Europe Data Center Construction Market Size Analysis - Market Share, Forecast Trends and Outlook Report (2025-2034)

The Europe data center construction market size reached around USD 69.91 Billion in 2024. The market is projected to grow at a CAGR of 8.10% between 2025 and 2034 to reach nearly USD 152.33 Billion by 2034.

Europe Data Center Construction Market Growth

Cloud adoption rates vary significantly among European countries. In 2023, business enterprises based in Finland (78%), Sweden (72%), and Norway (71%) reported the highest use of cloud computing tools and services. They were closely followed by Denmark (70%), Malta (67%), Ireland (63%), and the Netherlands and Italy (61% reach). Most European enterprises use the Software as a Service (SaaS) model for their day-to-day functions, which reinforces its high adoption rate of over 95% in all cases. The increasing demand for cloud storage led to a 4 pp (percentage points) surge in the shift towards cloud computing tools in Europe during 2021-2023. Nearly 45% of all European businesses used cloud computing technologies in 2023. This is expected to drive the demand for data center construction market in Europe.

In 2021, the European e-commerce industry recorded a yearly growth rate of 13 %, reaching nearly EUR 718 billion. Almost 73% of all internet users in Europe purchased goods online, with netizens of Northern Europe accounting for the highest market share. This is closely followed by netizens of Western Europe (84%), Central Europe (75%), and Eastern Europe (46%). Western Europe, which accounted for nearly 63% of the total turnover of B2C e-commerce in 2021 is expected to remain a key driver for promoting Europe data center construction market growth.

Key Trends and Developments

Rapid economic digitalisation; technological advancements; and growing demand for power and water among industries are factors impacting the Europe data center construction market expansion

September 2024

A Spanish renewable energy company Solaria signed a Memorandum of Understanding with Japan-based firm Datasection Inc. to develop a 200 MW data center at Castile-La Mancha, at one of its solar farms.

May 2024

Amazon Inc. announced its decision to invest EUR 15.7 billion in Spain to expand its cloud business in the EU, thereby leading to the Europe data center construction market growth.

February 2024

Microsoft Corp. announced its decision to invest EUR 3.2 billion by 2025 in Germany to accelerate its AI and cloud computing capabilities through its data centers. It is also expected to train over 1.2 million people in essential digital skills.

November 2023

The UK government introduced a 'connections action plan' under which it plans to invest EUR 960 million in its green energy and power sector, thereby reducing average delays in grid connection from 5 years to 6 months. This can boost data center operator’s access to reliable power supply network, thereby leading to Europe data center construction market development.

Rapid digitalisation

By 2030, the digitalisation of numerous industries is anticipated to add 1.1 pp to Europe’s annual economic growth while increasing GDP by more than 14%.

Technological advancements

The rising availability of generative AI applications to the masses has enhanced the demand for hyperscale data centers, thereby driving market expansion.

Growing demand for power and water

Major data centers in Paris, Frankfurt, and Dublin require 700 MW of power for operation. They also consume heavy quantities of water for hardware cooling. This has prompted major companies to diversify their energy resources and accommodate the water demands of citizens.

Rising demand for raised flooring designs

High-pressure laminate has become a significant material for laying tiles in data center facilities due to its ability to minimise static generation and provide an easy-to-clean surface.

Europe Data Center Construction Market Trends

The strengthening of sustainable reporting rules for data center operators in Europe is in line with the EU’s strategy to reduce its overall energy consumption by 11.7% through 2020 to 2030. Since construction of data centers in Europe is expected to record a double-digit growth over the forecast period, the new reporting standards mandate data center operators to track their energy efficiency and freshwater consumption, boost the reliance on renewable power sources, and reuse excessive heat that is generated in data centers. It also requires them to measure the effectiveness of their cooling mechanism while ensuring substantial reductions in their carbon footprint.

Europe Data Center Construction Industry Segmentation

Europe Data Center Construction Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Infrastructure:

• Electrical Infrastructure
• UPS Systems
• Others
• Mechanical Infrastructure
• Cooling Systems
• Racks
• Others
• General Infrastructure

Market Breakup by Size:

• Small and Medium-Size Data Center
• Large Data Center

Market Breakup by Tier Type:

• Tier I and II
• Tier III
• Tier IV

Market Breakup by End Use:

• BFSI
• IT and Telecom
• Government and Defence
• Healthcare
• Others

Market Breakup by Country:

• Germany
• United Kingdom
• France
• Italy
• Others

Europe Data Center Construction Market Share

Based on country, the market is segmented into Germany, the United Kingdom, France, and Italy, among others. Germany is projected to dominate the market, representing 23% of the overall market share. Over the forecast period, it is expected to grow at a CAGR of 8.4%, due to the rapid adoption of sustainable construction practices in the country.

Leading Companies in the Europe Data Center Construction Market

Major players are focused on enhancing the power usage effectiveness ratio by optimising electricity usage in data centers. They are also seeking viable sites for expanding facilities and their Europe data center construction market share.

AECOM

AECOM is a multinational infrastructure consulting firm that specialises in engineering, project management, and environmental services. Headquartered in Texas, United States, the company was founded in 1990. It operates in over 150 countries and caters to sectors such as transportation, water management, and urban development.

Collen Construction Limited

Collen Construction Limited is an established Irish construction firm known for its expertise in managing complex projects across commercial, residential, and public sectors. Founded in 1950 and headquartered in Dublin, Ireland, the company has successfully delivered high-profile projects throughout Europe.

Delta Electronics, Inc.

Delta Electronics, Inc. is a leading provider of power and thermal management solutions. Established in 1971 and headquartered in Taiwan, China, it focuses on industrial automation, telecommunications, and renewable energy.

Mercury Engineering

Mercury Engineering is an Irish company that provides mechanical and electrical engineering services across multiple sectors such as data centers and pharmaceuticals. It was founded in 1948 and is based in Dublin, Ireland.

Other key players included in the Europe data center construction market report are DPR Construction, Dell Inc., Legrand SA, NTT Ltd., Schneider Electric SE, and Jacobs Solutions Inc., among others.