Europe data center colocation market revenue to reach $25bn by 2026

As per a recent industry report put forward by Graphical Research, the Europe data center colocation market is forecast to register its name in the billion-dollar fraternity down the line of seven years, by exceeding a revenue of USD 25 billion by 2026.

Europe data center colocation market trends are bringing in an optimistic perspective, thanks to the growing adoption of on-demand internet services. Increased internet usage fueled by work-from-home tendencies will favor the deployment of data center servers across the region. Reportedly 80% of adults in the European Union (EU) accessed the internet every day in 2020.

Because of the rising demand for internet services and assistance in the movement and storage of huge amounts of data at rapid speeds, data centers have become an indispensable need of the time.

Many individuals have tuned to the world of digital technologies for both commercial and personal purposes, such as internet banking, and video-on-demand, many other services. This has created a strong market for data center servers with huge information processing and storage capacity as well as robust memory power. China Telecom Corporation Limited, Zayo Group Holdings Inc., CyrusOne Inc., Digital Realty Trust Inc., Cyxtera Technologies Inc., NTT Communications Corporation, and Equinix Inc. are among the eminent data center colocation companies in Europe.

The three factors impacting industry trends are illustrated below:

IT & telecom industry drives growth
As data colocation services are used to secure storage, servers, and different networking devices and assist businesses in renting critical IT infrastructure at reasonable costs, the growing data volume is pushing their demand. A strong IT and telecommunications network will fuel the expansion of the data center colocation market outlook over the next five years.

Large carrier neutral data centers in Italy include cutting-edge technologies and a diverse ecosystem, guaranteeing optimum connection and uptime to around 175 service providers. Similarly, because of its geographical proximity to Mediterranean Europe, Africa, and Northern Europe, the Iberian Peninsula has emerged as a critical node on the global connection map. As the proportion of businesses adopting colocation services for power, space, and cooling demands grows, Europe data center server market share will increase from IT & Telecom sector applications.

Role in automotive manufacturing
Today’s large manufacturing facilities deploying advanced artificial intelligence (AI) technologies accumulate tremendous quantities of data. The presence of well-known automobile manufacturers across Europe, such as BMW, Mercedes-Benz, and Audi AG embracing these hi-tech solutions for process automation. The need for automotive data storage will fuel the need for high-quality wholesale colocation services. The introduction of Industry 4.0 and digitalization will also result in an increase in data traffic, thereby driving demand for effective data center colocation services. Owing to the technological prowess of German automotive industry, the automotive manufacturing sector in Europe data center colocation market is expected to garner significant gains through 2026.

Growing adoption across SMEs
Wholesale colocation services are expensive, since small firms do not need a separate data center due to their limited data storage demands. This is where retail colocation plays a role. It supplies them with the required data center resources in a short period of time, resulting in a cost-effective data management solution. Colocation service providers in the European market supply organizations with the essential data storage services while ensuring scalability and security. To quote an example, Equinix Inc., a provider of data center colocation, operates 62 data centers throughout Europe and the Middle East.

COVID-19 led social distancing norms have transformed the spheres of education and work. With the rise of work-from-home and online learning needs, huge amount of data is utilized. Universities are using modern technology to enable flawless remote education as they are obliged to take extensive efforts to halt the spread of the virus at the same time ensure academic progress. For example, The German Röntgen Society (DRG) will extend its interactive digital learning platform in May 2020 to assist radiography students and professors in accessing course information and modules throughout the pandemic.

CT Bureau