Latest News:- Data Center Colocation Market in Western Europe: Retail colocation is expected to lead the Type segment during 2024-2028

Data Center Colocation Market in Western Europe to grow at a CAGR of 16.83% during 2024-2028

The Data Center Colocation Market in Western Europe is expected to grow at a CAGR of 16.83% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 10416.2 million. In the Data Center Colocation Market of Western Europe, traditional facilities face significant challenges due to the high energy consumption of cooling systems, which account for 30-40% of total power usage. To mitigate these costs, data center service providers are exploring opportunities in cooler regions. Innovative cooling techniques, such as free cooling and liquid immersion, are being implemented to minimize power consumption. Microsoft's submarine data center, situated several feet below sea level off the coast of Scotland, is an exemplary initiative, showcasing the industry's commitment to enhancing efficiency and reducing environmental impact. This cutting-edge solution offers substantial savings on power and cooling expenses, making it an attractive proposition for businesses seeking cost-effective, high-performance data center solutions. 

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The Retail colocation subsegment is expected to dominate the Type segment during the forecast period 

Technavio analysts predict that the Retail colocation subsegment will lead the Type segment during 2024 and 2028 In the Western European market, retail colocation has emerged as a preferred solution for Small and Medium Enterprises (SMEs) seeking to reduce both capital expenditures (CAPEX) and operational expenditures (OPEX) on data center infrastructure. Retail colocation involves renting space for IT equipment, such as servers and storage devices, within the racks, cage, or private suites offered by colocation vendors in large data centers. The popularity of retail colocation is on the rise due to the escalating costs associated with owning and maintaining traditional in-house data centers. This trend is expected to continue, as SMEs increasingly recognize the financial advantages of utilizing third-party colocation facilities under multi-year contracts.

Here are the various ways based on which the market is segmented: 

• Type
  • Retail colocation
  • Wholesale colocation
• End-user
  • Small and medium sized enterprises
  • Large enterprises
• Geography
  • Western Europe

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There are several factors that are causing the market to flourish rising demand for data center colocation facilities

Learn which are the obstacles that the market is experiencing in the way of its growth by accessing the free PDF report

Research Analysis Overview

The Data Center Colocation Market in Western Europe is witnessing significant growth, driven by tech giants like Interxion and Equinix, and the emerging tech markets in the Nordics. With the increasing generation of data and the implementation of National AI Strategies, there is a growing demand for advanced data center infrastructure. Companies like Bosch are investing in pattern recognition and automation, leading to increased data protection and compliance with regulations like GDPR. Colocation revenue in Western Europe is expected to reach new heights, with data centers in cities like Oslo, Nordic, and Madrid becoming key players. OPEX models and Cloud Platforms, such as Microsoft Azure, are increasingly popular among SMEs, driving demand for colocation services. Cities like Vienna, Prague, Warsaw, Milan, and Reykjavik are also emerging as significant data center hubs. The economic growth in these regions is fueling the demand for data centers, making Western Europe an exciting market for data center colocation.

Market Research Overview

Technavio's Data Center Colocation Market analysis in Western Europe is positioned within the broader context of the global Technology Hardware, Storage, and Peripherals Market, which encompasses manufacturers of various IT hardware and peripherals, including cellular phones, personal computers, servers, electronic components, data storage devices, and peripherals. The market size is determined by the revenue generated from sales of these hardware devices, equipment, and components. Key growth drivers for the global Technology Hardware, Storage, and Peripherals Market include the escalating demand for data centers due to the increased adoption of work-from-home technologies in the wake of COVID-19.

The Data Center Colocation Market in Western Europe is experiencing significant growth, fueled by the rising demand for data center colocation facilities. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

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