Europe Data Center Colocation Market value is estimated to be around USD 10 billion in 2019 and is expected to register a growth of 15% over the forecast timespan.
 

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The Europe market will experience rapid growth with the robust automotive manufacturing industry adopting digital technologies. Mounting data has driven the demand for a robust data center infrastructure for information storage and management. Germany has a strong automotive manufacturing industry with the presence of renowned players such as BMW, Audi, Mercedes Benz, and Porsche. The advent of Industry 4.0 and digitalization will lead to rise in data traffic, surging the demand for efficient data center colocation services.

The ongoing coronavirus negatively impacted new data center construction projects in the first half of 2020 due to stringent lockdown measures imposed in the region. The temporary closure of industries impacted the European economy severely, affecting the data center colocation market. However, with industrial activities regaining traction following the relaxations in lockdown, the colocation industry will witness growth. Also, there is a spur in the use of virtual collaboration platforms and digital learning solutions for remote working and online education, increasing the demand for colocation services.

The rise in small-scale businesses in emerging economies has resulted in the demand for retail colocation services. Retail colocation providers offer rack, cabinets, cage or private data center suite. As small enterprises do not require a dedicated data center due to limited data storage requirements, wholesale colocation services prove to be expensive. Retail colocation offers them the required data center resources for a limited period of time, providing a cost-effective data management solution.

Government initiatives in support of small and medium scale businesses will surge the demand for colocation for data storage and transfer. As SMEs adopt digital technologies to streamline operations and ensure maximum efficiency, the market will witness growth. Colocation service providers in the industry offer the necessary data storage services to businesses while safeguarding scalability and security. Equinix Inc., a data center colocation provider, has around 62 data centers in Europe and the Middle East.

Robust IT & telecom network supports data center colocation market growth. Italy offers vital connection between Europe and Africa through submarine cables. Large carrier neutral data centers in Italy feature state of the art equipment and rich ecosystem, ensuring maximum connectivity and uptime to around 175 service providers. Similarly, the Iberian Peninsula has become a vital hub on the global connectivity map due to its physical location with Mediterranean Europe, Africa, and Northern Europe. There are 15 sub-sea cable systems in Spain, making the Peninsula a major telecommunications hub.

Major players operating in the Europe market include Zayo Group Holdings Inc., China Telecom Corporation Limited, CyrusOne Inc., Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc. and NTT Communications Corporation. Players are focusing on expanding their data center footprint in the region. In October 2019, Cyxtera launched a new facility in the Netherlands and expanded CXD availability in Europe as a part of its ongoing investment to meet growing customer and market demand. The Amsterdam facility will provide 3 megawatts of power and 29,000 square feet of space. The growing demand for robust interconnection capabilities is propelling client demand for enterprise-grade, secure, and well-connected colocation infrastructure solutions.