Cyxtera Technologies, Inc., CyrusOne, Inc., Digiplex, Equinix, Inc., Etix Everywhere, Global Switch Limited, Green Mountain, Interxion (Digital Reality), NTT Limited, Echelon Data Centers, and DATA4 Group [Description of Report] The Europe data center colocation market is anticipated to grow at a CAGR of 8.2% between 2021 and 2026. The data center industry is exhibiting signs of long-term growth and stability, despite the devastating effects of the COVID-19 pandemic on a number of other industries. Organizations are expressing that they are positive in regards to business amazing open doors inside the business. Data center service providers in the region have been disrupted as a result of the significant impact on the region. Additionally, as a result of the country's travel ban and widespread adoption of the work-from-home option, a significant increase in data traffic has resulted, putting a significant strain on the data center's capacity to maintain service and avoid downtime.

Highlights: By taking advantage of high-quality managed data center services, data center colocation helps businesses improve their operations in their particular industries. By streamlining workflows and lowering operational IT costs, businesses have been able to concentrate on generating revenue.
The significant demand for colocation services by hyperscale data center customers, such as large internet companies and public cloud service providers, is another factor that is driving the regional market. Major cloud service providers like Facebook, Microsoft, and Google have been leasing a lot of capacity from colocation companies in densely populated areas across the European region in addition to building massive data center facilities in remote areas.
Additionally, Dublin is well-connected to the United States and other European regions thanks to its low corporation tax rate. Ireland has been an extension among Europe and America. The data center industry and Dublin have demonstrated excellent growth prospects. The growth of smart technologies like AI, Big Data, and blockchain, as well as developments in media and social networks that feature videos and files much larger than written text, are all contributing to the continued increase in data volumes.
The majority of data centers do not have the necessary capabilities to obtain information about the connections and locations of network assets. Consequently, data center operators devote a significant amount of time to identifying and resolving issues during downtime. Long recovery times may ultimately hinder data center expansion.
Businesses in the region are observing increased data generation across multiple industries, including BFSI, IT and Telecom, Healthcare, and Government and Defense, among others. Key Market Trends Growing Adoption of Cloud Services The increasing prevalence of big data and IoT technologies is also anticipated to increase investments in data center facilities. The developing reception of distributed computing (which is additionally heightened attributable to the rise of the Coronavirus pandemic), expanding entrance of unfamiliar cloud merchants, legislative guidelines for nearby information security, and the rising ventures by homegrown players are a portion of the main considerations that are driving the interest for server farms in the locale.
The number of businesses migrating to the cloud has significantly increased, as shown by the data from Eurostat, the regional statistics agency. According to the report, cloud computing is used primarily for e-mail and file storage by 26% of EU businesses. With 65.3%, Finland used the services the most, followed by Sweden (57.2%), Denmark (55.6%), and the Netherlands (48.0%). In contrast, usage was 41.9 percent in Germany and 22.4 percent in the United Kingdom. Market expansion in the region is anticipated to be driven by a rise in such adoption of cloud computing.
Due to its status as a Tier 2 data center market, the Nordics have attracted numerous investments from cloud and hyperscale service providers like Facebook, Google, and Apple. Facebook, for instance, is expanding in Sweden, and AWS previously announced three builds there. In Norway, Microsoft has put resources into different server farm areas, while Google extends its tasks in Finland. Furthermore, FDI is not just provided by hyperscale players; ventures and colocation suppliers are additionally progressively putting resources into the Nordics district.
In addition, the development of new data centers in the region has significantly aided the expansion of the regional market. For instance, Interxion, a digital reality company and well-known European provider of carrier and cloud-neutral colocation data center solutions, introduced the first phase of MRS 3, its third data center in Marseille, in July 2020. With 14 cables currently landing in Marseille and five to ten more lines expected to land within five years, the Marseille campus is at the center of the global subsea cable industry.
A key factor in the market's expansion has been the rapid adoption of various cloud services. These cloud services have increased their share of data center usage over the past five years.
The adoption of edge computing, 5G, and the Internet of Things (IoT) is anticipated to exponentially increase the demand for data. The United Kingdom holds a significant market share. Moreover, the expansion in information traffic is supposed to decidedly affect the market s development. London is anticipated to be the most significant European data market, as stated in the Equinix report. Additionally, a growing number of European data compliance regulations are driving the trend. The industry is expected to grow at a rate of 48% per year and consume 23% of all interconnection bandwidth worldwide.
When choosing a colocation provider, consider the cloud service providers' connectivity. New hyperscale colocation participants, for example, Echelon Server farm and K2 Server farm, additionally add to showcase development during the conjecture time frame.
Demand for data centers is also being driven by innovative city initiatives and projects like Manchester's Triangulum project and Hull's Smart City OS, as well as the industry-wide adoption of new technologies like Big data and IoT.
Customers in this region gain access to a variety of features, including a service level agreement for 100 percent uptime, allowing them to concentrate on their core business operations rather than managing a data center. The supplier supplies and oversees equipment foundation with the cloud administrations, including servers, stockpiling, and organization components.
The UK may use 7,446 kWh of electricity per year, which is significantly more than the total limit for renewable generation due to the combination of non-business IT cloud requirements and over 5.5 million businesses utilizing cloud services.
The European data center colocation market is moderately fragmented, with only a few established and new players. To maintain their market share, the businesses continue to innovate and form strategic partnerships.

CyrusOne Inc., one of the most prominent global data center real estate investment trusts (REITs), announced in March 2021 that it had constructed its second net-positive water data center in Carrollton, Texas. The largest CyrusOne data center in the United States is in Carrollton, which is in a high-water stress region designated by the World Resources Institute.

Cyxtera, one of the major players in data center colocation and interconnection services, has launched the Cyxtera Portal in April 2021, giving customers access to a single, dedicated platform from which they can monitor, manage, and control their digital infrastructure. Customers can lay the groundwork for their digital business goals by utilizing Cyxtera's intelligently automated platform, which provides them with real-time access to their entire data center environment and all of the tools they require to manage dispersed infrastructure.