Europe Data Center Construction Market Size By Infrastructure Type (Electrical Construction, General Construction), By Distribution Channel (Brownfield, Greenfield), By Application (IT and Telecommunication, BFSI), By Geographic Scope And Forecast

Europe Data Center Construction Market Size And Forecast

Europe Data Center Construction Market size was valued at USD 56,571.64 Million in 2022 and is projected to grow to USD 92,257.17 Million by 2030, with a CAGR of 6.43% between 2024-2030.

The increasing demand for data storage and processing capabilities has led to a surge in data center construction projects across Europe. The Europe report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Europe Data Center Construction Market Executive Summary

AI and machine learning are booming, and that's creating a huge thirst for computing power and storage! To keep up, businesses are increasingly turning to the cloud for scalable, flexible, and cheaper IT. This rush to the cloud is fueling the construction of data centers designed to handle the cloud providers' growing needs, ensuring reliable and speedy access to cloud resources. And with AI generating so much more data, the demand for these data centers is only going up.

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The European data centre construction market is really starting to focus on being carbon neutral, which is a big change and shows how serious Europe is about fighting climate change. Data center companies here are waking up to how important it is to shrink their environmental footprint and line up their operations with some seriously ambitious sustainability goals. When you look at the infrastructure Type, the Electrical Construction segment is really the big player, and it's expected to keep growing. Things like modular electrical components and systems are getting more popular in data center design because they can be custom-built for peak performance and are pre-tested to make sure they're super reliable.

When it comes to Application, it's IT and Telecommunications that's really running the show, and we're expecting it to keep growing strong. You can thank things like the Internet of Things (IoT) taking off, and everyone starting to use AI and machine learning more and more. Plus, over in Europe, the telecom sector is poised for some serious growth, thanks to everyone wanting smartphones, 4G, and super-fast broadband. And with all these businesses, both local and global, and especially those in cloud computing, demanding more, companies are busy building out those data center facilities. Speaking of companies, some of the big names in the European data center construction game include IBM Corporation, Cisco Systems, Inc., Lenovo, Schneider Electric, Dell Inc., Juniper Networks, Inc., Rittal GmbH & Co. KG, Oracle, Hewlett Packard Enterprise Development LP, Equinix, Inc., Siemens, Mitsubishi Electric, Legrand, and Johnson Controls.

Europe Data Center Construction Market Overview

The widespread adoption of AI and ML technologies has generated an insatiable need for computational power and data storage capabilities. As organizations in various industries harness the potential of AI and ML to optimize their operations and gain data-driven insights, the construction of data centers has become essential to meet these computational requirements. Consequently, the Europe Data Center Construction Market has seen an unprecedented surge, with businesses making substantial investments in cutting-edge facilities. Furthermore, the migration to cloud-based services has significantly reshaped the data center landscape in Europe.

Enterprises are increasingly embracing cloud solutions to improve scalability, flexibility, and cost-effectiveness in their IT operations. This shift toward the cloud has led to the construction of data centers capable of accommodating the growing demands of cloud service providers, ensuring dependable and low-latency access to cloud resources. In response to these trends, data center construction companies have been innovating and expanding their operations throughout Europe.

However, the shortage of skilled labor hinders the growth of the data center industry market in Europe. The increasing demand for data storage and processing capabilities has led to a surge in data center construction projects across Europe. However, the supply of qualified and experienced workers has not kept pace with this growth. Data center construction necessitates a highly specialized workforce proficient in areas such as electrical and mechanical engineering, HVAC systems, network architecture, and security protocols. Locating individuals with the requisite skills and experience to design, construct, and maintain these intricate facilities has become increasingly challenging.

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Europe Data Center Construction MarketSegmentation Analysis

The Europe Data Center Construction Market is segmented on the basis of Infrastructure Type, Distribution Channel, Application, and Geography.

Europe Data Center Construction Market, By Infrastructure Type

• Electrical Construction
• General Construction
• Mechanical Construction

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Think about itwhen we're talking about Infrastructure Type, we're really talking about three main areasElectrical Construction, General Construction, and Mechanical Construction. Guess what? Electrical Construction led the pack in 2022 and is expected to keep growing steadily. General Construction came in second that year, but get this – it's predicted to see some serious growth! Actually, both General Construction and Mechanical Construction are projected to grow at the highest CAGR. What's driving all this? Simpleeveryone wants data centers to be more efficient, use less power, and be super reliable. That's why you're seeing more and more modular electrical components; they're like custom-built LEGOs for power! Plus, using prefabricated systems when you build or upgrade a data center? That's a smart move. It saves you cash, makes the install way easier, and puts you in charge of your power needs.

