PUBLISHER: The Insight Partners | PRODUCT CODE: 1597101
PUBLISHER: The Insight Partners | PRODUCT CODE: 1597101
The Europe data center construction market was valued at US$ 54,813.00 million in 2022 and is expected to reach US$ 96,516.99 million by 2030; it is estimated to register at a CAGR of 7.3% from 2022 to 2030.
Growing Construction of Tier 4 Data Centers Drives Europe Data Center Construction Market
A Tier 4 data center is the highest certification in the Uptime Institute's system of segmenting data center performance into four tiers. This tier accounts for an expected uptime of 99.995% per year. Tier 4 data centers provide the highest level of uptime and fault tolerance, making them ideal for mission-critical applications such as financial services, healthcare, and telecommunications. As these sectors grow and digitalization continues, the demand for Tier 4 facilities rises, which boosts the number of new construction projects.
Additionally, Tier 4 data centers command premium pricing compared to lower tiers due to their advanced infrastructure and stringent operational requirements. This leads to higher profits for construction companies and data center operators, attracting significant investment for construction of new data centers. The construction of Tier 4 data centers requires expertise from various industries, including electrical and mechanical engineering, construction materials, and specialized IT equipment. This stimulates growth in these related industries, creating additional employment opportunities and economic benefits. Furthermore, companies such as EBRC comprise several tier 4 data centers named Resilience Centre West, CTRLS Datacenters Ltd., Windhof, Resilience Centre South, Kayl, European Reliance Centre East, Betzdorf, and Sunbird Inc. Thus, the growing construction of Tier 4 data centers is expected to present a promising opportunity for the Europe data center construction market growth during the forecast period.
Europe Data Center Construction Market Overview
The data center construction market is experiencing growth due to factors such as the strength of the European economy, the rise in demand for cloud computing, and the increased reliance on digital technologies. The market encompasses various infrastructure types and offerings, including electrical infrastructure, mechanical infrastructure, general infrastructure, solutions, professional services. Several companies are actively involved in the data center construction market in Europe. For instance, in October 2023, Data4, a data center operator based in France, enlisted the services of Hill International to oversee the development of a new campus in San Agustin de Guadalix, Spain. The project, known as MAD2, will span across a 6.5-hectare site and encompass four data centers with a combined capacity of 80 MW. Data4 has emphasized that these new facilities will leverage their efficient and adaptable model to accommodate the growth of their customers. Moreover, in October 2023, Telehouse, an internationally recognized provider of colocation services, declared the commencement of construction for a second data center at its TH3 Paris Magny location in France. The data center will offer a substantial IT floor space measuring 12,000 square meters, along with an electrical power capacity of 18 MW. The company's decision to expand its infrastructure in this manner aligns with its strategic objective of enhancing European and national digital independence by augmenting hosting and connectivity provisions at its existing regional facilities, thereby attracting global internet traffic to the region. Such developments are expected to boost the data center construction market growth in Europe during the forecast period.
Europe Data Center Construction Market Revenue and Forecast to 2030 (US$ Million)
Europe Data Center Construction Market Segmentation
The Europe data center construction market is segmented based on types of construction , tier standards , industry verticals , and country.
Based on types of construction, the Europe data center construction market is segmented into general construction, electrical design, and mechanical design. The electrical design segment held the largest share in 2022.
In terms of tier standards, the Europe data center construction market is segmented into tier 1 & tier 2, tier 3, and tier 4. The tier 3 segment held the largest share in 2022.
By industry verticals, the Europe data center construction market is segmented into IT & telecommunication, BFSI, government, education, manufacturing, retail, transportation, media & entertainment, and others. The IT & telecommunication segment held the largest share in 2022.
Based on country, the Europe data center construction market is categorized into Germany, France, UK, Sweden, and the Rest of Europe. The Rest of Europe dominated the Europe data center construction market in 2022.
Rittal GmbH & Co KG, Schneider Electric SE, DPR Construction Inc, Mercury Engineering Ltd, STO Building Group Inc, AECOM, Turner Construction Co, and Eaton Corp Plc are some of the leading companies operating in the Europe data center construction market.