Europe Data Center Colocation Market

The data center colocation market in Europe is projected to grow from USD 21.97 billion in 2025 to USD 41.08 billion by 2030. Growth is expected to expand at a 13.3% CAGR, supported by the accelerating adoption of cloud migration across large enterprise IT environments. Enterprise IT modernization is increasing the demand for high-density infrastructure that can support AI and HPC workloads reliably. Key markets include the UK, Germany, France, the Netherlands, and the Nordics, reflecting strong regional adoption of colocation. Enterprises are adopting hybrid and multicloud architectures, which increases demand for low-latency interconnection between campuses and cloud regions. Stricter data protection and sovereignty regulations are strengthening demand for locally compliant hosting solutions across regulated European industries.

Across Europe, leading providers such as Equinix (US), Digital Realty (US), NTT Data (Japan), QTS Data Centers (US), and KDDI Corporation (Japan) continue to expand their footprints to support sovereign cloud initiatives, mission-critical hosting, and AI-ready deployments. Operators are prioritizing high-power designs, advanced cooling systems, and energy-efficient infrastructure to meet the rising expectations for performance and sustainability. Investment decisions are increasingly influenced by grid readiness, regulatory alignment, and proximity to major cloud regions. These factors are shaping long-term deployment strategies as enterprises demand resilient, compliant, and scalable colocation environments.

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In May 2025, NTT Data (Japan) announced plans to launch and list a data center real estate investment trust (REIT) on the Singapore Stock Exchange. This REIT will be seeded with six colocation facilities across the US, Europe, and Singapore, totaling over 41,000 square meters and approximately 80 megawatts. The initiative aims to promote growth in NTT’s data center business and maximize corporate value.

EQUINIX

Equinix is a global real estate investment trust focused on interconnection-led colocation and data center services across major international markets. The company operates more than 260 IBX data centers, spanning 33 countries, and supports the enterprise, cloud, and network connectivity requirements of its customers. Its strategy emphasizes software-defined interconnection to enable scalable architectures and access to ecosystems. Equinix provides carrier-neutral environments with connectivity to over 3,000 cloud and network providers. The company continues investing in high-density cooling, sustainability programs, and AI-enabled monitoring. Recent xScale developments support high-power deployments and strengthen hybrid multicloud infrastructure capabilities for large enterprise customers.

DIGITAL REALTY

Digital Realty is a global provider of carrier-neutral data centers and interconnection services, operating more than 300 facilities across over 25 countries. Its strategy is built around PlatformDIGITAL, which supports modular, AI-ready data halls, build-to-suit campuses, and renewable energy sourcing. The company’s strengths include scalable, high-density power, strong interconnection frameworks, and a focus on sustainability through the use of green energy and carbon-neutral designs. In July 2024, Digital Realty acquired a colocation data center campus in Slough, UK, for USD 200 million, strengthening its presence in the London market. The acquisition expands access to interconnected services and supports rising regional demand for digital infrastructure. Digital Realty continues to expand geographically through acquisitions while vertically integrating power, cooling, and interconnection layers to deliver reliable, compliant, and energy-efficient colocation services globally.

Market Ranking

In 2024, the data center colocation market in Europe remained highly competitive, with Equinix, Digital Realty, NTT Global Data Centers, Telehouse KDDI, and Global Switch together accounting for an estimated 40% to 45% of the regional market share. Leading operators continued to expand AI-ready capacity and introduce higher-density zones supported by liquid cooling. Providers also strengthened renewable energy sourcing to meet customer sustainability requirements. At the same time, operators accelerated campus expansion in major European metropolitan areas, prioritizing efficient power blocks and scalable designs. Telehouse continued to invest in low-latency interconnection hubs, while others expanded carrier-rich environments to support cloud on-ramps and enterprise connectivity. Overall, these moves reflect Europe’s shift toward AI-driven infrastructure, energy-aware deployments, and scalable colocation platforms designed for growing GPU, cloud, and HPC workloads.

Related Reports:

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/GenAI - Forecast to 2030

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