European data centre construction market set to be valued at $13bn by 2024

Europe’s data centre market has been estimated to reach US$13bn by 2024, according to a recent report by Arizton.

The report, titled ‘Data Center Construction Market in Europe - Industry Outlook and Forecast 2019-2024’, claims that the market will grow at a compound annual growth rate (CAGR) of 4% between 2018 and 2024.

The growth is anticipated to be driven by the rise in the procurement of renewable energy sources for data centre operations, as well as data centre automation and the lithium-ion batteries and fuel cell industry.

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Companies such as Ericsson, Deutsche Telekom, Telia Sonera, Telenor, and Tele2 TDC Group are investing internet connectivity across Western Europe, which will also drive growth.

Investment in the cloud, telecommunications, general data protection regulation (GDPR), and social media has also been attributed to the growth.

Approximately 70% of data traffic is concentrated in Germany, France, Italy, Spain, and the UK, according to the Global Interconnection Index by Equinix Frankfurt.

The report claims that hyperscaleservice providers are targeting the continent for investment within the data centre market.