The "Europe Data Center Colocation Market: Focus on Application, Product, and Country Analysis and Forecast, 2025-2034" report has been added to ResearchAndMarkets.com's offering.
The Europe data center colocation market was valued at $56.72 billion in 2024 and is projected to grow at a CAGR of 13.68% from 2025 to 2034, reaching $226.76 billion by 2034.
The market for data center colocation is expanding quickly in Europe due to the growing need for safe, scalable, and affordable IT infrastructure. Colocation services are now crucial for offloading infrastructure management while maintaining high-performance, resilient, and energy-efficient operations as businesses embrace cloud computing, hybrid IT architectures, and digital transformation projects.
The need for dispersed, low-latency data center networks is being further fuelled by the region's growth in edge computing. At the same time, sustainability has emerged as a top concern, leading colocation providers to make investments in improved cooling systems, ecologically conscious facility design, and the incorporation of renewable energy. These factors, combined with stringent European data protection regulations and growing enterprise demand for uptime and operational efficiency, are positioning colocation as a critical component of Europe's evolving digital infrastructure landscape.
Europe Data Center Colocation Market Trends, Drivers and Challenges
Market Trends
- Growth of edge data centers to support low-latency applications
- Increased demand for hybrid and multi-cloud environments
- Rising adoption of liquid cooling and energy-efficient infrastructure
- Greater focus on green colocation powered by renewable energy
- Expansion of hyperscale colocation partnerships with global cloud providers
Market Drivers
- Accelerating digital transformation and cloud migration across industries
- Stringent data sovereignty and GDPR compliance requirements
- Cost-efficiency and scalability benefits over on-premise infrastructure
- Growing demand for high-performance computing (HPC) and AI workloads
- Surge in e-commerce, video streaming, and remote work post-COVID
Market Challenges
- High capital and operational costs in establishing new data center facilities
- Power availability constraints and grid limitations in urban areas
- Variability in environmental regulations across European countries
- Increasing cybersecurity risks and pressure to ensure robust data protection
- Talent shortages in specialized IT and data center operations
Report Scope:
Product/Innovation Strategy: Europe's data center colocation market is segmented based on diverse applications, and business models, providing insights into its broad range of use cases. Key applications include IT and telecom, banking, financial services, insurance (BFSI), government, healthcare, manufacturing, retail, and others, each benefiting from scalable, secure, and reliable colocation services.
The market also distinguishes between retail colocation, which caters to smaller businesses requiring flexible solutions, and wholesale colocation, designed for large-scale enterprises with high-volume data needs. Continuous technological advancements, such as energy-efficient cooling, automation, and enhanced security features, are expected to drive the market's growth, providing substantial opportunities for industry players to expand their offerings and strengthen their market position in this rapidly evolving sector.
Growth/Marketing Strategy: The European data center colocation market has been growing at a rapid pace. The market offers enormous opportunities for existing and emerging market players. Some of the strategies covered in this segment are mergers and acquisitions, product launches, partnerships and collaborations, business expansions, and investments. The strategies preferred by companies to maintain and strengthen their market position primarily include product development.
Competitive Strategy: The key players in the European data center colocation market analyzed and profiled in the study include professionals with expertise in the automobile and automotive domains.
Additionally, a comprehensive competitive landscape such as partnerships, agreements, and collaborations are expected to aid the reader in understanding the untapped revenue pockets in the market.
Key Market Players and Competition Synopsis
The companies that are profiled in the Europe data center colocation market have been selected based on inputs gathered from primary experts who have analyzed company coverage, product portfolio, and market penetration.
Some of the prominent names in this market are:
- IPTP Networks
- 365 Data Centers
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 67 |
| Forecast Period | 2025 2034 |
| Estimated Market Value (USD) in 2025 | $71.5 Billion |
| Forecasted Market Value (USD) by 2034 | $226.76 Billion |
| Compound Annual Growth Rate | 13.6% |
| Regions Covered | Europe |
Key Topics Covered:
1 Markets
1.1 Colocation Data Center Market Trends: Current and Future Impact Assessment
1.1.1 Data Center Capacities: Current and Future
1.1.1.1 Retrofitting and Brownfield Projects
1.1.1.2 Green Field Projects and New Installation
1.1.2 Data Center Power Consumption Scenario
1.1.3 Vacancy Rates and Absorption (by Region)
1.1.4 Key Markets to Focus on
1.1.5 Other Industrial Trends
1.1.5.1 HPC Cluster Developments
1.1.5.2 Blockchain Initiatives
1.1.5.3 Super Computing
1.1.5.4 5G and 6G Developments
1.1.5.5 Impact of Server/Rack Density
1.2 Research and Development Review
1.2.1 Patent Filing Trend (by Country, by Company)
1.2.2 End User and Buying Criteria
1.3 Market Dynamics Overview
1.3.1 Market Drivers
1.3.1.1 Increasing Data Center Spending
1.3.1.2 Growing Integration of AI and Cloud Computing
1.3.1.3 Sustainability and Environmental Pressures
1.3.2 Market Restraints
1.3.2.1 Power and Energy Constraints
1.3.2.2 Data Security and Compliance Challenges
1.3.3 Market Opportunities
1.3.3.1 Growing Demand for Different Business Models
1.3.3.2 Growth in AI Workloads
2 Regions
2.1 Regional Summary
2.2 Europe
2.2.1 Regional Overview
2.2.2 Driving Factors for Market Growth
2.2.3 Factors Challenging the Market
2.2.4 Application
2.2.5 Product
2.2.6 Europe (by Country)
2.2.6.1 Germany
2.2.6.2 France
2.2.6.3 U.K.
2.2.6.4 Netherlands
2.2.6.5 Ireland
2.2.6.6 Italy
2.2.6.7 Rest-of-Europe
3 Markets Competitive Benchmarking and Company Profiles
3.1 Next Frontiers
3.2 Geographic Assessment
3.2.1 IPTP Networks
3.2.1.1 Overview
3.2.1.2 Top Products/Product Portfolio
3.2.1.3 Top Competitors
3.2.1.4 Target Customers/End Users
3.2.1.5 Key Personnel
3.2.1.6 Analyst View
3.2.1.7 Market Share (by Revenue), 2023
3.2.1.8 Market Share (by Number of Colocation Data Centers), 2023
3.2.2 365 Data Centers
3.2.2.1 Overview
3.2.2.2 Top Products/Product Portfolio
3.2.2.3 Top Competitors
3.2.2.4 Target Customers/End Users
3.2.2.5 Key Personnel
3.2.2.6 Analyst View
3.2.2.7 Market Share (by Revenue), 2023
3.2.2.8 Market Share (by Number of Colocation Data Centers), 2023
For more information about this report visit https://www.researchandmarkets.com/r/8mtzeg
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