Europe Data Center Market Landscape Report 2025-2030 | District Heating Concept Gains Traction in European Data Centers, Enhancing Sustainability
Research and Markets
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Key trends driving growth include AI adoption, 5G deployment boosting edge data centers, and sustainability initiatives. Major investments are seen in AI infrastructure and renewable energy.
The European Data Center Market was valued at USD 47.23 Billion in 2024, and is projected to reach USD 97.30 Billion by 2030, rising at a CAGR of 12.80%.
FLAP-D markets (Frankfurt, London, Amsterdam, Dublin) lead the sector, but emerging markets like Spain, Italy, and Greece are gaining traction due to space and cost considerations.
Nordic countries are attractive for data center investments, boasting cool climates, renewable energy, and government incentives.
KEY TRENDS
High Adoption of Artificial Intelligence
The integration of artificial intelligence into data centers across Europe has increased, leading to a rise in demand for AI-driven infrastructure. Several industries, including financial services, consulting companies, IT, healthcare, retail, manufacturing, and agriculture, are adopting artificial intelligence to boost their productivity and enhance operational efficiency.
In February 2025, Brookfield Infrastructure Partners and Data4 announced plans to invest over USD 20.7 billion in developing AI infrastructure across France over the next five years.
In October 2024, Microsoft revealed plans to invest over USD 4.8 billion to enhance AI and cloud infrastructure in northern Italy, where industries like manufacturing, healthcare, finance, and agriculture are increasingly adopting AI technologies.
Artificial Intelligence adoption is expected to rise across Europe, driving significant growth in data center development to support increased computing and storage needs.
Increase in 5G Deployments Aiding in Growth of Edge Data Centers
The development of 5G technology is transforming the Europe data center market, leading to increased investments for the development of edge data centers to significantly address the need for low latency and fast connectivity.
In October 2024, Vodafone Germany inaugurated its nationwide 5G Standalone network, covering over 92% of the population by using 700 MHz, 1.8 GHz, and 3.5 GHz frequency bands to support real-time communication.
Edge data center providers like Quetta and EDGNEX Data Centers by DAMAC are rapidly expanding their presence across multiple European nations to support local data processing.
Sustainability Initiatives: Attracting Data Center Operators
As the demand for digital services rises, sustainability has become a focal point in the European data center market. Leaders like Google and Microsoft are pioneering the shift to 100% renewable energy sources and innovative cooling solutions.
Verne Global's transition from diesel to hydrotreated vegetable oil (HVO) at their London facility underscores an industry-wide move to slash CO2 emissions dramatically.
Amazon's renewable energy deals in Greece highlight the drive towards reducing greenhouse gas emissions through sustainable practices.
Rise in the District Heating Concept
District heating is a sustainable solution that distributes centrally generated heat to nearby buildings via insulated pipes and improves energy efficiency by utilizing local renewable energy sources and waste heat.
In April 2025, atNorth, a developer in the Europe data center market, entered into a heat-reuse agreement with Finnish retail group Kesko Corporation to provide waste heat from its FIN02 data center in Espoo to a nearby Kesko store to reduce the store's heating emissions by over 200 tons of CO2 each year.
In January 2025, Queen Mary University of London utilized waste heat from its Tier II data center to heat campus buildings, using a multi-stage heat recovery system developed in collaboration with Schneider Electric and APT.
The district heating system in Europe is significant in advancing sustainability in Europe. Data center operators are incorporating renewable energy sources in district heating systems to enhance sustainability, further drive energy efficiency, and support local economic growth across the region.
Innovative Construction Techniques for Data Centers
The Europe data center market is growing due to technological advancements and the integration of digital services. To address the sustainability challenges in this sector, innovative construction methods are being employed to improve energy efficiency, operational flexibility, and overall data center performance.
European countries have adopted several innovative techniques, including advanced cooling solutions, modular and prefabricated designs, digital twin technology, and the use of sustainable construction materials.
The rapid expansion of data centers in Europe is increasing the need for innovative construction methods that meet the rising demand for digital services while prioritizing sustainability. Europe is focusing on sustainability by adopting energy-efficient technologies, such as promoting modular designs and employing advanced cooling and power infrastructure solutions in data centers.
EUROPE DATA CENTER MARKET SEGMENTATION INSIGHTS
The adoption of HVO fuel as an alternative to diesel in generators is anticipated to grow in the Europe data center market due to its sustainability. Many operators, including Equinix, Digital Realty, STACK Infrastructure, and Green Mountain, have opted to replace diesel with HVO fuel to power their backup generators.