Europe Data Center Construction Market, By Distribution Channel

• Brownfield
• Greenfield

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Think about itwhen it comes to where these data centers are built, we're basically looking at two optionsBrownfield (repurposing an existing space) and Greenfield (building from scratch). In 2022, Greenfield projects took the lead and are expected to grow the most over the next few years. Brownfield projects were a close second, also expected to see significant growth. Now, what's so cool about Greenfield data centers? Well, you're starting with a blank slate, often an empty piece of land, to build something perfectly tailored to your company's needs. This means you get to design and customize every single detail! Of course, careful planning is key to making it all work. You've got to think about your company's specific requirements and how to make it as sustainable as possible. Ultimately, the big win with Greenfield is that you get to build your dream data center without having to compromise.

Europe Data Center Construction Market, By Application

• IT and Telecommunication
• BFSI
• Government and Public Sector
• Pharmaceutical
• Others

When we look at how different industries use this stuff, we see the market broken down into areas like IT and Telecommunications, BFSI (that's Banking, Financial Services, and Insurance), Government and Public Sector, Pharmaceuticals, and "Others." Back in 2022, IT and Telecom took the biggest slice of the pie, and they're expected to keep growing steadily. But guess what? BFSI was the runner-up in 2022, and it's actually predicted to grow even faster! All this growth in telecom is fueled by things like the spread of IoT, and the rise of artificial intelligence and machine learning. Plus, with more people using smartphones, 4G, and super-fast internet, there's a huge chance for the telecom market in Europe to really take off. And to keep up with all the demand from businesses and cloud computing users, companies are busy building more and bigger data centers.

Europe Data Center Construction Market, By Geography

• Germany
• Switzerland
• Austria
• Czech Republic
• Bulgaria
• Rest of Europe

Looking at Europe, the Data Center Construction Market breaks down into countries like Germany, Switzerland, Austria, the Czech Republic, Bulgaria, and then "the rest" of the continent. Turns out Germany was the biggest player in 2022, and experts think it'll keep growing fastest. But don't count Switzerland out - it was the second-largest market last year and is also expected to see serious growth! Why Germany? Well, it's in a great spot geographically and has a super reliable Telecommunication network. This makes it perfect for global companies wanting to tap into Europe's market. And with Germany needing more and more data crunching power, they just need more modern data centers. Plus, big companies are investing more to keep up with demand, so Germany's data center market should keep booming for a while.

Key Players

The “Europe Data Center Construction Market” study report will provide valuable insight with an emphasis on the market. The major players in the market are IBM Corporation, Cisco Systems, Inc., Lenovo, Schneider Electric, Dell Inc., Juniper Networks, Inc., Rittal GmbH & Co. KG, Oracle, Hewlett Packard Enterprise Development LP, Equinix, Inc., Siemens, Mitsubishi Electric, Legrand, Johnson Controls, DPR Construction GmbH, AECOM, Gilbane. This section provides a company overview, ranking analysis, company regional and industry footprint, and ACE Matrix.

Company Market Ranking Analysis

Want to know who's leading the pack in Europe's Data Center Construction Market? Our company ranking analysis dives deep into the top 5 players. We don't just pull names out of a hat; we really dig in. The top contenders right now areIBM Corporation, Cisco Systems, Inc., Lenovo, Schneider Electric, Dell Inc., and Juniper Networks, Inc. What makes them stand out? We look at things like their brand value, their complete product lineup (think variations, specs, features, and price points), how big their footprint is across different regions, how well their products are selling, and their piece of the overall revenue pie. We also check out their product portfolio, paying close attention to the tech they're using and any cool new strategies they're trying to boost their presence, both worldwide and in specific areas. Finally, we even consider their distribution network (both online and offline) because that helps us figure out just how well-established they are in various European Data Center Construction Markets.

Company Regional Footprint

The company’s regional section provides geographical presence, regional-level reach, or the respective company’s sales network presence.

All the companies considered for profiling are reviewed similarly under this section. These sections help us to understand the overall Europe Data Center Construction Market presence on a global and country level.

Ace Matrix

This section of the report provides an overview of the company evaluation scenario in the Europe Data Center Construction Market. The company evaluation has been carried out based on the outcomes of the qualitative and quantitative analyses of various factors such as the product portfolios, technological innovations, market presence, revenues of companies, and the opinions of primary respondents.

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