Europe Data Center Construction Market to Reach $152.33B by 2034, Driven by Cloud Adoption, AI Demand, and Sustainability Initiatives

The Europe data center construction market was valued at approximately USD 69.91 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 8.10% from 2025 to 2034, reaching nearly USD 152.33 billion by 2034. This expansion is driven by rapid digitalisation, increasing cloud adoption, technological advancements, and rising demand for energy and water resources across industries. Cloud computing adoption remains high across Europe, with Finland leading at 78%, followed by Sweden (72%) and Norway (71%) in 2023. Countries such as Denmark, Malta, Ireland, the Netherlands, and Italy also reported strong usage rates between 61% and 70%. The Software as a Service (SaaS) model is now used by over 95% of European enterprises for daily operations. Between 2021 and 2023, cloud adoption increased by 4 percentage points, with nearly 45% of European businesses using cloud technologies by 2023—fueling demand for new data center infrastructure. The e-commerce sector has also contributed significantly to growth. In 2021, the European e-commerce market reached EUR 718 billion, growing at 13% annually. Northern and Western Europe led online shopping activity, with 73% of internet users making purchases online. Western Europe accounted for nearly 63% of B2C e-commerce turnover and is expected to remain a key driver for data center construction. Sustainability is becoming a central focus in the sector. New EU regulations require data center operators to improve energy efficiency, reduce freshwater use, increase reliance on renewable energy, and reuse waste heat. Cooling systems must also be evaluated for effectiveness, with a strong emphasis on lowering carbon emissions. Technological innovation, particularly the rise of generative AI, is increasing demand for hyperscale data centers. These facilities require substantial power and cooling capacity, with major centers in Paris, Frankfurt, and Dublin needing up to 700 MW of electricity. This has led companies to diversify energy sources and manage water use more responsibly. Rising demand for advanced infrastructure features such as raised flooring has also emerged. High-pressure laminate is increasingly used for data center tiles due to its static-dissipative properties and ease of maintenance. Germany is expected to lead the market with a 23% share and a CAGR of 8.4% through 2034, supported by strong adoption of sustainable construction practices. Key players in the market include AECOM, a global infrastructure consultancy; Collen Construction Limited, an Irish firm with expertise in complex projects; Delta Electronics, a leader in power and thermal management; and Mercury Engineering, which provides mechanical and electrical services for data centers. Other notable companies include DPR Construction, Dell Inc., Legrand SA, NTT Ltd., Schneider Electric SE, and Jacobs Solutions Inc. The market is segmented by infrastructure type, data center size, tier classification, end-use industry, and country. These segments reflect the evolving needs of cloud providers, enterprises, and government agencies across Europe. For more information, visit the report at https://www.researchandmarkets.com/r/2feqnt. ResearchAndMarkets.com is a leading provider of global market research reports and data, offering insights into international and regional markets, industries, companies, products, and emerging trends.