Real-time monitoring software featuring AI automation is expected to gain traction in the forecast period. This technology can help in data center maintenance efficiently and detect component failures to ensure continuous operations.
The implementation of modular power infrastructure, such as containerized power solutions in data centers, is expected to yield long-term cost savings. These systems are more efficient, allowing for space optimization and reducing maintenance requirements.
Adopting Uninterrupted Power Supply (UPS) systems is a key driver, where lithium-ion batteries are gaining traction for backup power.
District heating is the innovative concept that is expected to grow significantly among data center facilities in the Europe data center market. For instance, in January 2025, a new data center development plan was initiated at Erkrath, outside of Dusseldorf, in Germany. The new data center will supply waste heat to support district heating through agreements with the municipal utilities in Erkrath, Germany.
The Nordic countries consist of abundant renewable energy sources, particularly wind power. The favourable climate conditions in this region make it an ideal spot for extensive free cooling, which is beneficial for data centers. These countries offer a minimum of 4,000 hours of annual free cooling, increasing the investments in air/water-side economizers and indirect evaporative coolers.
As the enterprises across various industries are embracing artificial intelligence, data center operators are investing significantly to develop AI-ready data center facilities to meet the growing demands for AI workloads across the region. To manage the heat produced by servers in AI data centers, traditional cooling techniques are insufficient. Therefore, data center facilities will be equipped with liquid cooling techniques to support AI workloads.
EUROPE DATA CENTER MARKET VENDOR LANDSCAPE
The Europe data center market consists of all the leading global and local colocation operators, including Equinix, Digital Realty, CyrusOne, DataBank, Iron Mountain, Green Mountain, Vantage Data Centers, Aruba S.p.A., NTT DATA, Telehouse, VIRTUS Data Centres, and STACK Infrastructure.
The growing demand for data centers will create substantial opportunities for construction contractors in the forecast period. Significant contractors operating in Europe data center market include AECOM, Arup, Astron Buildings, DPR Construction, HDR Architecture,Artelia, Coromatic AB, Ferrovial, YIT, Turner & Townsend, TTSP, Mercury, and Bouygues Construction.
The Europe data center market includes numerous global and local support infrastructure providers such as 3M, ABB, AERMEC, Airedale, Aksa Power Generation, Baudouin, Carrier, Caterpillar, Cummins, Delta Electronics, Eaton, EMICON, HITEC Power Protection, Honeywell, Johnson Controls, Rehlko, Legrand, Mitsubishi Electric, Munters, Perkins Engine, Pillar Power Systems, Riello Elettronica, Rittal, Rolls-Royce, Schneider Electric, Siemens, STULZ, Trane Technologies and Vertiv.
Key hyperscale operators investing in the Europe data center market include Amazon Web Services (AWS), Microsoft, Meta (Facebook), and Google. They are expanding their operations across major data center hubs throughout Europe.
The Europe data center market has seen the entry of several new players, including Blue, Bluestar Datacenter, CloudHQ, dataR, DATA CASTLE, Apto Data Centers, DATA for MED, Form8tion Data Centers, and EDGNEX Data Centers by DAMAC. The arrival of these new entrants could disrupt the market share of existing companies, increasing the competition in the market.
Companies such as Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Extreme Networks, Fujitsu, Hewlett Packard Enterprise, Hitachi Vantara, Huawei Technologies, IBM, Inspur Group, Lenovo, MiTAC Holdings, NEC Corporation, NetApp, Pure Storage, Supermicro, Wiwynn and Quanta Cloud Technology offers IT infrastructure solutions for data centers.
The competition in the Europe data center market among infrastructure providers and construction contractors is expected to increase significantly in the forecast period, with data center operators' investments in the development of sustainable and advanced data center facilities.
