Market Forecast by Countries (Germany, United Kingdom, France, Italy, Russia, Spain, Rest of Europe), By Type (Retail colocation, Wholesale colocation), By End-User (Small and Medium-Sized Enterprises (SMEs), Large Enterprises), By Industry (Banking, Financial Services, and Insurance (BFSI), IT and telecom, Government and defense, Healthcare, Research and academics, Retail, Energy, Manufacturing) And Competitive Landscape
| Product Code: ETC4610070 | Publication Date: Jul 2023 | Updated Date: Dec 2025 | Product Type: Report | |
| Publisher: 6Wresearch | Author: Ravi Bhandari | No. of Pages: 200 | No. of Figures: 90 | No. of Tables: 300 |
According to 6Wresearch internal database and industry insights, The Europe Data Center Colocation Market was valued at approximately USD 8.2 billion in 2025 and is projected to reach nearly USD 15.4 billion by 2032, registering a compound annual growth rate (CAGR) of 12 % during the forecast period (2026-2032).
Below mentioned are the evaluation of year-wise growth rate along with key drivers:
| Years | Est. Annual Growth (%) | Growth Drivers |
| 2021 | 9.2% | Increasing demand for cloud services and data storage solutions |
| 2022 | 9.5% | Expanding need for digital transformation and remote work solutions |
| 2023 | 9.8% | Surge in demand for edge computing and IoT solutions |
| 2024 | 10% | Continued growth in big data and AI usage driving data storage needs |
| 2025 | 10.3% | Rising energy demands and adoption of green data center technologies |
The Europe Data Center Colocation Market report thoroughly covers the market by countries, type, end-user, and industry. The report provides an unbiased and detailed analysis of ongoing market trends, opportunities, high-growth areas, and market drivers, which would help stakeholders devise and align their market strategies according to the current and future market dynamics.
| Report Name | Europe Data Center Colocation Market |
| Forecast Period | 2026–2032 |
| CAGR | 12% |
| Market Size (2032) | USD 15.4 billion |
| Growing Sector | IT & Telecom |
The Europe Data Center Colocation Market is seeing robust growth, supported by rising demand for cloud computing, digital transformation, and data storage capabilities. Businesses are increasingly choosing colocation centers for secure data storage and management. The growth of edge computing, IoT, and AI technologies is driving higher demand for these services. Additionally, government-backed incentives for green data centers are accelerating market expansion, encouraging the adoption of environmentally friendly and energy-efficient data storage solutions throughout Europe.
Below mentioned are some growth drivers and their impact on market dynamics:
| Drivers | Primary Segments Affected | Why It Matters |
| Cloud Adoption | Small and Medium-Sized Enterprises (SMEs), Large Enterprises | Cloud computing is driving demand for scalable, secure, and cost-effective data storage solutions. |
| Digital Transformation | IT and Telecom, Large Enterprises | As companies undergo digital transformation, the need for secure and scalable data storage and processing solutions increases. |
| Remote Work | Small and Medium-Sized Enterprises (SMEs), Large Enterprises | Increased adoption of remote work fuels the need for centralized data storage and management solutions. |
| Green Data Centers | Energy, IT and Telecom, Large Enterprises | Governments and organizations are increasingly focusing on sustainable data center operations, pushing for energy-efficient infrastructure. |
| Edge Computing | IT and Telecom, Manufacturing, Research and Academics | Edge computing technologies require localized colocation centers to process data closer to users, boosting demand for colocation services. |
The Europe Data Center Colocation Market size is projected to grow at a CAGR of 12 % during the forecast period (2026–2032). The Europe Data Center Colocation Market is expanding rapidly due to the increasing need for cloud services, big data analytics, edge computing, and AI technologies. Government-backed initiatives promoting energy-efficient and green data centers are boosting demand for colocation services. Furthermore, the market faces challenges, including high operational costs and complexities related to data security, which can slow the adoption process. Overcoming these obstacles will be key to sustaining the market's growth and expansion in Europe.
Below mentioned are some major restraints and their influence on market dynamics:
| Restraints | Primary Segments Affected | What This Means |
| High Capital Investment | IT and Telecom, Large Enterprises | High setup and maintenance costs of colocation centers deter some businesses from adopting colocation services. |
| Data Security Concerns | Small and Medium-Sized Enterprises (SMEs), Large Enterprises | Concerns about the security and privacy of data stored in third-party facilities slow adoption. |
| Regulatory Challenges | All Sectors | Strict data protection laws such as GDPR in Europe add complexity to the management and operation of colocation data centers. |
| Energy Consumption | Energy, IT and Telecom, Manufacturing | The increasing energy consumption of data centers poses sustainability challenges and impacts profitability. |
The Europe Data Center Colocation Industry faces several obstacles, such as large capital investments, regulatory challenges, and the need for enhanced data security. Another pressing issue is the high energy consumption of data centers. To address these challenges, it’s essential to innovate with energy-efficient designs and improve data protection protocols. Solving these problems is critical to keeping pace with the increasing demand for colocation services while meeting sustainability goals and regulatory requirements, allowing for continued growth in the industry.
