PUBLISHER: The Insight Partners | PRODUCT CODE: 1843333
PUBLISHER: The Insight Partners | PRODUCT CODE: 1843333
The hyperscale data center market in Europe was valued at approximately USD 23.53 billion in 2023 and is projected to grow to around USD 108.29 billion by 2031, reflecting a compound annual growth rate (CAGR) of 21.0% during the forecast period from 2023 to 2031.
Drivers of Growth in the European Hyperscale Data Center Market
The surge in data traffic is a primary driver of growth in the European hyperscale data center market. The increasing number of connected devices and widespread Internet access, along with the declining costs of Internet services, have led to a significant rise in global data storage demands. Businesses are increasingly digitizing their operations to gather more data from customer interactions, supply chains, and internal processes. This trend has prompted cloud-based companies to expand their IT infrastructure within data centers. Additionally, advanced analytics tools, including Python, machine learning, and R programming, are being utilized to process large volumes of data, aiding critical business decision-making. Various industries are now exploring cloud solutions and recognizing the advantages of data center services to meet their cloud-related requirements. Consequently, the rapid growth in data traffic is driving the demand for hyperscale data centers.
Overview of the European Hyperscale Data Center Market
Countries such as Sweden, Spain, the Netherlands, Poland, and Finland are significant contributors to the hyperscale data center market in Europe. Government initiatives aimed at enhancing digitization across various sectors are expected to further boost this market during the forecast period. For instance, Spain is experiencing notable growth in its digital banking sector, with around 28 companies, including both established banks and new digital players, serving over 15 million users through innovative and user-friendly applications. Furthermore, other European nations are also seeing substantial growth in their retail sectors. According to a report by Gemius on e-commerce in 2022, 77% of Polish Internet users engage in online shopping. The number of e-commerce stores in Poland rose from 53,000 in 2021 to approximately 55,000 in 2022, with many businesses registering e-commerce as an additional activity. This increasing digitization in banking and the expanding online retail market are expected to drive the demand for hyperscale data centers, which are essential for real-time data access and storage.
Segmentation of the European Hyperscale Data Center Market
The European hyperscale data center market is segmented based on solutions, end users, industry verticals, and countries:
Key Players in the European Hyperscale Data Center Market
Several leading companies are active in the hyperscale data center market, including:
These companies are at the forefront of providing innovative solutions and services that cater to the growing demands of hyperscale data centers in Europe.