IT Infrastructure Providers
Arista Networks
Atos
Broadcom
Cisco Systems
Dell Technologies
Extreme Networks
Fujitsu
Hewlett Packard Enterprise (HPE)
Hitachi Vantara
Huawei Technologies
IBM
Inspur Group
Lenovo
MiTAC Holdings
NEC Corporation
NetApp
Pure Storage
Quanta Cloud Technology
Supermicro
Wiwynn
Prominent Support Infrastructure Providers
3M
ABB
AERMEC
Airedale
Aksa Power Generation
Alfa Laval
AVK
Baudouin
Carrier
Caterpillar
Condair Group
Climaveneta
Cummins
D'Hondt Thermal Solutions
Daikin Applied
Delta Electronics
EATON
EBM-PAPST
EMICON
Enrogen
FlaktGroup
Grundfos
Guntner
GESAB
HiRef S.p.A
HITEC Power Protection
Honeywell
INNIO
JAEGGI Hybridtechnologie
Johnson Controls
Rehlko
KyotoCooling
Legrand
Mitsubishi Electric
Munters
NetNordic Group AS
Nlyte Software
Perkins Engine
Pillar Power Systems
Riello Elettronica Group
Rittal
Rolls-Royce
Schneider Electric
Siemens
Socomec Group
STULZ
Trane
Vertiv
ZIEHL-ABEGG
Prominent Data Center Construction Contractors
ACS Group
AECOM
Altron
AODC
Abbeydale
APL Data Center
ARC:MC
Ariatta
ARSMAGNA GROUP
Artelia
Arup
AtkinsRealis
Aurora Group
Basler & Hoffman
Benthem Crouwel Architects
Bouygues Construction
Bravida
CapIngelec
Caverion
Coromatic AB
Collen Construction
COWI
DataDome
Deerns
The Designer Group
DIPL-ING.H.C. Hollige
Dornan Engineering and Construction
DPR Construction
Engexpor
Equans
EIDA
Exyte (M+W Group)
Eiffage
Ethos Engineering
EYP Mission Critical Facilities
Ferrovial
Fluor Corporation
Future-tech
Generale Prefabbricati S.p.A
Granlund Group
Green MDC
Gottileb Paludan Architects
Haka Moscow
ICT Facilities
IDOM
IMOS
ISG
JCA Engineering
JERLAURE
John Sisk & Son
Kirby Group Engineering
KKCG Group
Linesight
LPI Group
M+W Group
Mace Group
Mercury
Mentor Construction
MiCiM
MT Hojgaard
Nicholas Webb Architects
Norma Engineering
PM Group
PORR Group
PQC
Quark
Ramboll
RED Engineering Design
Reid Brewin Architects
Renco
RKD
Rosenberger
Royal HaskoningDHV
Salboheds
Skanska
SPIE
Starching
STO Building Group
STRABAG
STS Group
Sweco
Techbau
Techko
Tetra Tech
TPF Ingenierie
TTSP
Turner & Townsend
Warbud
Winthrop Technologies
YIT
ZAUNERGROUP
HDR Architecture
CREATE Architecture
RWO Associates
GSE Group
Data Center Investors
3data
3s Group
Aire Networks
Amazon Web Services
Ark Data Centres
ARTNET
Atman
Apple
Aruba S.p.A
AtlasEdge
AQ Compute
atNorth
Atomdata (Rosatom)
Bahnhof
Beyond.pl
Bulk Infrastructure
China Mobile International
Compass Data Centers
Colt Data Centre Services
CyrusOne
Data4
DataCenter United
Datum
DENV-R
Digital Realty
EcoData Center
EdgeConneX
Equinix
Meta (Facebook)
Global Switch
Google
Green Datacenter
Green Mountain
Iron Mountain
IXcellerate
K2 STRATEGIC
Kao Data
Keppel Data Centres
LCL Data Center
Linxdatacenter
maincubes SECURE DATACENTERS
Merlin Properties
Microsoft
MTS
NTT DATA
Penta Infra
Pure Data Centres
Rostelecom
Selectel
STACK Infrastructure
STACKIT
STORESPEED
Switch Datacenters
Telehouse
Thesee DataCenter
Vantage Data Centers
VIRTUS Data Centres
Yondr
New Entrants
Ada Infrastructure
Apto Data Centre
Art Data Centres
Atlantic Data Infrastructure
Best Wonder Business
Blue
Bluestar Datacentre
Castle IT
Ceske Radiokommunikace
CloudHQ
DATA CASTLE
dataR GmbH
DATA for MED
Digital Reef
Eclairion
EdgeNebula
EDGNEX Data Centres by DAMAC
Elementica
Energia Group
Evroc
Form8tion Data Centres
Global Technical Realty
GreenScale
Goodman
Ingenostrum
KEVLINX
Keysource+Namsos DataSenter
Lasercharm
Latos
Mediterra Datacenters
Nation Data Center
Nautilus Data Technologies
Nehos
Nethits' Telecom
OPCORE
PGIM Real Estate
PHOCEA DC
Polar DC
Prime Data Centers
Quetta Data Centers (Azora)
QTS Data Centers
REMOV
SDC Capital Partners
SEGRO
Serve Centric
VITALI
Kasi Cloud
Kemet Data Center (Intro Technology and Oman Data Park)
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