Some major trends contributing to the development of the Europe Data Center Colocation Market Growth are:
Here are some investment opportunities in the Europe Data Center Colocation Market:
Here are some top companies contributing to the Europe Data Center Colocation Market Share:
| Parameter | Details |
| Company Name | Equinix |
| Headquarters | Redwood City, California, USA |
| Established | 1998 |
| Website | Click Here |
Equinix provides a comprehensive range of colocation and interconnection services, focusing on delivering highly secure, reliable, and energy-efficient data centers.
| Company Name | Digital Realty |
| Headquarters | San Francisco, California, USA |
| Established | 2004 |
| Website | Click Here |
Digital Realty specializes in colocation, cloud, and connectivity services, offering data centers with sustainable operations across Europe and other regions.
| Company Name | Interxion |
| Headquarters | Amsterdam, Netherlands |
| Established | 1998 |
| Website | - |
Interxion provides secure and flexible colocation services across Europe, supporting businesses in digital transformation with efficient data storage solutions.
| Company Name | KDDI |
| Headquarters | Tokyo, Japan |
| Established | 1986 |
| Website | Click Here |
KDDI provides colocation and cloud services across Europe, helping businesses optimize their data storage needs and improve network infrastructure.
| Company Name | Alibaba Cloud |
| Headquarters | Hangzhou, China |
| Established | 2009 |
| Website | Click Here |
Alibaba Cloud offers a wide array of colocation and cloud solutions, focusing on helping enterprises scale and store data securely and cost-effectively.
Various European government programs are helping to drive the adoption of colocation data centers. The EU Green Deal, for example, encourages green data center operations by offering incentives and tax breaks for the use of sustainable energy solutions. In Germany, the Renewable Energy Act (EEG) aids companies in incorporating renewable energy into their operations, supporting the creation of more energy-efficient data centers. The UK Digital Infrastructure Fund also backs investments in data center infrastructure, promoting the expansion of the digital economy.
The future of the Europe Data Center Colocation Market looks promising, with continued innovations in edge computing, AI-driven solutions, and green data center technologies. As cloud adoption and big data analytics grow, businesses will increasingly rely on colocation data centers to manage vast amounts of data securely and efficiently. Government initiatives focused on sustainability will continue to shape the market, making it a key segment in Europe digital infrastructure landscape.
The report offers a comprehensive study of the following market segments and their leading categories.
According to Ritika Kalra, Senior Research Analyst, 6Wresearch, Germany is currently the dominant market in Europe due to its strong emphasis on energy efficiency, digital transformation, and large-scale cloud adoption. The country’s advanced infrastructure, combined with government incentives for sustainable energy, makes it the leading player in the colocation services market. The United Kingdom, France, and the Netherlands follow Germany in terms of market share.
Retail colocation is expected to dominate the market due to increasing demand from SMEs and small-scale businesses seeking affordable, flexible, and secure data storage solutions. Retail colocation services allow businesses to lease space in shared facilities, which is more cost-effective than wholesale colocation for smaller entities.
SMEs are expected to be the leading end-user in the European colocation market as businesses of all sizes continue their digital transformation efforts. SMEs find retail colocation particularly attractive due to its scalability and cost-effectiveness.
The BFSI industry is expected to dominate the market due to its high demand for data security, disaster recovery, and regulatory compliance. Financial institutions in Europe rely heavily on colocation services for secure and efficient data storage solutions.
