The Europe data center power market was worth USD 2.81 billion in 2024. The European market is estimated to reach USD 5.53 billion by 2033 from USD 3.03 billion in 2025, rising at a CAGR of 7.81% from 2025 to 2033.
Data center power is a crucial segment in the entire data center industry and focus on the energy infrastructure required to support the operation of data centers. Data center power includes power distribution systems, backup power solutions, energy storage, and advanced power management technologies designed to ensure uninterrupted and efficient energy supply. The demand for data center power is rapidly growing owing to the increasing
As data centers consume substantial amounts of electricity to power servers, cooling systems, and other critical infrastructure, the demand for reliable and sustainable power solutions has become a top priority for operators across Europe. The European data center power market has been experiencing significant growth from the last few years due to the rapid expansion of digital services, cloud computing, and the increasing adoption of artificial intelligence and IoT technologies. Germany, the UK, and the Nordic regions are at the forefront of this transformation by leveraging renewable energy sources like wind, solar, and hydropower to reduce carbon emissions. For instance, the Nordic countries, with their abundant renewable energy resources and cooler climates, have become attractive hubs for energy-efficient data center operations. According to a report by CBRE Group, the total power capacity of data centers in Europe exceeded 12 gigawatts in 2023, which is indicating the pivotal role of Europe in the global data center power landscape. This trend is expected to continue as operators increasingly invest in innovative power solutions to meet both operational and environmental goals.
The rapid adoption of cloud computing is a significant driver of the Europe data center power market. Businesses across sectors are increasingly migrating to cloud-based platforms, leading to a surge in demand for data storage and processing capabilities. According to Eurostat, over 60% of European enterprises utilized cloud computing services in 2022, a substantial increase from previous years. This shift necessitates robust power infrastructure to support the high energy consumption of cloud data centers, which often operate around the clock. Hyperscale data centers, which can consume up to 100 megawatts of power, are becoming more prevalent, further driving the need for advanced power solutions to ensure uninterrupted and efficient operations.
The emphasis on sustainability and renewable energy integration is another key driver shaping the Europe data center power market. The European Union’s Green Deal and Climate Neutral Data Centre Pact have set ambitious targets for reducing carbon emissions, pushing data center operators to adopt renewable energy sources. According to the International Energy Agency, renewable energy accounted for nearly 40% of the EU’s electricity generation in 2022. Countries like Sweden and Norway are leveraging hydropower and wind energy to power data centers, with some facilities achieving Power Usage Effectiveness (PUE) ratios as low as 1.1. This focus on green energy is driving innovation in energy storage and management systems, transforming the power market landscape.
One of the major restraints in the Europe data center power market is the high cost of energy and operational expenses. According to Eurostat, electricity prices for non-household consumers in the European Union averaged €0.20 per kilowatt-hour in 2022, with countries like Germany and Denmark experiencing even higher rates. These elevated costs significantly impact the profitability of data center operations, particularly for smaller operators. Additionally, the need for continuous power supply and backup systems, such as uninterruptible power supplies (UPS) and diesel generators, further escalates operational expenditures. This financial burden can deter new investments and limit the expansion of existing facilities, particularly in regions with less favorable energy pricing.
Stringent regulatory and environmental compliance requirements pose another significant restraint for the Europe data center power market. The European Union’s Energy Efficiency Directive mandates strict energy performance standards for data centers, pushing operators to adopt costly upgrades to meet these regulations. According to the European Environment Agency, data centers account for approximately 2.7% of the EU’s total electricity consumption, drawing scrutiny from policymakers. Compliance with these regulations often requires significant capital investment in energy-efficient technologies and renewable energy integration, which can be financially burdensome. Furthermore, the complexity of navigating varying national regulations across EU member states adds to the operational challenges, slowing down market growth.
The growing emphasis on renewable energy presents a significant opportunity for the Europe data center power market. According to the European Commission, the EU aims to achieve a 45% share of renewable energy in its total energy consumption by 2030, up from 22% in 2021. This ambitious target is driving investments in wind, solar, and hydropower projects, creating opportunities for data centers to integrate sustainable energy solutions. Countries like Sweden and Norway, which already generate over 50% of their electricity from renewables, are leading the way. By leveraging these renewable sources, data centers can reduce operational costs, meet regulatory requirements, and enhance their sustainability credentials, attracting environmentally conscious clients.
