Data center companies are in high demand around the world. The global market is growing tremendously, with Technavio experts predicting an increase in market value of over $280 billion between 2019 and 2023. Europe can expect to see a healthy CAGR of 11% over this time period, with growth accelerating over the coming years. Western Europe makes up the bulk of this market, and is expected to be the source of over three-quarters of its growth in the next few years.
Factors such as the increasing popularity of multi-cloud strategies and the move to 5G are helping to drive the market, increasing demand for data center companies and their various services. The number of hyperscale data centers is also on the rise, led by an increase in demand for cloud services, big data, and other advanced technologies. This is creating many opportunities for data center providers, who continue to open new facilities across Europe.
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Who are the largest data center providers in Europe?
The European market is a concentrated one, and?will likely become more so over the next 5 years. There has been more than one merger between key players, and there are others in the planning stages. However, there are still many data center companies present in the region – both multinational corporations and those that operate primarily in Europe. Here are some of the leading vendors in the market today.
CenturyLink and Cyxtera
CenturyLink is a global provider of hybrid networking, cloud connectivity, and security solutions. Until 2017, the company operated 57 data center facilities around the world, including Europe. That year, CenturyLink sold its data center locations to a consortium that formed the company Cyxtera Technologies.
However, CenturyLink has not stopped operating in this market, and is leasing space from Cyxtera to provide cloud and data center services. The company currently offers 30 on-net data centers in countries throughout Europe. Meanwhile, Cyxtera operates 60 data centers globally, with locations in London, Amsterdam, and Frankfurt.
Colt Technology Services was founded in 1992 and is headquartered in London. Together with its partner Colt Data Centre Services, it operates 17 data centers throughout Europe and a total of 24 centers globally. Its solutions include power cooling and design, data center security, and connectivity services. Colt also runs the Colt IQ Network, which connects over 800 data centers around the world.
Digital Realty was founded in 2004 and has over 200 data centers in 15 countries, including locations in Amsterdam, Dublin, Frankfurt, and London. It provides colocation and interconnection services to a range of companies around the world. The company has committed to sustainable practices such as renewable energy and green building.
In October 2019, Digital Realty announced its plans to acquire European competitor Interxion in order to gain a stronger foothold in the European market. Between the two of them, the companies would have access to 70% of the region’s market and would be in a better position to compete against industry leader Equinix. The merger is expected to close in 2020.
Equinix was founded in 1998 and today owns over 200 data centers in 53 markets, making it one of the leading data center companies in the region. Its European locations include Bulgaria, Finland, France, Germany, Ireland, Italy, the Netherlands, Poland, Portugal, Spain, Sweden, Switzerland, Turkey, and the UK. In October 2019, the company announced it had formed a joint venture with GIC in order to build and run data centers in Europe. Equinix also plans to open a new facility in Warsaw, Poland in Q1 2020 in order to meet the high demand in the region. The new facility will offer colocation services as well as various interconnection services.
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Data Center Market in Europe - Size, Growth, Trends, and Forecast for 2019-2023
Established in 1998, Global Switch operates 13 data centers across Europe and APAC. Its European locations include Amsterdam, Frankfurt, London, Madrid, and Paris. The company offers carrier- and cloud-neutral environments for IT infrastructure, and has committed to reducing its carbon emissions and environmental impact. Although the company had planned an IPO for 2019, it decided to delay its plans until 2020 based on recent poor economic and political indicators.
GTT and Interoute
GTT Communications is a telecommunications and internet provider that serves businesses around the world. In 2018 it acquired Interoute, which operated one of Europe’s largest independent fiber networks, in order to enhance its presence in the European market. GTT operates 14 data centers and over 50 colocation centers in Europe and North America, including in the UK, Belgium, France, Germany, the Netherlands, Spain, and Switzerland.
Founded in the Netherlands in 1998, Interxion is a European data center services provider. The company has over 50 data centers distributed across 13 cities in Europe, making it well established in the region. It owns many submarine cables that link Europe to other parts of the world, including Asia, the Middle East, and Africa. Its merger with Digital Realty is an $8.4 billion acquisition, potentially the largest one in the history of the data center market.
Orange Business Services
Orange Business Services is a global communications solutions provider that has been operating in the industry for over 50 years. It operates over 70 data centers around the world and has a strong presence in Europe, particularly in Western Europe and the Nordics, where it generates the majority of its data center revenue. The company aims to be a frontrunner in connected data, digital experience, and business intelligence in the European region.
Founded in 1989, Telehouse operates over 40 data centers around the world, including several in London, Paris, Frankfurt, and Istanbul. It offers managed IT services as well as connectivity and cloud solutions. While the company began in New York, it quickly spread across Europe, opening its first London location in 1990 and moving into other countries from there.
Key questions answered in Technavio’s report on the Data Center Market in Europe:
- What will the data center market size and the growth rate be in Europe in 2023?
- What are the key factors driving the data center market in Europe?
- What are the key data center market trends impacting the growth of this market?
- What are the challenges to data center market growth in Europe?
- Who are the top European data center companies in the market?
- What are the market opportunities and threats faced by the vendors in the European data center market?
- What are the key outcomes of the Porter’s Five Forces analysis?
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