Data Center Server Market in Europe to exceed USD 25 Bn by 2027

Europe data center server market is experiencing notable progress lately because of sharp rise in the number of people using the internet for various purposes. According to a report released by the International Telecommunication Unit (ITU), the percentage of citizens in the region using the internet grew from 77.4% in 2017 to 82.5% in 2019. Different online services are increasing in demand along with the need to have large storage spaces for accommodating millions of data transfers done in a day. It has led to the construction of hyper-scale data centers. The companies need to have efficient and high-performing servers to maintain the functionality of the networks.

The current COVID-19 pandemic has created a severe impact on the demand for data servers in Europe. Governments across the region imposed several movement restrictions and lockdowns to contain the spread of the deadly virus. This decision heavily impacted the movement of raw materials and affected the functioning of SMEs and data center technology providers. It had a lasting influence on the research and development activities conducted by many organizations to introduce advanced technologies and innovations in data center solutions.

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However, the pandemic had a positive effect on the regular functioning of various industries as well. It forced organizations to turn to remote working facilities so that they can get their work done. The OTT services, which provide online entertainment in the form of TV shows and movies, gained massive momentum during the lockdown period due to the shutting down of theaters and multiplexes. All these aspects have created good opportunities for the development of data center server market in Europe.

Data center server market in Europe will grow with the demand for colocation data centers. This kind of data center rents out rack space, bandwidth and equipment to third parties for various purposes. It is known as a ‘carrier hotel’ as well and is becoming quite popular among customers because the colocation providers have sound technical expertise. This expertise can come in handy for consumers if they face any server problems. Advanced applications such as machine learning, artificial intelligence and cloud computing require high-performing data centers so that they are efficient in operating computers carrying heavy amounts of data.

In February 2021, real-estate investment trust company Equinix launched its second xScale data center called PA9x in Paris which is now being fully leased by a hyper-scale customer. This data center offers around 29,600 sq. ft. of colocation space and provides nearly 10 megawatts of power to high-end tenants.

Europe data center server market will witness rapid application across the IT & telecom sector in the future. One of the major reasons for this is rise in the number of businesses turning to colocation services that provide cooling, power & space and physical security to storage units, servers and other networking equipment. As per a report by Cloudscene, the Netherlands, the UK, Germany and France possess the highest number of colocation data centers. These nations are responsible for nearly 74% of the total investment made towards data center projects from 2014 to 2020, with the UK having the largest share of investors at 40%.

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Data center server market will grow at a significant rate in Europe because of the rise in the percentage of people using online banking services for deposits, withdrawals, loan applications and various other purposes. Digital banking has made the lives of customers easier and has helped banks improve their overall performance by providing personalized services to their clients. Banks require high-quality and smooth functioning data centers to ensure that their online banking operations are not hampered.

Some of the top companies engaged in providing data center servers to customers across Europe are Atos SE, Dell Technologies Inc., Cisco Systems, Fujitsu Limited, HP Enterprise and many others.

Table of Contents (ToC) of the report:

Chapter 1   Methodology and Scope

1.1    Research methodology

1.2    List of data sources

1.2.1    Secondary

1.2.2    Primary

Chapter 2   Market Snapshot

2.1    Europe data center server market snapshot

Chapter 3   Europe Data Center Server Market Trends

3.1    Industry coverage

3.2    Industry size, 2017 – 2027

3.3    Impact of COVID-19 pandemic

3.4    Value chain analysis

3.4.1    Company product snapshot

3.5    Innovation landscape

3.6    Regulatory norms & directives

3.7    Drivers & restraints

3.7.1    Market drivers

3.7.2    Market restraints

3.8    Industry analysis – Porter’s

3.9    Competitive benchmarking, 2020

3.9.1    Strategy dashboard

3.10    PEST analysis

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