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Europe Observes Massive Growth in Data Centres
As digitisation influences every sector, there is an increase in data generation, which is causing a higher need for developing data centres.
FREMONT, CA: Studies indicate that revenues from data centres within Europe are anticipated to increase by nearly 60 per cent in the coming years. This will be one of the significant outcomes in European data centres. The current revenue in this space, which is 11.1 billion euros, will increase to 17.5 billion euros shortly. During the same period, European public cloud revenues are expected to increase 44 per cent, from 71.6 billion euros to 103.1 billion euros.
About 100 new data centre projects are expected to be unveiled soon, the majority of which will be situated outside of the Frankfurt, London, Amsterdam, and Paris markets in the so-called Tier 2 markets. Warsaw, Rome, Milan, Zurich, Barcelona, Madrid, and Lisbon are among the places that will experience new DC growth. In places like Iceland, the Nordics, Norway, and Italy, there are acquisitions of existing data centre providers taking place to expand their presence globally. There is an increased focus from investors on the data centre space, especially in Europe. From an investment perspective, it is noted that money invested in this concentration has transitioned from being a niche product to being more attractive.
Moreover, the demand is increasing tremendously and will continue to grow in the coming years as more and more companies outsource their technical infrastructure and business models and also as consumers shift into cloud-based services. About 25 per cent of the data centre market generated revenue of around 316 billion USD across the globe in 2021, which is also applicable to Europe.
The most crucial infrastructures of the last century were roads, bridges, rails, airports, and seaports. This century’s infrastructures are greatly impacted by the increasing digitisation in all areas, which are cellular towers, subsea and terrestrial fibre, and data centres to host servers to store and process data. The amount of worldwide generated data is expected to escalate to up to 175 zettabytes this year, which will require vast additional data infrastructure to transmit and store data, including more data centre capacity. With this extensive need for infrastructure, data centres will boom across Europe soon.