Europe Data Center Colocation Market
Market Overview and Dynamics
The Europe data center colocation market is projected to grow from US$ 11,407.07 million in 2021 to US$ 33,615.39 million by 2028, registering a robust CAGR of 16.7% during the forecast period. Modern colocation data centers serve as connectivity hubs, allowing clients to seamlessly access a variety of services through a single cross-connect or secure direct connections, such as Microsoft Azure ExpressRoute.
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As telecom operators roll out the first wave of 5G services, colocation centers are increasingly vital for extending network service providers’ infrastructure. The delivery of reliable 5G connectivity demands significantly more data center capacity than many providers currently possess. Consequently, colocation emerges as a cost-effective and scalable solution to support growing data demands driven by surging internet usage.
Moreover, many organizations lack the capital to expand their existing on-premise infrastructure or build private data centers. By partnering with experienced colocation providers, companies can leverage cutting-edge infrastructure without the burden of large upfront investments. These strategic collaborations provide immediate access to advanced capabilities, positioning businesses for faster growth and enhanced operational efficiency.
A notable development in this space occurred on May 5, 2020, when IBM introduced new services designed to accelerate the adoption of edge computing in the 5G era. These solutions empower enterprises and telecom providers to manage low-latency workloads more efficiently and deliver edge-enabled services with agility. Businesses across sectors can now tap into AI, analytics, and edge computing to extract deeper insights and drive innovation.
Key Market Segments
The Europe data center colocation market is segmented by type, enterprise size, industry, and country:
- By Type:
- Retail colocation held the largest market share in 2020.
- Wholesale colocation is expected to be the fastest-growing segment through 2028.
- By Enterprise Size:
- Large enterprises dominated the market in 2020.
- SMEs are projected to witness the highest growth during the forecast period.
- By Industry:
- IT & Telecom led the market in 2020.
- The BFSI segment is anticipated to grow at the fastest pace between 2021 and 2028.
Major Sources and Key Companies
Key information for this report was obtained from a variety of sources, including company websites, annual reports, financial disclosures, government publications, and industry databases.
Prominent companies featured in the report include:
- AT&T Intellectual Property
- CyrusOne, Inc.
- Cyxtera Technologies, Inc.
- Digital Realty Trust LP
- Equinix Inc.
- Global Switch
- NTT Communications Corporation
- Telehouse
- Verizon Partner Solutions
Reasons to Buy This Report
- Gain a comprehensive understanding of the Europe data center colocation market landscape and identify high-potential market segments.
- Stay competitive by tracking changes in the market’s structure and key players.
- Plan effective mergers, acquisitions, or partnerships by targeting segments with strong growth potential.
- Make informed decisions based on in-depth analysis of each market segment’s performance and future trajectory.
- Access reliable revenue forecasts for each segment across 2021 to 2028 within the European region.
Market Introduction
The Europe data center colocation market is segmented into Germany, France, Italy, the UK, Russia, and the Rest of Europe. The launch of new data center initiatives is playing a vital role in driving market growth. For example, in July 2020, Interxion—a provider of carrier- and cloud-neutral colocation data center solutions—launched the first phase of MRS 3, its third data center in Marseille, France. This facility supports a 100% uptime service-level agreement (SLA), enabling businesses to focus on core operations rather than data center management.
The growing number of hardware infrastructure providers that also deliver integrated cloud services—including servers, storage, and networking—is further accelerating regional market expansion. Key markets such as Germany, the UK, France, and Italy are rapidly transitioning to cloud-based operations, fueled by widespread adoption of Big Data, Industry 4.0, the Internet of Things (IoT), 5G, and cloud computing technologies. The shift to remote work during the COVID-19 pandemic has further intensified the need for enhanced data storage and processing capacity across the region. In particular, the growing demand for high-performance computing (HPC) solutions has emerged as a significant driver of market growth.
The impact of the COVID-19 pandemic varied across European countries. While all countries faced rising case numbers and lockdowns, Western European nations such as Germany, France, Russia, and the UK experienced a relatively moderate decline in economic activity, largely due to their robust healthcare systems. To combat the pandemic, European governments made substantial investments in technology integration within healthcare systems to aid early detection and containment.
The sudden onset of the pandemic and subsequent lockdowns brought about significant transformation in the data center industry. Demand for cloud services surged as consumers increasingly worked, studied, and entertained themselves from home. Businesses across sectors required additional digital infrastructure to support their virtual operations. Although the spike in demand temporarily disrupted supply chains during the first half of 2020, the market began to recover by the third quarter. These factors collectively are expected to propel the growth of the data center colocation market in Europe over the forecast period.
Strategic Insights into the Europe Data Center Colocation Market
Strategic insights into the Europe data center colocation market deliver a data-driven evaluation of the evolving industry landscape—highlighting emerging trends, leading players, and regional dynamics. These insights provide actionable guidance, enabling stakeholders to uncover untapped market segments and craft distinct value propositions to stay ahead of the competition.
By leveraging advanced analytics, these insights equip investors, operators, and service providers with the foresight to anticipate market changes and adapt accordingly. A forward-looking approach is critical in navigating this fast-paced environment, ensuring long-term growth and resilience. Ultimately, these strategic insights support informed decision-making, driving operational efficiency, profitability, and sustainable success across the European data center colocation ecosystem.
Market leaders and key company profiles
· AT&T Intellectual Property
· CyrusOne, Inc.
· Cyxtera Technologies, Inc.
· Digital Realty Trust LP
· Equinix Inc.
· Global Switch
· NTT Communications Corporation
· Telehouse
· Verizon Partner Solutions.
Regional Insights for the Europe Data Center Colocation Market
The geographic scope of the Europe data center colocation market encompasses the distinct regions where businesses operate and compete. Recognizing regional differences—such as consumer preferences (e.g., specific power plug types or battery backup requirements), economic conditions, and regulatory frameworks—is essential for developing effective, localized strategies. By identifying underserved markets and customizing offerings to address local needs, companies can extend their market presence. A focused regional strategy enables more efficient resource allocation, precise marketing efforts, and stronger competitive positioning, ultimately driving growth in targeted European regions.
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Author's Bio
Akshay
Senior Market Research Expert at Business Market Insights
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