Introduction

The Europe Data Center Construction Market refers to the industry involved in planning, building, and delivering data centers across Europe. This includes civil construction, power infrastructure, cooling systems, IT hardware, electrical and mechanical systems, security, and network connectivity. These facilities serve hyperscale cloud providers, colocation operators, enterprises, and governmental organizations.

Data center construction in Europe has become critical globally because of rising demand for cloud computing, artificial intelligence (AI) and machine learning workloads, edge computing, and regulatory requirements around data sovereignty. Businesses increasingly require secure, efficient, resilient infrastructure near end-users. In 2024, the market’s value is estimated between USD 47.1 billion and USD 59.45 billion, depending on definition and scope.

Learn how the Europe Data Center Construction Market is evolving—insights, trends, and opportunities await. Download report:  https://www.databridgemarketresearch.com/reports/europe-data-center-construction-market

The Evolution

Europe’s data center construction has evolved over several phases. Initially, data centers were few and focused on serving local enterprise needs. In the early 2000s, demand from internet services, search engines, and social media drove large-scale facilities, mainly in the UK, Germany, and France.

Key innovations and milestones include:

• Emergence of hyperscale data centers (large campuses built by cloud providers) in the 2010s, scaling both power and footprint.

• Introduction of improved cooling technologies, moving from air-based systems to liquid cooling and more efficient HVAC designs.

• Advances in modular construction, prefabricated components, and rapid deployment methods.

• Regulatory frameworks around data protection (e.g. GDPR) and energy efficiency increased design demands.

• Growing focus on sustainability, renewable energy supply, and reuse of waste heat.

Shifts in demand and technology also reflect growing workloads from streaming, video, gaming, AI, and edge computing. Data is more distributed and real-time processing is more important, so facilities are being built closer to end users.

Market Trends

• Rapid demand from hyperscale cloud and AI operators has caused capacity to expand quickly. New hyperscale commitments exceeded EUR 50 billion in Europe in recent years. Mordor Intelligence+2Data Center Knowledge+2

• Cooling infrastructure is becoming a major area of investment, especially liquid cooling, evaporative cooling, and techniques to reduce Power Usage Effectiveness (PUE). Grand View Research+2DLA Piper+2

• Edge data centers are growing rapidly to meet lower latency demands. Tier-3 facilities currently dominate share, but Tier-4 growth is accelerating. Mordor Intelligence+1

• Sustainability is central: use of renewable power, heat reuse, energy efficiency, carbon-neutral or net-zero design is increasingly demanded by regulation and customers. DLA Piper+2Data Center Knowledge+2

• Secondary and non-traditional markets are gaining attention because of lower land costs, favorable power availability, and regulatory incentives. Countries in Nordics, Southern Europe, Spain, the Netherlands beyond FLAP-D (Frankfurt, London, Amsterdam, Paris, Dublin) are expanding. Mordor Intelligence+2Data Center Knowledge+2

Challenges

• Energy supply and grid infrastructure are strained. Grid bottlenecks in some European hubs (e.g. Germany) cause long delays for data center connection. algorithmwatch.org+2DLA Piper+2

• Regulatory approvals and permitting timelines can be long and complex due to environmental, zoning, and local planning rules. This slows construction starts. GMI Research+2DLA Piper+2

• High cost pressures from materials, labor, and equipment, especially when high-performance power and cooling systems are required. Inflation and supply chain constraints are adding to costs. Mordor Intelligence+1

• Land and power availability in prime locations are limited; competition for renewable energy is rising. Power costs vary widely across countries, influencing location decisions. DLA Piper+2Mordor Intelligence+2

• Skilled labor shortages in specialized areas (cooling, high-voltage systems, AI infrastructure) affect project timelines and quality. Mordor Intelligence+1

• Balancing sustainability and performance: meeting energy efficiency and environmental targets can increase up-front costs, though they may reduce operating costs over the lifecycle.

Market Scope

Segmentation by Infrastructure Type

• IT Infrastructure (servers, storage, networking)

• Power & Electrical Infrastructure (transformers, backup systems, PDUs)

• Cooling Infrastructure (air cooling, liquid cooling, evaporative cooling)

• Mechanical / Civil Infrastructure (site preparation, building, shell, structural)

By Tier Type

• Tier-1 & Tier-2 (standard, lower redundancy)

• Tier-3 (widely used in Europe)

• Tier-4 (highest redundancy and availability)

By Data Center Type

• Hyperscale (large campuses)

• Colocation

• Edge / Micro data centers

• Enterprise / On-premises data centers

By End-User Vertical

• Cloud and Internet Service Providers

• Government and Public Sector

• Financial Services & Banking

• Healthcare

• Telecommunications & Media

• E-commerce & Retail

• Manufacturing / Industry

By Region (within Europe)

• Western Europe (Germany, UK, France, Netherlands)

• Nordics (Sweden, Finland, Norway)

• Southern Europe (Spain, Italy, Portugal)

• Eastern Europe (Poland, Czechia, etc.)

