The data center market in Europe is expected to post a CAGR of almost 11% during the period 2019-2023, according to the latest market research report by Technavio.
The implementation of the General Data Protection Regulation (GDPR) has increased the construction of data centers in Europe over the past few years. This is because the regulation necessitates enterprises to store confidential and sensitive data to an EU-based data center.
This is driving banking, financial services, and insurance (BFSI) firms in the region to migrate to an EU located cloud, which is driving the demand for data centers in the region.
As per Technavio, the growing investments in hyperscale data centers by colocation providers will have a positive impact on the market and contribute to its growth significantly over the forecast period. This research report also analyzes other important trends and market drivers that will affect market growth over 2019-2023.
The growth in the number of smart cities, smart grids and the increased adoption of smart homes has resulted in the generation of large amounts of data. This has increased the investments in hyperscale data centers to process such huge volumes of data.
To capitalize on this trend, many colocation service providers and infrastructure service providers have started to offer hyperscale data centers. For instance, in 2018, CyrusOne announced its plans to construct two new hyperscale data centers in the Netherlands. Many such data center construction projects will boost the growth of the market during the forecast period.
A senior analyst at Technavio said:
“Increase in the adoption of cloud-based storage services and the rising number of data center construction projects in the Netherlands will further boost market growth during the forecast period.”
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