Europe Hyperscale Data Center Market size surpassed USD 8 billion in 2020 and is estimated to witness over 17% CAGR from 2021 to 2027.
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Growing demand for data management solutions in the Europe retail and e-commerce sectors is supporting the hyperscale data center market growth. Retailers use big data to improve their consumers' shopping experiences, boosting the need for a robust IT infrastructure to support the expanding number of retail applications. As buyers expect a more personalized experience through online platforms and local stores, retailers are now using advanced technologies including data analytics, AR, VR, and AI. Customizing a marketing or promotional campaign for each consumer requires a large volume of real-time data storage and computational capacity to handle & evaluate transactions. This is driving the need for hyper-scale data centers that allow retailers to offer advanced services through effective storage and analysis of consumer buying pattern data.
The hyperscale data center rack & enclosure market will gain remarkable momentum during the forecast timeline, due to increase in the adoption of technologies, such as AI, IoT, and robots, in manufacturing facilities. Robotics and machine learning are used in the manufacturing facilities of large automotive manufacturers such as BMW and Mercedes-Benz. This factor drives the demand for powerful data center racks & enclosures that can organize a large IT infrastructure to handle the increasing data volumes.
Automotive production facilities require continuous and effective data processing to make critical decisions based on predictive analysis. The growing need for IT components to be placed in spacious and compact racks & enclosures that provide optimal airflow management and cooling solutions will drive the industry growth.
Increasing demand for colocation services with high power resiliency for large-scale IT environments will impel the Europe hyperscale data center market revenue. This factor is encouraging colocation service providers to expand in Europe.
For instance, in September 2021, Equinix, Inc. opened its International Business Exchange (IBX) data center in Germany. The company invested USD 103 million in the new data center, adding approximately 4,800 m² to its colocation space. The new data center will support the company in meeting the growing demand for digital infrastructure & private connectivity in the country. Hyper-scale data centers are used by colocation service providers as they offer higher bandwidth, mitigate service interruptions, and reduce the total cost of ownership.
The BFSI sector stores sensitive customer information that increases the use of reliable data storage solutions. The need for hyper-scale data centers is increasing as they enable financial institutions & banks to manage massive amounts of data effectively and at high processing speeds.
With the increasing use of digital payment methods, there is a growing need for effective data management systems to store the expanding digital data volume. The increasing number of online transaction activities, such as digital transfers and smart card payments, demands more capacity and throughput, which are offered by hyper-scale data centers.
Some of the leading companies operating in the Europe hyperscale data center market include ABB Ltd., Alphabet, Inc., Amazon Web Services, Broadcom Ltd., Cisco Systems, Inc., Colt Group Holdings Ltd., Corning Incorporated, Dell, Inc., Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Lenovo Group Ltd., Microsoft Corporation, NVIDIA Corporation, Schneider Electric SE, Telefonaktiebolaget LM Ericsson, and Western Digital Corporation.
Companies are also launching new innovative solutions to sustain the market competition. For instance, in June 2020, Schneider Electric SE and AVEVA partnered to deliver innovative solutions for multi-site and hyper-scale data centers. The new collaborative solutions give a unified view of engineering, operations, and performance across a diverse legacy installed base. In its integrated operations center, the project uses Aveva's industrial software and Schneider's EcoStruxure control & monitoring technology for data centers.