European data centers continue to grow and expand. Although the FLAP market continues to be one of the largest data center markets in Western Europe, other markets have also grown significantly in recent years. This is because investments are particularly relevant in emerging data center markets, such as Madrid and Lisbon.
1 FLAP Market
2 emerging data center hubs in Europe
2.1 Data center market in Spain
2.2 Portugal data center market
The FLAP market, an acronym for “Frankfurt, London, Amsterdam and Paris”, concentrates the largest number of data centers in Western Europe. These locations benefit from significant investments from major data center providers such as Equinix and Digital Realty.
According to a study, the FLAP data center market is expected to grow at a compound annual growth rate (CAGR) of 2.86% between 2021 and 2027, growing from approximately $4.3 billion (€3.9 billion ) to approximately 5.1 billion dollars (4.6 billion euros). . Research and markets report.
Emerging data center hubs in Europe
In addition to these leading data center markets, there are other emerging CPD markets in Southern Europe, such as Madrid, Barcelona and Lisbon.
The strategic location of the Iberian Peninsula has helped attract investments from connectivity and data center providers. Furthermore, the region has numerous submarine cable links connecting with Africa, North America, Latin America and Europe, such as: Grace Hopper, 2Africa, EllaLink, Medusa, ORVAL or SeaMeWe-3.
Data center market in Spain
Spain’s strategic location has attracted a growing number of traffic exchange points and submarine cables to connect the Iberian Peninsula with the rest of the world. This has also spurred investment in the data center market. Major data center providers such as Equinix and Digital Realty are also making significant investments in this region.
Madrid Digital Center
As a result, in recent years, the Spanish capital has become a digital hub for Southern Europe. Madrid has an ecosystem of digital businesses and IT infrastructures to connect more and more companies and users. This technological hub is evolving so quickly that it is even estimated that, in the coming years, it will be able to compete with the digital hubs of the FLAP market.
In 2022, according to Colliers’ Data Centers Snapshot report, there were 37 data centers from major operators in Madrid. In terms of capacity, the Madrid data center market is estimated to reach a capacity of 650 MV IT in the next few years.
Barcelona Digital Center
Barcelona’s digital hub is also booming. In 2022, according to the Colliers report, there were 12 data centers of the main operators in Barcelona. In terms of capacity, it is estimated that the Barcelona CPD market will reach a capacity of 145 MV IT in the next few years. Additionally, the city has increased its international internet bandwidth at a CAGR of 35%.
Along with Madrid and Barcelona, other Spanish cities, such as Valencia and Malaga, also have growing digital ecosystems promoting data centers and connectivity services.
Data center market in Portugal
Thanks to its strategic location and the arrival of numerous submarine cables such as 2Africa, Medusa or Columbus III, the development of the data center market is also growing strongly in Portugal. The good connectivity of the region and the availability of renewable energy sources also contribute to this growth.
Lisbon digital hub
In recent years, Lisbon has become a European digital hub. The Portuguese capital has one of the fastest growing tech ecosystems. According to the State of Lisbon’s Startup Ecosystem 2022 report, the overall value of technology startups founded or based in Lisbon multiplied by 27 between 2016 and 2022, from around 818 million euros to over 21 billion euros.
In terms of capacity, the Lisbon data center market is estimated to reach a capacity of 116 MV IT in the next few years, according to the Colliers report.
The growth of data center markets in Europe is closely related to the adoption of the cloud, the Internet of Things, artificial intelligence and 5G, among other trends and technologies. Which, taken together, also accelerate digitalization processes in the world.