Latest News- Data Center Colocation Market in Western Europe: Retail colocation is expected to lead the Type segment during 2025-2029

The Data Center Colocation Market in Western Europe is being driven by Rising demand for data center colocation facilities

The Data Center Colocation Market in Western Europe is expected to grow at a CAGR of 19.1% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 14.14 billion. In Western Europe, the data center colocation market is witnessing significant innovation as traditional data centers face escalating energy costs, particularly those related to power and cooling systems. These systems account for approximately 30-40% of a data center's total power consumption. To mitigate these expenses, service providers are exploring options to relocate data centers to cooler climates, such as Iceland and Norway. Additionally, advanced cooling techniques like free cooling and liquid immersion cooling are being adopted to minimize energy usage. Microsoft's submarine data center, located several feet below sea level off the coast of Scotland, is an exemplary innovation in this regard, offering a cost-effective and energy-efficient solution to data center infrastructure. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Type
  • Retail colocation
  • Wholesale colocation
• End-user
  • Small and medium sized enterprises
  • Large enterprises
• Industry Application
  • Retail
  • BFSI
  • IT and telecom
  • Healthcare
  • Others
• Business Segment
  • Tier 1
  • Tier 2
  • Tier 3
  • Tier 4
• Geography
  • Western Europe

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

• Rising demand for data center colocation facilities
• Increase in business operational needs
• Growing number of mergers and acquisitions (M and A)

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

• Focus on data center consolidation
• Emergence of containerized data centers
• Adoption of mini data centers

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Market Scope in Data Center Colocation Market in Western Europe Research Report

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Research Analysis Overview

The Data Center Colocation Market in Western Europe is witnessing significant growth with key locations in Reykjavik, Milan, Warsaw, Prague, Vienna, Madrid, and tech hubs like Oslo. SMEs are increasingly opting for Microsoft Azure and Cloud Platform due to OPEX advantages. GDPR and data protection drive demand for infrastructure in Nordic regions. Bosch, Equinix, Interxion, and others are investing in AI, automation, and pattern recognition to cater to economic growth and data generation in this sector. National AI Strategies in the Nordics are further boosting innovation. Key players include DATA4, Nordic data centers, and tech markets in Madrid.

Market Research Overview

Technavio's Data Center Colocation Market analysis for Western Europe is a segment of the broader Global Technology Hardware, Storage, and Peripherals Market, encompassing manufacturers of servers, electronic computer components, data storage components, and peripherals. This market is further divided into cellular phones, personal computers, and other hardware devices. The Global Technology Hardware, Storage, and Peripherals Market size is determined by revenue generated from hardware sales. Key growth drivers include the increasing 4Vs of data - volume, velocity, veracity, and variety - necessitating advanced data storage solutions due to the proliferation of data centers.. 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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Website: www.technavio.com/