The increasing adoption of advanced power management technologies offers another major opportunity for the Europe data center power market. Innovations such as AI-driven energy optimization, modular UPS systems, and lithium-ion batteries are transforming how data centers manage power consumption. According to the International Energy Agency, implementing such technologies can improve energy efficiency by up to 30% in data centers. These advancements not only reduce energy costs but also enhance operational reliability and scalability. As hyperscale data centers expand across Europe, the demand for cutting-edge power management solutions is expected to grow, creating a lucrative market for technology providers and driving further innovation in the sector.
A major challenge facing the Europe data center power market is the strain on existing grid infrastructure. The rapid growth of data centers, particularly hyperscale facilities, has significantly increased electricity demand, often outpacing the capacity of local power grids. According to the European Network of Transmission System Operators for Electricity, electricity demand in the EU is projected to grow by 1.5% annually through 2030, with data centers being a key contributor. In regions like Ireland, where data centers account for nearly 14% of total electricity consumption as reported by the Sustainable Energy Authority of Ireland, grid congestion and reliability issues are becoming increasingly common. Upgrading grid infrastructure requires substantial investment and time, creating a bottleneck for data center expansion.
The Europe data center power market is also challenged by a shortage of skilled professionals capable of designing, operating, and maintaining advanced power systems. According to the European Commission, the digital skills gap in the EU affects over 70% of businesses, with the data center sector being particularly impacted. The complexity of modern power management technologies, such as AI-driven energy optimization and renewable energy integration, demands specialized expertise. This skills shortage can delay project timelines, increase operational costs, and hinder innovation. Addressing this gap requires significant investment in training and education programs, as well as collaboration between industry stakeholders and educational institutions to build a sustainable talent pipeline.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2024 to 2033 |
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Base Year |
2024 |
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Forecast Period |
2025 to 2033 |
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CAGR |
7.81% |
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Segments Covered |
By Component, Solutions, Services, End-use, and Country |
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Various Analyses Covered |
Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Countries Covered |
UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, Czech Republic, and Rest of Europe |
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Market Leaders Profiled |
ABB, Black Box, CyrusOne, Eaton, Equinix Inc., GDS Holdings, Generac Power Systems, Inc., General Electric Company, Huawei Technologies Co., Ltd., Legrand, N1 Critical Technologies, NTT Global Data Centers, Raman Power Technologies, Rittal GmbH & Co. KG, Schneider Electric, and Vertiv Group Corp are some of the key players in the Europe data center power market. |
The solutions segment accounted for 64.4% of the European market share in 2024. The domination of the solutions segment is majorly by the growing need for advanced power infrastructure, including UPS systems, PDUs, and energy storage solutions, to ensure uninterrupted operations and energy efficiency. The increasing adoption of hyperscale data centers, which require robust and scalable power solutions, is a key driver. For instance, the International Energy Agency highlights that energy-efficient solutions can reduce data center power consumption by up to 30%, making them indispensable for meeting sustainability and regulatory requirements.
The services segment is growing rapidly and is estimated to register the fastest CAGR of 9.4% over the forecast period. The rising complexity of power management systems and the need for specialized expertise in installation, maintenance, and optimization are propelling the rapid growth of the services segment in the European market. The increasing focus on sustainability and compliance with EU energy efficiency directives has also boosted demand for consulting and energy audit services. According to Eurostat, over 70% of businesses in the EU face challenges in implementing advanced energy solutions, underscoring the importance of professional services in driving market growth.
The UPS segment led the market by occupying 40.5% of the European market in 2024. UPS systems are critical for ensuring uninterrupted power supply during outages, which is essential for maintaining data center operations and preventing costly downtime. The increasing reliance on cloud services and hyperscale data centers has driven demand for reliable and energy-efficient UPS solutions. The International Energy Agency notes that modern UPS systems can improve energy efficiency by up to 10%, making them indispensable for meeting both operational and sustainability goals in the region.
The busway segment is anticipated to exhibit a CAGR of 12.4% over the forecast period owing to the increasing need for flexible and scalable power distribution solutions in large-scale data centers. Busway systems reduce installation time by up to 30% compared to traditional cabling, according to the European Commission, making them ideal for rapidly expanding facilities. Their modular design and ability to support high power loads are key factors in their increasing adoption, particularly in hyperscale and colocation data centers. The European Commission also highlights that busway systems align with sustainability goals by minimizing energy losses and supporting efficient power management.
