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Home Editor's Pick Market Research

Renewable Energy to Attract in Investments in the Data Center Market

Urja Daily by Urja Daily
October 5, 2021
in Market Research
Reading Time: 5 mins read
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CHICAGO – The emergence of edge facilities will be a major boost to European data center market growth in 2021. The market is expected to grow due to the growing procurement of renewable energy sources. Over 25 European cloud and data center operators, including AWS, Google, Equinix, Interxion, OVH Cloud, etc. have signed an agreement where 75% of the power supplied to data centers in Europe will be supplied through renewable energy or carbon-free energy by December 31, 2025. The objective is to reach 100% by December 31, 2030. This announcement is likely to offer a high impetus to the growth of the data center market in Europe.

Observing these rapid and drastic changes in demand and supply patterns encouraged the industry analysts at Arizton to publish exhaustive and data-driven insights on these current trends in the industry. Arizton has a dedicated vertical that focuses on data centre knowledge base across geographies. These market research reports cover a detailed analysis of the COVID-19-induced supply chain disruptions, innovations in technology, equipment financing, economic impact, and a detailed study of the competitive landscape.

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Netherlands Data Center Market – Investment Analysis and Growth Opportunities 2021-2026

The Netherlands data center market is expected to reach USD 4.52 billion in 2026 growing at a CAGR of 5.3%. The Netherlands is a mature data center market in Western Europe, and forms part of the FLAP markets, acting as a digital gateway to Europe. The country’s data center scene is thriving due to increased digitalization, connectivity, and sustainable development of data centers. The data center market in the Netherlands includes about 47 unique third-party data center service providers operating over 113 facilities. Moreover, the country is witnessing further investments in about 3 new facilities that are expected to be operational over the next 2 years.

Key Highlights

  • About 15 data center projects by colocation and enterprise service providers contributed to over USD 2.7 billion in investments for data center facilities opened in the Netherlands in 2020.
  • In 2020, cities such as Middenmeer, Rotterdam, Eindhoven, Naaldwijk, and Eemshaven witnessed increased data center investments due to low land cost and space availability.
  • Digital and technology companies from around the world have a presence in the Netherlands owing to its strong connectivity and strategic opportunities. This will propel data center growth in the region.
  • Amsterdam, home to major ICT companies and leading start-up ecosystem in the country is a pivotal city for data center investments in the Netherlands. In 2020, Amsterdam was home to over 70% of the total number of colocation data centers built across the Netherlands. Adoption of cloud-based services by SMEs has increased during the pandemic, which is likely to aid data center market growth in the region.
  • In 2020, cloud service provider Google added a data center space of around 500,000 square feet across two data centers, in Groningen and Middenmeer.

Switzerland Data Center Market – Investment Analysis and Growth Opportunities 2021-2026

The Switzerland data center market is expected to reach USD 2.07 billion in 2026 growing with the CAGR of 3.44%. Switzerland is a mature data center market and ranks 12th across the globe in terms of mobile internet speed and fourth in terms of fixed broadband services. The internet penetration in the country is over 95% of the overall population. The major data center investors in the country have been telecommunication providers, enterprises, the government, and cloud and colocation service providers.

Key Highlights

  • There are over 50 data center colocation facilities in Switzerland. The occupancy rate stands at over 80% of installed capacity across cities such as Zurich and Geneva.
  • In 2020, Switzerland attracted most investments from colocation service providers such as Equinix, Digital Realty (Interxion), Vantage Data Centers, and CKW.
  • In 2020, Zurich was the major data center investment destination in Switzerland, followed by Geneva, with other regions such as Lausanne and Bern, among others, also expected to experience strong growth during the forecast period.
  • Retail colocation services dominate the market with an 81% market share, with wholesale colocation contributing to the rest.
  • The adoption of cloud computing technology has experienced considerable growth in Switzerland over the last few years. The adoption of cloud-computing technology in 2020 grew by around 30% from 2019.

Germany Data Center Market – Investment Analysis and Growth Opportunities 2021-2026

The Germany data center market is expected to reach USD 6.46 billion in 2026 growing with a CAGR of 2.35% in the period 2020-2026. Germany has one of the most mature data center markets in Europe. Owing to the implementation of GDPR, investments in the German data center market have increased significantly in the last few years. The Germany data center market research report includes 49 unique third-party data center service providers, operating over 128 facilities. Additionally, the country also hosts several on-premise or dedicated data centers owned by local enterprises. Over the last 5–7 years, the market has grown significantly with an increase in the development of hyperscale data centers.

Key Highlights

  • Germany witnessed an investment of over USD 1.2 billion on data center facilities opened and under construction from January 2020 to June 2021.
  • Industry 4.0 and the Internet of Things (IoT) expect to drive the market growth in the coming years. By the end of 2021, Germany’s IoT spending is likely to cross over USD 45 billion.
  • In 2020, Frankfurt was a key investment destination in the data center market in Germany. Berlin, Hamburg, and Dusseldorf are other destinations that are witnessing high investments during the forecast period.
  • To run data center operations in Germany, electrical energy requirements are likely to rise 16.4 TWh by 2025.
  • NTT Global Data Centers, CyrusOne, Equinix, and Digital Realty are significant contributors to market growth. CyrusOne generated a revenue of USD 67 million in 2020. Digital Realty added a revenue of over USD 200 million. Equinix and NTT Global Data Centers contributed to the market, adding an estimated revenue of USD 150 million and USD 250 million, respectively, in 2020.
Tags: AWScloudData CenterEquinixGoogleInterxionOVH CloudRenewable Energy
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