Data Center Market in Europe: ‘Cloud’ Demand from the IT Sector to Fuel Industry Growth to 2020
Category: #world  By Saipriya Iyer  Date: 2017-03-15
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Data Center Market in Europe: ‘Cloud’ Demand from the IT Sector to Fuel Industry Growth to 2020

With top industry magnates striving to expand cloud-based services across various geographies, data center market in Europe is set to witness a tremendous upsurge in the next few years. Adoption of novel technological advancements, increasing demand for cloud-based services in organizations, and rising need for storing huge data volumes will be the prime drivers for this market in the years to come.

High-tech enterprises in Europe are constantly on the lookout for high technology-driven data center systems to minimize technical complexities and loss of valuable data. Key data center market participants include Equinix, Interroute, Digital Realty, NTT Communications, Colt Technology Services, Global Switch, and Interxion. These players engage in the construction of new data center facilities across the continent to strengthen regional presence and improve productivity. For instance, Interxion recently announced that the company is all set to construct new data center facilities across the plum markets - London, Frankfurt, and Stockholm

Data center market in Europe sees prominent enterprises such as Telefónica, Pulsant, Iomart, Data4, CenturyLink, Quality Technology Services, Level 3 Communications, Telehouse, Sungard Availability Services, Zayo Group, Amazon Web Services, Deutsche Telekom, Fujitsu, DigiPlex, and British Telecom active at one level or the other.

One of major drivers for data center market is growing business demands for highly efficient data storage and dissemination. Data centers are primarily used to store, distribute, and manage a huge amount of data for various enterprises. These facilities accommodate the company’s most crucial data and are vital to ensure smooth business operations.

Data center market in Europe is anticipated to increase at a CAGR of 10% over 2016-2020. This growth is reportedly derived by calculating the total revenue generated from the capital expenditure of cooling solutions, DCIM, racks, IT equipment, security, power management systems, and general construction.

Global containerized and modular data center market is predicted to grow at a healthy rate over 2017-2021, driven by technological innovations and the relatively high cost of renovating traditional data centers.

The rising demand for highly efficient data center systems to support a huge IT load (250 kW) in applications such as edge computing, branch office operations, and disaster recovery will subsequently fuel the mini data center market over 2017-2021.

One of the major restraints for data center industry in Europe is data localization. With huge volumes of data being stored and distributed on a daily basis, consumers across the continent experience legitimate concerns regarding data security and protection. The European Union (EU) plans to tackle this threat via renewal of privacy laws, enabling free flow of data, and enforcing less restrictions on public procurement.

IT giants such as Microsoft, Verizon Communications, Facebook, IBM, Google, and Apple are also major industry shareholders who are undertaking steps to expand their data center market in Europe. Microsoft and Amazon Web Services recently announced their willingness to comply with the General Data Protection Regulation (GDPR), set to be enforced in the middle of 2018, which aims to ensure maximum data privacy across the European Union.



About Author

Saipriya Iyer

Email: [email protected]   

Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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