The report "Europe Data Center Colocation Market by Service Type (Traditional and Managed), Service Scale (Retail and Wholesale), Workload Type (General Purpose IT and HPC & AI), End User (Enterprises and Hyperscalers) with Impact of AI/Gen AI - Forecast to 2030" is projected to grow from USD 21.97 billion in 2025 and to reach USD 41.08 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 13.3% during the forecast period.
Browse 130 market data Tables and 57 Figures spread through 190 Pages and in-depth TOC on "Europe Data Center Colocation Market by Service Type (Traditional and Managed), Service Scale (Retail and Wholesale), Workload Type (General Purpose IT and HPC & AI), End User (Enterprises and Hyperscalers) with Impact of AI/Gen AI - Forecast to 2030"
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The market is expected to expand as enterprises across Europe adopt hybrid cloud models to strike a balance between performance, compliance, and operational flexibility. Organizations are increasingly shifting workloads to colocation facilities to address data residency obligations and infrastructure resilience requirements. Regulatory enforcement related to data protection is anticipated to strengthen demand for locally hosted digital infrastructure. Rising power costs are prompting operators to modernize their facilities with energy-efficient designs and renewable energy sources. At the same time, cloud providers are expanding regional capacity to reduce latency and support artificial intelligence workloads across European markets.
“By workload type, the general-purpose IT segment is expected to hold the largest market size during the forecast period”
General-purpose IT, covering standard compute, storage, and networking workloads, is expected to remain the largest workload category in the data center colocation market in Europe. Growth is supported by steady cloud migration initiatives and enterprise digital transformation programs across industries. Enterprises are increasingly placing core applications such as ERP, CRM, virtualization platforms, and business-critical web applications within colocation facilities. This shift helps organizations improve application availability while maintaining tighter control over infrastructure costs. As hybrid IT adoption expands, buyers favor colocation providers that integrate effectively with both public cloud platforms and private environments. Although demand for HPC and AI workloads is rising, higher power density requirements limit their overall share compared to general-purpose IT.
“By end user, the hyperscalers segment is expected to witness a higher growth rate than the enterprises segment during the forecast period”
Compared to enterprises, hyperscalers are expected to exhibit faster growth in the data center colocation market in Europe during the forecast period, driven by increasing demand for large-scale capacity to support expanding cloud platforms and digital service ecosystems. Colocation enables hyperscalers to deploy automation-ready and energy-efficient infrastructure without owning or operating facilities. Leading cloud providers are relying on colocation partners to support burst workloads and accelerator-driven computing requirements. Standardized high-density deployments and strong interconnection ecosystems improve scalability and latency performance. Flexible contracts and regional coverage further strengthen colocation adoption as hyperscalers pursue modular expansion and sustainability objectives.
“France is expected to be the fastest-growing country-level market during the forecast period”
France is expected to be the fastest-growing colocation market for data centers in Europe during the forecast period. Growth is supported by accelerating cloud adoption and rising artificial intelligence workloads across Paris, Marseille, and other key metropolitan locations. France is strengthening its colocation position through dense interconnection hubs, strong domestic network coverage, and improving subsea cable connectivity nationwide. Strict data protection requirements, sustainability targets, and renewable policies are increasing demand for scalable, high-density, and efficient colocation facilities.
The major players in the data center colocation market in Europe include Equinix (US), Digital Realty (US), NTT Data Corporation (Japan), Colt Data Centre Services (UK), NorthC Group (Netherlands), Iron Mountain (US), China Telcom (China), and CyrusOne (US).
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