The European data centre market is in frank expansion and expected to reach revenues of €14,722 million by the end of 2024.

The 46% increase follows the record set in 2020 of €10,063 million, according to research and analysis firm Datacentre Pricing (DCP).

Covering 17 European countries, 650 data centre providers and over 1,300 data centre facilities, analysts at the think tank also forecast European public cloud revenues are forecast to be €53,440 million as of the end of 2020, increasing to €81,726 million by the end of 2024, an increase of 53% over the period.

In its research, DCP highlights that each of the data centre markets are continuing to grow despite the increase in public cloud services suggesting that the services are broadly complementary. 

“Data centre providers report that cloud services are becoming a key customer segment, accounting for up to 30% of their revenues,” it reads. 

Increasingly, European enterprises are pursuing a hybrid cloud strategy and are interconnecting via a data centre to enable a mix of cloud and colocation services – providing an uplift in revenues to both the cloud and the data centre provider.

The data centre landscape highlights the new investment that is being made in Europe, in particular by US data centre entrants including CyrusOne, QTS, ServerChoice, Iron Mountain and Vantage Data Centers. 

These new entrants are introducing new campus Data Centres with Vantage Data Centers developing campus facilities in Berlin, Frankfurt, Milan, Warsaw and Zurich.

The continued growth in the key five FLAP+D country markets (Germany, UK, Netherlands, France and Ireland) – which account for 70% of data centre space – (consisting of over 2.5 million m2 of data centre space out of a total of 3.6 million m2 of space across the 17 countries).

Besides the core markets of the UK, Germany, the Netherlands and France, some countries are seeing extensive new investment, for example Switzerland, Poland and Ireland. 

“The European data centre market is undergoing a boom in new facility build-outs, with over 70 projects underway in 12 countries totalling 851,000 m2 from 2021 onwards, including increases from under 10% in Sweden up to over 100% in Ireland,” researchers said.