Latest News- Data Center Market in Europe: Medium and small enterprises is expected to lead the End-user segment during 2025-2029

The Data Center Market in Europe is being driven by Imposition of data protection regulation

The Data Center Market in Europe is expected to grow at a CAGR of 29.7% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 411 billion. In the European data center market, modular solutions have emerged as a preferred choice for businesses seeking agile and scalable IT infrastructure. Modular data centers, which are pre-fabricated and easily deployable, have gained substantial traction over the past five years due to their ability to swiftly adapt to evolving demands. Flexenclosure and Schneider Electric are prominent providers of modular data centers in Europe, catering to clients in both developing and mature markets. The European Union's commercial and governmental initiatives are driving the adoption of modular data centers, making them a pivotal component of the region's digital transformation landscape. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• End-user
  • Medium and small enterprises
  • Large enterprises
• Component
  • IT infrastructure
  • Power management
  • Cooling solutions
  • General construction
  • Others
• Type
  • Hyperscale
  • Retail
  • Wholesale
• Sector
  • BFSI
  • Cloud
  • E-commerce
  • Government
  • Others
• Geography
  • Europe
    • Germany
    • UK
    • France

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Imposition of data protection regulation
• Increasing adoption of big data analytics
• Rising data center construction

However, the market also witnesses some limitations, which are as follows:

• Cyber security issues
• Regulatory compliance
• Focus on data center consolidation

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Market Scope in Data Center Market in Europe Research Report

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Research Analysis Overview

The European Data Center Market is experiencing significant growth due to shifting customer preferences, local special circumstances, and the digitalization of businesses and individual activities. This growth is driven by the need for cost savings, scalability, and flexibility, leading investors to provide growth capital for real estate, infrastructure, and infrastructure investors, cloud vendors, telcos, and co-location companies. Network capacity, cooling equipment, and data center equipment are in high demand, with renewable energy sources such as renewable-energy plants, geothermal energy, and wave energy becoming increasingly important. Advanced cooling systems, computing power, chip designs, and power density are also key focus areas, as edge computing continues to gain traction.

Market Research Overview

The European data center market is a significant segment of the global Internet services and infrastructure market, catering to the unique requirements of businesses and individuals. Customer preferences, local special circumstances, and digitalization drive the demand for advanced data processing solutions. Cost savings, scalability, and flexibility are key factors influencing market growth. Companies offering data center services in Europe provide infrastructure for hosting, cloud networking, and storage solutions, as well as IT security and cloud computing services. Technavio's market analysis calculates the European data center market size based on the combined revenue generated by these providers.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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