Switzerland Data Center Market Size & Share Analysis - Growth Trends & Forecasts Up To 2029

Key Highlights

• IT Load Capacity: The IT load capacity of the data center market will have steady growth and is expected to reach 676.2 MW by 2029.
• Raised Floor Space: The total raised floor area of the country is expected to increase to 2.6 million sq. ft by 2029.
• Installed Racks: The number of installed racks is expected to reach 130,041 units by 2029. Zurich is expected to house the maximum number of racks by 2029.
• DC Facilities: In 2022, there were 93 colocation data center facilities in Russia. Moscow is the major hotspot, followed by St. Petersburg and others in the country. Some factors contributing to the growth of the data center in the country include cloud adoption, an increase in broadband connectivity, smartphone penetration, and growing digitization.
• Leading Market Player: STACK Infrastructure Inc. was the leading player in the Swiss market in the historical period with five facilities and 102 MW in operation. It is expected to roll out one data center facility with a capacity of more than 1 MW during the forecast period.

Switzerland Data Center Market Trends

Tier 3 is the largest Tier Type

• The Tier 3 segment of the market had the largest market share of 81.5%, with an IT load capacity of 371 MW in 2022. It is further projected to exhibit a CAGR of 1.9%, surpassing 435.49 MW by 2029. On the other hand, tier 4 data centers are expected to gain traction with a projected CAGR of 15.49% to reach a capacity of 226 MW by 2029.
• Tier 1&2 segments already have an adequate supply of retail colocation and large-scale builds to cater to the increasing hyperscale cloud requirements, which are driving the demand as the need for lower latency and more efficiency is growing.
• Facilities in Tier 1 and Tier 2 data centers gradually lose their demand and display a decrease in growth in the upcoming years. Tier 1&2 facilities are expected to hold a market share of nearly 1.6% by 2029 with minimal growth. This is a result of the prolonged and inconsistent outages. Most users eventually switch to Tier 3 and Tier 4 facilities, holding 62.4% and 36% of market shares, respectively, owing to the increased demand for storing, processing, and analyzing data.
• The fintech sector of the economy is expanding. In 2018, SIX, which is the main infrastructure provider for the Swiss financial market, plans cloud for banking in Switzerland.
• Tier 4 data centers are expected to expand significantly in the years to come due to the fact that more businesses are providing cloud-based services, which caused more businesses to construct facilities to provide colocation space with the best technology. For instance, cloud expenditure in Switzerland was already CHF 4.93 billion in 2021, and only 5% of companies adopted cloud services by 2022.

Switzerland Data Center Industry Overview

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support