The report offers a comprehensive study of the following market segments:
| 1 Executive Summary |
| 2 Introduction |
| 2.1 Key Highlights of the Report |
| 2.2 Report Description |
| 2.3 Market Scope & Segmentation |
| 2.4 Research Methodology |
| 2.5 Assumptions |
| 3 Europe Data Center Colocation Market Overview |
| 3.1 Europe Regional Macro Economic Indicators |
| 3.2 Europe Data Center Colocation Market Revenues & Volume, 2022 & 2032F |
| 3.3 Europe Data Center Colocation Market - Industry Life Cycle |
| 3.4 Europe Data Center Colocation Market - Porter's Five Forces |
| 3.5 Europe Data Center Colocation Market Revenues & Volume Share, By Countries, 2022 & 2032F |
| 3.6 Europe Data Center Colocation Market Revenues & Volume Share, By Type , 2022 & 2032F |
| 3.7 Europe Data Center Colocation Market Revenues & Volume Share, By End-User, 2022 & 2032F |
| 3.8 Europe Data Center Colocation Market Revenues & Volume Share, By Industry, 2022 & 2032F |
| 4 Europe Data Center Colocation Market Dynamics |
| 4.1 Impact Analysis |
| 4.2 Market Drivers |
| 4.3 Market Restraints |
| 5 Europe Data Center Colocation Market Trends |
| 6 Europe Data Center Colocation Market, 2022 & 2032F |
| 6.1 Europe Data Center Colocation Market, Revenues & Volume, By Type , 2022 & 2032F |
| 6.2 Europe Data Center Colocation Market, Revenues & Volume, By End-User, 2022 & 2032F |
| 6.3 Europe Data Center Colocation Market, Revenues & Volume, By Industry, 2022 & 2032F |
| 7 Germany Data Center Colocation Market, 2022 & 2032F |
| 7.1 Germany Data Center Colocation Market, Revenues & Volume, By Type , 2022 & 2032F |
| 7.2 Germany Data Center Colocation Market, Revenues & Volume, By End-User, 2022 & 2032F |
| 7.3 Germany Data Center Colocation Market, Revenues & Volume, By Industry, 2022 & 2032F |
| 8 United Kingdom Data Center Colocation Market, 2022 & 2032F |
| 8.1 United Kingdom Data Center Colocation Market, Revenues & Volume, By Type , 2022 & 2032F |
| 8.2 United Kingdom Data Center Colocation Market, Revenues & Volume, By End-User, 2022 & 2032F |
| 8.3 United Kingdom Data Center Colocation Market, Revenues & Volume, By Industry, 2022 & 2032F |
| 9 France Data Center Colocation Market, 2022 & 2032F |
| 9.1 France Data Center Colocation Market, Revenues & Volume, By Type , 2022 & 2032F |
| 9.2 France Data Center Colocation Market, Revenues & Volume, By End-User, 2022 & 2032F |
| 9.3 France Data Center Colocation Market, Revenues & Volume, By Industry, 2022 & 2032F |
| 10 Italy Data Center Colocation Market, 2022 & 2032F |
| 10.1 Italy Data Center Colocation Market, Revenues & Volume, By Type , 2022 & 2032F |
| 10.2 Italy Data Center Colocation Market, Revenues & Volume, By End-User, 2022 & 2032F |
| 10.3 Italy Data Center Colocation Market, Revenues & Volume, By Industry, 2022 & 2032F |
| 11 Russia Data Center Colocation Market, 2022 & 2032F |
| 11.1 Russia Data Center Colocation Market, Revenues & Volume, By Type , 2022 & 2032F |
| 11.2 Russia Data Center Colocation Market, Revenues & Volume, By End-User, 2022 & 2032F |
| 11.3 Russia Data Center Colocation Market, Revenues & Volume, By Industry, 2022 & 2032F |
| 12 Spain Data Center Colocation Market, 2022 & 2032F |
| 12.1 Spain Data Center Colocation Market, Revenues & Volume, By Type , 2022 & 2032F |
| 12.2 Spain Data Center Colocation Market, Revenues & Volume, By End-User, 2022 & 2032F |
| 12.3 Spain Data Center Colocation Market, Revenues & Volume, By Industry, 2022 & 2032F |
| 13 Rest of Europe Data Center Colocation Market, 2022 & 2032F |
| 13.1 Rest of Europe Data Center Colocation Market, Revenues & Volume, By Type , 2022 & 2032F |
| 13.2 Rest of Europe Data Center Colocation Market, Revenues & Volume, By End-User, 2022 & 2032F |
| 13.3 Rest of Europe Data Center Colocation Market, Revenues & Volume, By Industry, 2022 & 2032F |
| 14 Europe Data Center Colocation Market Key Performance Indicators |
| 15 Europe Data Center Colocation Market - Opportunity Assessment |
| 15.1 Europe Data Center Colocation Market Opportunity Assessment, By Countries, 2022 & 2032F |
| 15.2 Europe Data Center Colocation Market Opportunity Assessment, By Type , 2022 & 2032F |
| 15.3 Europe Data Center Colocation Market Opportunity Assessment, By End-User, 2022 & 2032F |
| 15.4 Europe Data Center Colocation Market Opportunity Assessment, By Industry, 2022 & 2032F |
| 16 Europe Data Center Colocation Market - Competitive Landscape |
| 16.1 Europe Data Center Colocation Market Revenue Share, By Companies, 2025 |
| 16.2 Europe Data Center Colocation Market Competitive Benchmarking, By Operating and Technical Parameters |
| 17 Company Profiles |
| 18 Recommendations |
| 19 Disclaimer |
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