Europe Sustainable Data Center Market Outlook & Forecast 2024-2029 – Business Wire
The European Sustainable Data Center Market is on the rise, with a value of USD 8.88 billion in 2023 set to reach USD 16.89 billion by 2029, growing at a rate of 11.31%. As organizations increasingly prioritize energy efficiency and sustainability, the industry is evolving rapidly.
One standout example is Google, a key player in the data center market known for its commitment to sustainability. The company aims to power all its data centers with carbon-free energy by 2030, utilizing AI to optimize cooling systems and reduce energy use by up to 30%.
When it comes to site selection for data centers in Europe, accessibility to renewable energy is a key factor. The Nordic region, for instance, is ideal for green data center development due to its renewable energy sources and minimal need for water-based cooling systems. Additionally, countries like Spain, Portugal, and Greece are attracting investments in renewable energy and offer ample space for data center development compared to more crowded markets like Germany and the UK.
In Western Europe and the Nordic region, we see a concentration of data center development, with companies increasingly drawn to the European sustainable data center market. Eastern European countries, like Poland and Romania, are also making strides in investing in renewable energy to reduce PUE levels and attract data center investors.
Renewable energy companies such as Orsted, Engie, and Enel Group are working to supply clean power to data center operators, with many setting up new plants exclusively dedicated to data centers. For example, Google has partnered with Engie to acquire wind energy in Belgium through a Power Purchase Agreement (PPA).
Colocation vendors and hyperscale operators alike, including Equinix, Microsoft, and AWS, are adopting sustainable technologies in their data centers. The industry is also seeing an increasing focus on renewable energy sources, with major players striving to meet energy requirements with renewable sources like wind and hydroelectric power.
Innovations like the use of Hydrotreated Vegetable Oil (HVO) fuel and the adoption of fuel cells are contributing to sustainable practices in the European data center market. For instance, Kao Data’s KLON-02 data center in the UK operates entirely on renewable energy and uses HVO fuel for backup generators. Equinix is exploring the use of hydrogen fuel cells at its Dublin data center to further enhance sustainability.
Government initiatives are also driving the push toward sustainability in data centers, with the European Union setting strict rules for cutting carbon emissions and aiming for carbon neutrality by 2050. In the UK, the government’s commitment to Net Zero Emissions by 2050 is compelling data center operators to become carbon neutral.
Overall, the European Sustainable Data Center Market is seeing significant growth and innovation, with a focus on sustainability, renewable energy, and energy efficiency shaping the industry’s future.
