Europe Data Center Colocation Market Overview and Growth Dynamics

The Europe data center colocation market is projected to expand significantly, growing from $11,407.07 million in 2021 to $33,615.39 million by 2028, at a CAGR of 16.7% during the forecast period. This growth is driven by increasing demand for scalable, cost-effective data infrastructure, the rise of 5G deployment, and the need for edge computing solutions.

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Key Growth Drivers:

• 5G Network Expansion: Telecom operators are rapidly deploying 5G, requiring robust data center infrastructure to support low-latency, high-speed connectivity. Colocation providers enable telecom companies to scale efficiently without heavy capital investments.
• Rising Data Consumption: Surging internet usage and data demands push enterprises toward colocation as a cost-effective alternative to on-premises solutions.
• Edge Computing & AI Integration: Companies like IBM are offering edge computing solutions to help businesses manage workloads efficiently in the 5G era, leveraging AI and analytics for real-time insights.
• Cost Efficiency: Many organizations lack the resources to build private data centers, making colocation an attractive option for accessing state-of-the-art facilities without major upfront investments.

Market Segmentation

The Europe data center colocation market is segmented by type, enterprise size, industry, and country:

1. By Type:

• Retail Colocation (Dominant in 2020) – Ideal for SMEs needing smaller-scale solutions.
• Wholesale Colocation (Fastest-growing) – Preferred by large enterprises and hyperscalers requiring extensive capacity.

2. By Enterprise Size:

• Large Enterprises (Dominant in 2020) – Major adopters due to high data storage and processing needs.
• SMEs (Fastest-growing) – Increasingly leveraging colocation for scalability and cost savings.

3. By Industry:

• IT & Telecom (Dominant in 2020) – Leading sector due to cloud and 5G expansion.
• BFSI (Fastest-growing) – Rising demand for secure, low-latency data solutions.
• Healthcare, Retail, & Others – Also contributing to market growth with digital transformation initiatives.

Competitive Landscape

Key players in the Europe data center colocation market include:

• AT&T Intellectual Property
• CyrusOne, Inc.
• Cyxtera Technologies, Inc.
• Digital Realty Trust LP
• Equinix Inc.
• Global Switch
• NTT Communications Corporation
• Telehouse
• Verizon Partner Solutions

These companies are expanding through strategic partnerships, M&A, and investments in edge computing and AI-driven solutions.

Why Invest in This Report?

• Identify high-growth segments for strong ROI in the European colocation market.
• Stay ahead of competitors with insights into evolving market dynamics.
• Plan M&A and partnerships by analyzing the most lucrative market segments.
• Make data-driven decisions with comprehensive market performance analysis.
• Access revenue forecasts (2021-2028) across segments and regions.

Market Introduction

The data center colocation market in Europe is segmented into Germany, France, Italy, the UK, Russia, and the Rest of Europe. New data centers initiatives are significantly contributing to the growth of Europe’s data center colocation market. For instance, in July 2020, Interxion, a provider of carrier and cloud-neutral colocation data center solutions, announced the first phase of MRS 3, its third data center in Marseille, France to enable the customers in this region to benefit from a 100% uptime service-level agreement (SLA), and thereby focusing on their core business operations rather than managing a data center. Growth in the number of hardware infrastructure suppliers that also offer cloud services, including servers, storage, and network elements is bolstering the regional market growth. Countries such as Germany, the UK, France, and Italy are shifting toward cloud services, leading to the rising establishments of data center colocation, backed by the adoption of Big Data, Industry 4.0, Internet of Things, 5G, and cloud computing. Increased levels of remote working during the pandemic have created a surge in data storage and processing requirements in the region. Soaring adoption of high-performance compute (HPC) is the major factor driving the growth of the Europe data center colocation market.

The impact of COVID-19 differed from country to country across Europe. Each country witnessed an increase in recorded cases and subsequently attracted strict and longer lockdown periods or social isolation. However, Western European countries such as Germany, France, Russia, and the UK have seen a comparatively modest decrease in their growth activities because of the strong healthcare system. The European government has made tremendous investments in incorporating technologies in its healthcare systems to help identify signs of the virus. Due to the sudden outbreak and subsequent lockdowns across Europe, the data center industry witnessed significant changes over the past year. COVID-19 surged the demand for cloud services as consumers spent most of the year working, learning, and entertaining from home like never before. In addition, companies from various industries came with more data space requirements to deploy their operations digitally on virtual space during the pandemic. The sudden spike in the demand for high storage capacity servers and data centers has disrupted the supply chain for Q1 and Q2 of 2020; however, in Q3 of the same year, the market recovered from this problem. Thus, owing to the aforementioned factors the data center colocation market is expected to proliferate during the forecast period.

Europe Data Center Colocation Strategic Insights

Strategic insights for the Europe Data Center Colocation provides data-driven analysis of the industry landscape, including current trends, key players, and regional nuances. These insights offer actionable recommendations, enabling readers to differentiate themselves from competitors by identifying untapped segments or developing unique value propositions. Leveraging data analytics, these insights help industry players anticipate the market shifts, whether investors, manufacturers, or other stakeholders. A future-oriented perspective is essential, helping stakeholders anticipate market shifts and position themselves for long-term success in this dynamic region. Ultimately, effective strategic insights empower readers to make informed decisions that drive profitability and achieve their business objectives within the market.

Market leaders and key company profiles

  AT&T Intellectual Property

  CyrusOne, Inc.

  Cyxtera Technologies, Inc.

  Digital Realty Trust LP

  Equinix Inc.

  Global Switch

  NTT Communications Corporation

  Telehouse

  Verizon Partner Solutions.

Europe Data Center Colocation Regional Insights

The geographic scope of the Europe Data Center Colocation refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.

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Author's Bio
Akshay
Senior Market Research Expert at Business Market Insights