• Central & Southeastern Europe

Market Size and Forecast to 2035

• Data Bridge Market Research analyses that the Europe data center construction market will grow at a CAGR of 24.7% from 2023 to 2030.

• Another source places the market at USD 47.1 billion in 2024, growing to approx USD 83.4 billion by 2032, CAGR ~7.4%. GMI Research

• A third estimate shows revenue of USD 49,488.4 million (~USD 49.5 billion) in 2024, forecast to reach USD 97,417.5 million (~USD 97.4 billion) by 2030 at ~12.5% CAGR. Grand View Research

From 2025 to 2035, forecasting beyond the existing 2030-2032 horizon, if the market continues growing under similar drivers, a projected market value in the range of USD 140-200 billion by 2035 is plausible, subject to energy constraints, regulatory adaptation, and demand from AI and edge applications.

Regional and Global Adoption Patterns

• Western Europe, especially Germany, UK, France, Netherlands, is the established core. Germany holds ~14-15% of current regional spend. Mordor Intelligence

• Nordic countries are increasingly preferred for data centers because of stable renewable energy supply, cooler climate (which eases cooling), and political stability.

• Southern and Eastern Europe are emerging as attractive growth zones due to lower land costs and strong incentives.

• Globally, Europe lags behind some US and Asia-Pacific markets in terms of speed and scale of data center construction but is catching up, especially with sovereign cloud, data locality, and AI infrastructure demands. Nutanix+1

End-User Industries

• Cloud & Hyperscale Providers consume the majority of built capacity, pushing demands for large scale, high-reliability construction.

• Colocation Operators build facilities to lease infrastructure to multiple customers; they account for a large share of new builds.

• Telecommunications & ISPs need data centers to support edge compute, 5G, and data backhaul.

• Financial Services & Banking need highly secure, redundant, and compliant data centers.

• Government / Public Sector & Healthcare need data centers for digital services, e-government, health records and AI processing.

• Media, Entertainment & E-commerce for content delivery networks, real-time streaming, and online retail infrastructure.

Factors Driving Growth

• Rising demand for AI, big data, machine learning workloads requiring power-dense computing and high storage density. DLA Piper+1

• Expansion of cloud services and digital transformation across industries.

• Edge computing demands: low latency requirements for IoT, 5G, real-time applications.

• Government policies pushing data sovereignty, green infrastructure, net-zero targets, renewable energy sourcing.

• Financial investment interest: investors increasingly view data center real estate as stable and scalable assets. Europe is expected to see €100 billion in data center investment by 2030. Data Center Knowledge

• Modular design and prefabrication methods reducing build times and cost.

Forecast Period Challenges & Risks

• Power grid instability and limited renewable energy in some areas.

• Rising electricity prices and carbon regulation increasing operating costs.

• Land scarcity, especially in major metropolitan or well-connected regions.

• Regulatory delays in permitting, zoning, and environmental approvals.

• Competition for water, especially for cooling.

• Local resistance and community concerns over environmental impact.

Conclusion

The Europe Data Center Construction Market is entering a strong growth phase. Valued between USD 47-60 billion in 2024-2025, the market is expected to continue expanding through 2030 and beyond, potentially reaching USD 140-200 billion by 2035 under current trends. Key drivers are AI, cloud growth, sustainability pressures, and data sovereignty demands.

Innovation in construction methods, energy efficiency, cooling technologies, and regulatory support will determine which players succeed. Stakeholders that can secure renewable power, streamline permitting, and deliver high-performance, sustainable facilities will have a competitive advantage. Europe’s data center infrastructure is becoming foundational for its digital economy, research capacity, and global competitiveness.

Frequently Asked Questions (FAQ)

Q1: What is the current market size of Europe data center construction?
Estimated between USD 47.1 billion (2024) and USD 59.45 billion (2025), depending on sources. GMI Research+1

Q2: What is the expected growth rate (CAGR)?
Forecasts from 2025-2030 show CAGR between 7.4% and 12.5%, depending on scope and infrastructure segments. Grand View Research+1

Q3: Which countries lead the market?
Germany leads with roughly 14-15% share, followed by UK, France, Netherlands. Nordics and southern European countries are emerging. Mordor Intelligence+1

Q4: What are main infrastructure segments in construction?
Power & electrical infrastructure, cooling systems, mechanical/civil shell, IT hardware, security and monitoring. Cooling and power distribution are fastest-growing segments. Grand View Research+1

Q5: What are the biggest challenges?
Power supply constraints, regulatory and permitting delays, land availability, high cost, environmental regulations, talent shortages. algorithmwatch.org+1

Q6: What role does sustainability play?
Sustainability is central. Renewable energy sourcing, waste heat reuse, energy efficiency (PUE optimization), and regulatory pressure (ESG) are shaping both design and construction decisions.

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