Europe Data Center Power Market Landscape 2024-2029

The Europe data center power market by investment is expected to grow at a CAGR of 8.76% from 2023 to 2029.

KEY HIGHLIGHTS

• In the ever-changing world of data center operations, a noticeable trend toward sustainability is growing, pushing the adoption of novel solutions. One such idea is the integration of fuel-cell generators to meet the high-power demands of data center facilities. For instance, NorthC Data Centers installed 500kW hydrogen fuel cells at its new Groningen data center, using green hydrogen for backup power. The company plans to explore this eco-friendly technology at other data centers in the Netherlands.
• AI adoption is skyrocketing across Europe, especially in the FLAPD industry, fueling a rise in AI data centers. To meet the high energy demands, operators like Vantage Data Centers, Telia, CoreWeave, Microsoft, and Equinix may collaborate with power infrastructure vendors in the coming years to find better renewable energy solutions to meet their sustainability needs.
• Due to the ongoing Russia-Ukraine conflict and geopolitical tensions, supply chain disruptions in Europe may extend lead times for data centers and construction, impacting infrastructure availability. Data center operators might explore alternative strategies to minimize these disruptions and mitigate future outages and losses.

SEGMENTATION INSIGHTS

• Diesel generators are still the most popular choice for procurement data centers in the European power market, but some facilities are switching to gas generators. For instance, NorthC Datacenters has chosen INNIO's Jenbacher H2-ready engines for emergency backup power at its new Eindhoven facility. Six of these engines will run on natural gas or hydrogen and provide carbon-free power during grid outages.
• European data center operators increasingly invest in UPS batteries like lithium-ion, Prussian blue sodium-ion, and nickel-zinc. Additionally, VRLA batteries are also gaining popularity in the Europe data center power market.
• In the European region, especially in FLAPD regions, due to rising land and power constraints, governments have banned the construction of data centers, impacting the market of UPS and generators in the data centers market and adopting sustainability fuels and initiatives. For example, in Ireland, EirGrid temporarily halted new data center projects in the Dublin region until 2028 due to grid limitations. New applications will only be reviewed for other areas of the country on a case-by-case basis.
• The Europe data center power market by generator type in the U.K., Ireland, Sweden, and the Netherlands stands out for its innovation in diverse fuel sources like DRUPS, fuel cells, and natural gas. Leading companies, including Hitachi Energy, FuelCell Energy, Bloom Energy, Panasonic, and Toshiba, provide cutting-edge solutions that boost data center efficiency.

The report includes the investment in the following areas:

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgears
• PDUs
• Other Electrical Infrastructure

Segmentation by UPS System Capacity

• <=500 kVA
• 500-1,000 kVA
• >1,000 kVA

Segmentation by Generator Capacity

• 0-1.5 MW
• 1.5-3 MW
• >=3 MW

Segmentation by Generator Type

• DRUPS Systems
• Diesel, Gas & Bi-fuel Generators
• HVO Fuel
• Fuel Cells

Segmentation by Tier Standards

• Tier I & II
• Tier III
• Tier IV

GEOGRAPHICAL ANALYSIS

• Western Europe is a rapidly growing market for data center development, driven primarily by the U.K., Germany, and France. Despite some investment restrictions in Ireland and the Netherlands, there's notable growth in greenfield and modular data centers. The region, however, faces land and power constraints in 2023, especially in FLAPD regions, with Ireland's EirGrid imposing a de facto moratorium on new data centers.
• Data center operators favor the Nordics for their cooler climate, which lowers cooling costs and improves PUE. Additionally, they are partnering with renewable energy providers, like Telia and Telenor's PPA with Better Energy for a Danish solar park, to enhance sustainability and reduce carbon emissions.
• In 2023, data center investments in Central and Eastern Europe surged, particularly in Russia, Norway, and emerging markets like Czechia. The region prioritizes renewable energy, with operators like Orange signing power purchase agreements, such as the recent one with Enertrag for its Polish operations.

Segmentation by Geography

• Western Europe
  • The U.K.
  • Germany
  • France
  • Netherlands
  • Ireland
  • Switzerland
  • Italy
  • Spain
  • Belgium
  • Other Western European Countries
• Nordics
  • Denmark
  • Norway
  • Sweden
  • Finland & Iceland
• Central and Eastern Europe
  • Russia
  • Poland
  • Austria
  • Czechia
  • Other CEE Countries

VENDOR LANDSCAPE

• The Europe data center power market is highly competitive, with major players like ABB, Eaton, and Schneider Electric leading in power infrastructure. In 2023 and 2024, Cummins and Caterpillar will dominate the Europe data center power market generator segment.
• Data centers across Europe increasingly prefer battery types like lithium-ion, nickel-zinc, VRLA, and Prussian blue sodium-ion for their UPS systems in data centers.

Key Data Center Support Infrastructure Providers

• ABB
• Caterpillar
• Cummins
• Eaton
• Legrand
• Rolls-Royce
• Schneider Electric
• Vertiv

Other Prominent Vendors

• AEG Power Solutions
• Aggreko
• Aksa Power Generation
• AMETEK Powervar
• Anord Mardix
• Artesyn Embedded Power (Advanced Energy)
• Aten
• Austin Hughes Electronics
• BACHMANN
• BENNING Elektrotechnik Und Elektronik
• Borri
• Canovate
• CENTIEL
• Chatsworth Products
• Cisco Systems
• Controlled Power Company
• Cyber Power Systems
• Dataprobe
• Delta Electronics
• Detroit Diesel
• EAE Elektrik
• Enconnex
• Enlogic
• EverExceed Industrial
• Exide Technologies
• Fuji Electric
• Generac Power Systems
• General Electric
• Genesal Energy
• Hewlett Packard Enterprise
• HIMOINSA (Yanmar)
• Hitachi Hi-Rel Power Electronics
• HITEC Power Protection
• HITZINGER
• Huawei
• INNIO
• KEHUA Data (KEHUA Tech)
• KOEL (Kirloskar)
• Kohler
• Marathon Power
• Mitsubishi Electric
• MPINarada
• Natron Energy
• Panduit
• Piller Power Systems
• Plug Power
• Powertek
• Pramac
• Riello Elettronica
• Rittal
• SAFT(TOTAL)
• Shenzhen KSTAR Science & Technology (KSTAR)
• Siemens
• Socomec
• SolarEdge Technologies
• Thycon
• Toshiba
• VYCON
• WTI - Western Telematic
• ZAF Energy Systems
• ZincFive

KEY QUESTIONS ANSWERED:

1. How big is the Europe data center power market?

2. What is the growth rate of the Europe data center power market?

3. Which country holds the most significant Europe data center power market share?