The UK, Germany, Sweden and Spain lead investment, while power constraints are accelerating expansion into Nordic and secondary European markets.
European Hyperscale Data Center Market
Dublin, Aug. 31, 2026 (GLOBE NEWSWIRE) — The “Europe Hyperscale Data Center Market – Industry Outlook & Forecast 2026-2031” has been added to ResearchAndMarkets.com’s offering.
The Europe hyperscale data center market was valued at USD 52.02 billion in 2025 and is projected to reach USD 139.90 billion by 2031, expanding at a compound annual growth rate of 17.93%. Rapid adoption of artificial intelligence, cloud computing, high-performance computing, 5G connectivity and data-intensive digital services is driving demand for large-scale data center infrastructure across the region.
Enterprises in finance, healthcare, government, education, retail, manufacturing, transportation and e-commerce are increasing investments in AI and digital transformation. These workloads require advanced graphics processing units, high-capacity servers, scalable storage and high-bandwidth networking. As server and rack densities rise, operators are accelerating deployment of direct-to-chip liquid cooling and immersion cooling systems.
In June 2025, Global Switch installed single-phase immersion, two-phase immersion and direct-to-chip liquid cooling technologies at its London East Docklands campus. Kao Data also announced plans in March 2025 to equip a new UK facility with direct-to-chip cooling. Operators are additionally deploying racks capable of supporting more than 50 kW, with atNorth’s DEN01 facility in Copenhagen offering rack capacities ranging from 40 kW to 100 kW.
Cloud Computing and Digitalization Support Market Expansion
Demand for cloud services continues to grow across the UK, Germany, France, the Netherlands, Ireland, Spain, the Nordics and Central and Eastern Europe. In July 2025, Oracle announced an investment of approximately USD 3 billion to expand cloud and AI infrastructure in Germany, including its Frankfurt cloud region. In September 2025, Google invested approximately USD 6.81 billion in a hyperscale data center at Waltham Cross in Hertfordshire, supporting the UK’s expanding digital economy.
Edge computing, smart-city programs, big data and Internet of Things deployments are also increasing requirements for low-latency processing and resilient regional infrastructure. Continued investment in terrestrial fiber and submarine cable systems is strengthening connectivity between European markets and global digital hubs. The planned 391-mile Verena subsea cable between Denmark and the UK is among the projects expected to improve cross-border capacity.
Sustainability Reshapes European Data Center Development
Hyperscale operators are prioritizing renewable energy procurement, energy-efficient cooling, heat reuse, lithium-ion UPS batteries and lower-emission backup generation. In March 2025, Telehouse signed a 10-year power purchase agreement with RWE Group to source wind power from the London Array for its London Docklands campus. Telehouse also announced plans for a London data center using hydrotreated vegetable oil-powered backup generators.
Data center heat-recovery projects are gaining momentum, particularly in Nordic markets. In August 2025, Borealis Data Center partnered with Finnish utility Loiste Lampo Oy to supply recovered heat from its Kajaani campus to nearby homes and businesses. Free cooling and adiabatic cooling are also expanding, with operators using favorable European climates to reduce electricity consumption and greenhouse gas emissions.
Regional Investment Shifts Toward Emerging Data Center Hubs
The UK, Germany, Sweden and Spain ranked among Europe’s largest hyperscale data center investment markets in 2025. The UK accounted for approximately 20% of regional investment. However, power availability, land constraints and construction costs in established hubs are encouraging operators to evaluate Norway, Sweden, Finland, Spain, Italy, Poland and Austria.
The Nordics remain attractive because of renewable energy availability, climate conditions and international connectivity. Prime Data Centers announced plans in January 2026 to invest approximately USD 2 billion in an AI-ready facility outside Helsinki. In Norway, ASP Data Center acquired the former Dale industrial and crypto-mining site in September 2025 for a planned AI-ready development involving approximately USD 151 million.
Government support is also strengthening the market outlook. France is facilitating access to grid-connected development sites, while Sweden’s Digitalisation Strategy 2025-2030 establishes priorities for national digital and AI infrastructure. The UK invested approximately USD 283.7 million in January 2026 to launch a cyber strategy focused on digital public services and infrastructure security.
Infrastructure and Competitive Landscape
Investment spans IT, electrical, mechanical and general construction infrastructure. Key categories include servers, storage, networking, UPS systems, generators, switchgear, power distribution units, cooling systems, racks, fire protection, physical security, engineering services and data center infrastructure management software. Demand is rising for NVMe and flash storage, networking capacities of 400 GbE and above, intelligent power distribution, advanced fire suppression and AI-optimized cooling.
The competitive landscape includes Amazon Web Services, Apple, Colt Data Centre Services, CyrusOne, Digital Realty, Equinix, Global Switch, Google, Iron Mountain, Meta, Microsoft, NTT DATA, STACK Infrastructure, Telehouse, Vantage Data Centers, VIRTUS Data Centres and Yondr Group. Infrastructure suppliers include ABB, Cisco, Dell Technologies, Eaton, Hewlett Packard Enterprise, Hitachi Energy, Huawei Technologies, Legrand, Lenovo, NVIDIA, Schneider Electric, Siemens and Vertiv.
New market entrants and institutional investors are adding development capacity, while construction and engineering specialists support increasingly complex hyperscale campuses. With AI workloads, cloud adoption, sustainability requirements and government-backed digital strategies converging, Europe’s hyperscale data center market is positioned for substantial investment through 2031.
Market Coverage
The market analysis covers Tier I through Tier IV facilities and air-based and liquid-based cooling technologies. Geographic coverage includes the UK, Germany, France, the Netherlands, Ireland, Italy, Spain, Denmark, Sweden, Norway, Finland, Iceland, Russia, Poland, Austria and other Western, Nordic, Central and Eastern European markets.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 453 |
| Forecast Period | 2025-2031 |
| Estimated Market Value (USD) in 2025 | $52.02 Billion |
| Forecasted Market Value (USD) by 2031 | $139.9 Billion |
| Compound Annual Growth Rate | 17.9% |
| Regions Covered | Europe |
For more information about this report visit https://www.researchandmarkets.com/r/69ep7q
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- European Hyperscale Data Center Market
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