Russia 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 is expected to grow steadily and reach 1516 MW by 2029.
• Raised Floor Space: The total raised floor area of the region is expected to increase to 4.3 million sq. ft by 2029.
• Installed Racks: The total number of installed racks is expected to reach 216,571 units by 2029. Moscow 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 centers market in the country include cloud adoption, an increase in broadband connectivity, smartphone penetration, and digitization.
• Leading Market Player: Rostelecom was the leading player in the Russian market in the historical period, with 19 facilities and 128.3 MW in operation. It is expected to roll out five data centers with a capacity of 56 MW during the forecast period.

Russia Data Center Market Trends

Tier 3 is the largest Tier Type

• The tier 3 segment in Russia reached an IT load capacity of 459.63 MW in 2022. They are projected to register a CAGR of 5.63%, surpassing 700.98 MW by 2029. The tier 4 segment is projected to register a CAGR of 32.83% to reach an IT load capacity of 782.78 MW by 2029.
• Tier 1 & 2 facilities are gradually losing their demand, which may continue in the coming years. Tier 1 & 2 facilities are expected to hold a market share of nearly 2.3% by 2029. This minimal growth is likely to be a result of prolonged and inconsistent outages. Most users will eventually switch to tier 3 and 4 facilities, which currently hold 55.6% and 42.1% of the market, respectively, due to the increased demand for storing, processing, and analyzing data.
• The e-commerce and BFSI segments are expanding. In recent years, Russia has seen a rise in the use of online and mobile banking. For instance, the volume of online sales of physical goods in Russia grew 1.5-fold Y-o-Y in the first half of 2022 to 2.2 trillion. In 2020, domestic Russian online sales of physical items reached USD 37 billion, an increase of 58% from 2019.
• Tier 4 data centers are projected to grow significantly in the coming years as more businesses are providing cloud-based services. Therefore, many data center providers are constructing facilities to provide colocation spaces with the best technology.
• The Russian invasion of Ukraine in 2022 boosted the prices of cloud services significantly as major Western manufacturers stopped supplying IT equipment to the Russian market due to logistical issues and the increased value of the Dollar and Euro.

Russia Data Center Industry Overview

Additional Benefits:

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