European data center construction market projected to hit $32.27 billion by 2030
- The European data center market has significantly expanded due to hyperscale companies and the growth of edge computing.
- Governments are encouraging investments in data centers through tax incentives and support for renewable energy.
- The market is projected to grow to $32.27 billion by 2030, indicating a strong trend towards digitalization.
In Europe, the data center construction market is experiencing significant growth, driven by various technological advancements and demands. As of May 2025, the sector's expansion is fueled by a surge in requirements from hyperscale companies, the increasing reliance on artificial intelligence, and the expansion of edge computing facilities. These factors have led to an unprecedented demand for data center capacity from large corporations, including financial institutions and healthcare organizations, which has consequently influenced the overall market dynamics. Governments within Europe are also playing a vital role in stimulating this market's growth. Initiatives aimed at encouraging data center investments include improving land availability for development, reducing electricity costs, providing tax incentives, and facilitating access to renewable energy sources. Such strategic governmental support, especially in regions like Germany, France, and the Netherlands, is expected to fortify the construction market over the forecast period leading to a projected market value of $32.27 billion by 2030. Moreover, there is a notable trend of emerging markets in data center construction such as Amsterdam, Milan, and Warsaw. These cities are becoming increasingly popular choices due to better land access compared to larger cities like London and Berlin, where land availability poses a significant constraint. Other regions, including Marseille and Lyon in France and Nordic countries due to their favorable climates and renewable energy access, are also becoming attractive options for data center investments. The culmination of these trends indicates that the European data center construction market is on a robust upward trajectory, driven by technological advancements, governmental support, and shifting corporate investments towards regions with better infrastructure and lower operational costs. This trajectory not only highlights the importance of data centers in the current technological landscape but also showcases the competitiveness among various European regions aiming to attract investments in this critical sector.