
• PDUs
• Other Electrical Infrastructures
By Mechanical Infrastructure
• Cooling Systems
o CRAC & CRAH Units
o Chiller Units
o Cooling Towers, Dry Coolers, & Condensers
o Economizers and Evaporative Coolers, and Other Units
o Racks
o Other Mechanical Infrastructure
• Racks
• Others Mechanical Infrastructure
By Cooling Technique
• Air-based Cooling Technique
• Liquid-based Cooling Technique
By General Construction
• Core and Shell Development
• Installation and Commissioning Services
• Engineering and Building Designs
• Physical Security
By Tier Standards
• Tier I & II
• Tier III
• Tier IV

The Western Europe data center market is likely to witness growth due to the adoption of cloud services among SMEs, with the increased interest in the digitalization of businesses. The demand for smart devices, coupled with growing internet penetration, will fuel the growth and corresponding infrastructure in the region. Western Europe data centers are built to support OCP rack infrastructure solutions. The UK, the Netherlands, Germany, and France are the leading destinations for data center development.

By Geography
• Western Europe
o UK
o Germany
o France
o Netherlands
o Ireland
o Belgium
o Switzerland
o Luxembourg
o Italy
o Spain
o Other Western European Countries
• Nordic
• Denmark
• Norway
• Sweden
• Finland & Iceland

Western Europe and Nordic data center market consists of several IT infrastructure, electrical, mechanical, and general construction service providers. Huawei Technologies, Super Micro Computers, Atos, and NEC are the major IT infrastructure vendors. Atos experiences strong demand for its infrastructure solutions in the Western Europe and Nordics markets. The data center market by electrical infrastructure has become competitive due to increased interest displayed by operators in procuring energy-efficient infrastructure solutions. Several data center requirements from service operators prompt vendors to develop innovative products with over 90% efficiency in performing data center operations and reducing OPEX by up to 50%. The Western Europe and Nordics data center market comprises several local and global construction contractors, architectural and engineering firms, physical security vendors, and DCIM solutions providers. Revenue opportunities for vendors are high due to the growing construction of hyperscale data centers.

Key Data Center Critical (IT) Infrastructure Providers
• Arista Networks
• Atos
• Broadcom
• Cisco Systems
• Dell Technologies
• Extreme Networks
• Huawei Technologies
• Hewlett Packard Enterprise (HPE)
• Hitachi Vantara
• Inspur
• Inventec
• Juniper Networks
• Lenovo
• MiTAC Holdings
• NEC Corporation
• NetApp
• Oracle
• Pure Storage
• Quanta Computer (Quanta Cloud Technology)
• Super Micro Computer
• Wistron (Wiwynn)

Key Data Center Support Infrastructure Providers
• Airedale Conditioning Systems
• Asetek
• Alfa Laval
• Assa Abloy
• Bosch Security Systems (Robert Bosch)
• Caterpillar
• Cummins
• Delta Electronics
• Eaton
• HITEC Power Protection
• Legrand
• Mitsubishi Electric Corporation
• Nlyte Software
• Piller Power Systems
• Rolls-Royce Power Systems
• Rittal
• Riello Elettronica (Riello UPS)
• Schneider Electric
• Socomec
• Trane Technologies
• Vertiv Group

Key Data Center Investors
• acens Technologies
• Adam
• Aruba
• Bahnhof
• CyrusOne
• Colt Data Center Services (Colt DCS)
• Digital Realty
• DigiPlex
• DATA4 Smart Data Centers
• Equinix
• Echelon Data Centers
• EcoDataCenter
• Facebook
• Google
• Global Switch
• GlobalConnect
• Green Mountain
• Iron Mountain
• Microsoft
• Nexica - Econocom Group
• NTT Global Data Centers
• QTS Realty Trust
• VIRTUS Data Centres
• Telecom Italia Sparkle
• T5 Data Centers
• Vantage Data Centers

Key Construction Constructors
• Arup Group
• Bouygues Construction
• CapIngelec
• DPR Construction
• Deerns
• Fluor Corporation
• Future-Tech
• HDR Architecture
• Jones Engineering
• Kirby Group
• Linesight
• Mercury Engineering
• Mace Group
• M+W Group (Exyte)
• Metnor Construction
• RED-Engineering
• Structure Tone
• Winthrop Engineering and Contracting

1. How big is Western Europe and Nordic data center market?
2. What are the upcoming industry applications for data centers?
3. Which are the major IT companies operating in the Western Europe and Nordic data center market?
4. What are the top trends driving the Western Europe and Nordic data center market?
5. Which segments are expected to grow at the fastest CAGR during the forecast period?
6. How does COVID-19 affect the data center market landscape?

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