The support and maintenance segment captured 45.8% of the European market share in 2024. The growing need for ongoing maintenance to ensure the reliability and efficiency of power systems is significantly contributing to the growth of the support and maintenance segment in the European market. According to the International Energy Agency, regular maintenance can reduce energy losses by up to 15%, making these services indispensable for minimizing operational costs and downtime. As data centers increasingly adopt complex power management technologies, the demand for skilled maintenance services continues to grow, ensuring uninterrupted operations and compliance with energy efficiency standards.
The design and consulting segment is the on the rise and is projected to post a CAGR of 11.8% over the forecast period. The growing complexity of data center power systems and the need for compliance with stringent energy efficiency regulations are driving the growth of the design and consulting segment in the European market. The European Commission notes that consulting services are essential for integrating renewable energy solutions and optimizing power infrastructure, making them a key enabler of sustainability and operational efficiency. With the EU’s Green Deal pushing for climate-neutral data centers by 2030, the demand for expert design and consulting services is expected to rise significantly.
The IT and telecommunications segment accounted for the leading share of 30.1% of the European market share in 2024. The domination of the IT and communications segment is primarily drive by the extensive need to process and analyze vast volumes of data generated from network operations, customer interactions, and service usage. Efficient data management enhances network optimization, customer service, and innovation. For example, telecom companies leveraging big data analytics have achieved a 20% reduction in network downtime and operational costs. According to the International Telecommunication Union (ITU), the number of global internet users reached 4.9 billion in 2021, illustrating the vast data volume handled by this sector.
The healthcare segment is estimated to witness the fastest CAGR of 19.4% over the forecast period owing to the digitization of health records, the rise of telemedicine, and the increasing need for predictive analytics in patient care. Big data analytics improves personalized treatment plans, early disease detection, and efficient healthcare resource management. For instance, predictive analytics can enhance patient outcomes by 30% through early diagnosis. The World Health Organization (WHO) reports that over 50% of healthcare facilities worldwide have adopted electronic health records, highlighting the sector’s shift towards data-driven decision-making.
Germany accounted for 25.3% of European market share in 2024. The growth of the German market is majorly driven by the advanced digital infrastructure of Germany, central geographic location, and strong focus on renewable energy integration. The country’s commitment to energy efficiency has made it a hub for data centers aiming to lower operational costs. Germany also has one of the highest data center energy consumption rates in Europe, reflecting its market dominance, as highlighted by Mordor Intelligence. The presence of key players and strategic government policies supporting green energy have further strengthened its leadership in the sector.
The United Kingdom is a major player in the European data center power sector. The high concentration of global tech companies in the UK, advanced cloud infrastructure, and strong regulatory framework for energy efficiency are driving the UK data center power market growth. The UK has been at the forefront of sustainable data center solutions, with many companies adopting renewable energy sources to meet carbon neutrality goals. The demand for cloud computing and edge data centers has increased significantly, making the UK one of the most important markets for data center power solutions.
France has emerged as a fast-growing market for data center power in Europe. The growth of the French data center power market is majorly credited to the major investments in digital infrastructure, data localization policies, and the adoption of renewable energy. The country is focusing on low-carbon power sources, making it an attractive destination for data center expansion. With several large cloud service providers expanding their presence, the demand for reliable power infrastructure has increased. Grand View Research notes that France is one of the key European markets benefiting from government-backed green energy initiatives and increased internet traffic growth.
ABB, Black Box, CyrusOne, Eaton, Equinix Inc., GDS Holdings, Generac Power Systems, Inc., General Electric Company, Huawei Technologies Co., Ltd., Legrand, N1 Critical Technologies, NTT Global Data Centers, Raman Power Technologies, Rittal GmbH & Co. KG, Schneider Electric, and Vertiv Group Corp are some of the key players in the Europe data center power market.
This research report on the Europe data center power market is segmented and sub-segmented into the following categories.
By Component
By Solutions
By Services
By End-use
By Country
Frequently Asked Questions
The growth is driven by increasing demand for cloud computing, AI workloads, and the expansion of hyperscale data centers, requiring higher power capacities.
AI and machine learning applications are increasing power demand, leading to the need for high-density racks and liquid cooling solutions to manage heat generation.
Trends include the adoption of battery energy storage systems (BESS), microgrids, hydrogen fuel cells, and direct renewable energy integration for sustainability.
EU regulations like the Energy Efficiency Directive and the Climate Neutral Data Center Pact push for reduced energy consumption and carbon neutrality targets.
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