Europe Data Center Colocation Market Set for Quadruple Growth by 2031
Event summary
- Europe's data center colocation market investment is projected to grow from USD 11.65 billion in 2025 to USD 46.51 billion by 2031, a CAGR of 25.94%.
- Western Europe will capture 71.3% of total investment by 2031, with the Nordics and Central & Eastern Europe accounting for 22.8% and 5.9%, respectively.
- AI and cloud workloads are driving infrastructure requirements, supported by digitalization, 5G deployment, sustainability initiatives, and submarine cable investments.
- Liquid cooling technologies are increasingly adopted to manage high-performance computing (HPC) and AI workloads.
- Italy's development pipeline includes USD 8.13 billion in major announced investments, signaling a significant increase in planned capacity.
The big picture
The Europe data center colocation market is experiencing rapid expansion driven by the increasing demand for AI-ready infrastructure and cloud workloads. This growth is supported by significant investments in digitalization, 5G deployment, and sustainability initiatives, which are reshaping the landscape of data center development across the continent. The market's strategic shift beyond traditional hubs highlights the need for alternative locations to accommodate future capacity demands.
What we're watching
- Geographic Expansion
- How the shift beyond established hubs like the UK and Germany will impact regional market dynamics.
- Technological Adoption
- The pace at which liquid cooling technologies will be adopted to support AI and HPC workloads.
- Sustainability Constraints
- Whether power, land, and sustainability restrictions in key markets like Amsterdam will limit future capacity growth.
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