The EMEA data center colocation market is estimated to attract investments worth around $10 billion by 2023, growing at a CAGR of approximately 8% during 2017-2023.
The electrical infrastructure segment dominated the largest market share in 2017, growing at a CAGR of more than 7% during the forecast period. The increasing focus on procurement and adoption of efficient, require less maintenance, and reduce space systems are propelling the growth of this segment in the European market. The implementation of stringent regulations about privacy and security of data processed by facilities and consumers is driving the evolution of the European data center colocation market. In April 2016, the European Union adopted the General Data Protection Regulation (GDPR), which came into effect from May 2018. The implementation of GDPR is boosting the investments and demand for colocation services across several countries in the Europe market. The rapid deployment of innovative facilities namely, modular, containerized, and POD facilities will boost revenues in the European data center colocation market.
POD facilities are a single rack of facilities systems, with power and cooling integrated to provide higher performance for data processing applications at the edge locations in the market. The exponential proliferation of internet across the Eastern European and Africa region will positively impact the European data center colocation market. The growing popularity of district heating concept across the region will transform the European data center colocation market during the forecast period. The facilities are the major consumers of power and water in the market. The process of converting the disadvantage of operating a facility in a locality to its advantage by supplying waste heat emitted by servers to cool district homes during winters is district heating.
The wholesale colocation services are the fastest growing segment in the market, at a CAGR of more than 13% during the forecast period. In 2017, various large enterprise businesses and global cloud providers were the largest users of wholesale services in the European market. The leading service providers are offering customized wholesale colocation solutions, where the pre-leased customer can work with the service provider to design and develop the facility according to the customer's IT infrastructure operational requirement. Personalization of services will boost the demand for these services in the data center colocation market in Europe.
Western Europe dominated the majority of the market share in 2017, growing at a CAGR of around 6% during the forecast period. The UK, Germany, France, Ireland, Spain, Italy, the Netherlands, Switzerland, Portugal, and Austria are the largest revenues generators in the Western European region in the EMEA market. The Nordic region occupied the second largest market share in 2017, growing at a CAGR of approximately 12% during the forecast period. The deployment of hyperscale facilities, spanning over 200,000 square feet, and rack power density of up to 40kW is propelling the growth of the Nordic region in the European market.
The EMEA data center colocation market is witnessing the expansion and construction of new facilities across the region due to the implementation of GDPR. The leading facilities operators are deploying facilities with over one million net rentable white space to service retail and wholesale facilities customers.
Some of the other prominent providers of datacenter service in the European market include T-Systems, Kepple DC, Colt DCS, TeliaSonera, Iliad Datacenter, Telefónica, Euclyde, and Interoute. The growing demand for cloud services will create new avenues for service providers operating in the market. Vendors such as Equinix has developed an estimated net rentable area of around 500,000 square feet across 14 facilities that were opened and under construction in 2017 to attract a maximum number of consumers in the market. The entrant of pure-play colocation providers will increase the level of competition in the EMEA data center colocation market during the forecast period.
Other prominent vendors in the EMEA data center colocation market consist of:
3 data, Aruba S.P.A., Atman (ATM S.A.), Basefarm (Orange Group), Bezeq International, CenturyLink (Level 3), Cyxtera Technologies, dcstar, Digiplex, Euclyde, Flexential, Fortlax, Global Connect, Green Datacenter AG, Hydro66, Iliad Data Center, Internap, Interoute (GTT Communications), IXcellerate, Keppel DC, LDeX Group, Liquid Telecommunication,LuxConnect, Mobily, Ooredoo, ST Telemedia Global Data Center (STT GDC), Switch SUPERNAP, Telehouse, Telefónica, Teraco Data Environments, Tieto, TSystems (Deutsche Telekom), Turkcell, Verne Global, VNET, and Zayo Group Holdings.