Central & Eastern Europe Data Center Construction Market Outlook & Forecasts 2024-2029: Several Key Players Enter the Billion-Dollar Market to Explore the Region and Enjoy the Opportunities - ResearchAndMarkets.com

The "Central & Eastern Europe Data Center Construction Market - Industry Outlook & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.

The Central and Eastern Europe data center construction market by investment is expected to reach a value of $1.334 billion by 2029 from $652 million in 2023, growing at a CAGR of 12.7%

The Central and Eastern Europe data center construction market provides several opportunities to operators. Several players enter the market to explore the region and enjoy the opportunities.

The growth in data center activities across the Central and Eastern Europe data center construction market will be a major source of revenue for construction contractors. Some prominent construction contractors in the Central & Eastern Europe data center construction market include AECOM, Arup, DataDome, Deerns, Flour Corporation, ISG, Mercury, Turner & Townsend, Winthrop Engineering and Contracting, and others.

Digitalization across businesses will contribute to a surge in data center investments by colocation, cloud, internet, and telecommunication providers. Telecom companies such as Orange, T-Mobile, A1 Telekom, O2 (Telefonica), Vodafone, and others are responsible for deploying and introducing 5G services in the region.

Data center operators' trend of procuring renewable energy to power their facilities will likely continue during the forecast period. Several operators are signing power purchase agreements with renewable energy companies. For instance, in November 2023, Google signed a Power Purchase Agreement (PPA) to procure renewable energy in Poland to generate 50MW of electricity from wind farms.

The demand for data storage and hosting services will likely increase in the region, which is why the Central & Eastern Europe data center construction market will likely witness new players' entry. Supply chain disruptions, increasing inflation rates, shortage of skilled workforce, and political disturbances in Russia are likely to have a negative impact on the market.

Vendors such as Schneider Electric, Rittal, Hewlett Packard Enterprise, and Delta Electronics provide infrastructure based on OCP design. This will aid in market revenue growth for these vendors, as many organizations prefer solutions such as 48V DC UPS systems. The major colocation operators active in the Central and Eastern Europe data center construction market include Rostelecom, IXcellerate, 3data, Equinix, Digital Realty, NTT Global Data Centers, 3S Group, and others.

SEGMENTATION INSIGHTS

• Incorporating modular power infrastructure will likely provide higher Operational Expenditure (OPEX) savings for data centers over time as they are efficient, require lower maintenance, and reduce space.
• The importance of monitoring is growing with the adoption of intelligent real-time monitoring software with automation and Artificial Intelligence (AI) features that can predict maintenance requirements, component failures, and automatic switchovers for uninterrupted operations.
• In terms of cooling systems, free cooling techniques have grown significantly in the Central and Eastern Europe data center construction market over the last few years across regions with favorable climatic conditions that can use evaporative/adiabatic coolers for data center cooling purposes.
• Innovative designs such as district heating are expected to grow among data centers developed in colder climatic conditions. For instance, Floridsdorf Hospital in Vienna, Austria, received waste heat from Digital Realty's data center facility in Vienna, Austria.
• AI techniques regarding fire safety systems have grown significantly globally over the last few years. It is used in fire detection systems and control panels of fire safety systems in data centers. It helps to control fire at an early stage.
• Innovative technologies, such as HYGOOD Acoustic Nozzle and iFLOW Technology, are used in data center fire safety systems.
• Apart from construction, installation, and commissioning services, data centers also invest in improving physical security, monitoring, and management of facilities through DCIM in real time.

GEOGRAPHICAL ANALYSIS

Russia

• In 2023, the Russian data center construction market witnessed an investment of around USD 223 million, which was around a growth of 17% from 2022.
• Around 335 MW of data center capacity will be added to the Russian market during 2023-2029. Some of Russia's major data center providers include Russia's State Nuclear Energy Corporation (Rosatom), OBIT, Wildberries, Key Point, 3Data, and others.

Poland

• In 2023, the Poland data center construction market witnessed an investment of around USD 187 million, around a 1.08% increase in investment compared to 2022. Major Data center investors in Poland include Atman Data Centre, Vantage Data Centers, and Data4.
• Poland's data center market is among the emerging markets and has recently witnessed growth. The market has witnessed several new entrants, such as Data4 and Vantage Data Centers, that are building their presence in the market.
• One of the major factors driving the Poland market is increasing land prices and unavailability of land to scale up in prime locations in Western European countries such as the UK and Germany, leading to investors shifting their focus to markets such as Poland, that offer ample availability of land and power with options to scale up stably.

Austria

• Austria holds a significant position in the Central and Eastern Europe data center construction market and witnessed an increase in investment of 18% as compared to 2022. Major Data center investors in Poland include Atman Data Centre, Vantage Data Centers, and Data4.
• The market is witnessing the entry of several global cloud companies investing in the market. For instance, Microsoft and Google planned to open a dedicated cloud region nationwide. Amazon Web Services has planned to open an edge location in the country.
• The investment by all these major operators will allow other global colocation operators, such as Equinix, Vantage Data Centers, and others, to enter the market and explore the benefits and opportunities offered by the country.

Other Central & Eastern European Countries

• Other countries include Czechia, Hungary, Bulgaria, Croatia, Estonia, Slovakia, and others. These countries witnessed one to two investments, and the trend is expected to remain the same for the next two to three years.
• The demand from Russia will likely shift to these countries due to the political instability between Russia and Ukraine. These countries have ample land and the presence of global operators such as Digital Realty in Croatia and Equinix in Bulgaria.

KEY QUESTIONS ANSWERED

• How many MW of power capacity is expected to reach the Central and Eastern Europe data center construction market by 2029?
• How big is the Central and Eastern Europe data center construction market?
• What are the key trends in the Central & Eastern Europe data center construction market?
• What is the growth rate of the Central and Eastern Europe data center construction market?
• What is the estimated market size in terms of area in the Central and Eastern Europe data center construction market by 2029?

Key Attributes:

MARKET DYNAMICS

Market Opportunities & Trends

• Sustainability Initiatives Attract Data Center & Cloud Operators
• Growth in 5G Connectivity & Deployment of Edge Data Centers
• Adoption of AI-based Infrastructure

Market Growth Enablers

• Adoption of Cloud-based Services
• IoT & Big Data Drive Demand for Data Centers
• Increase in Data Center Investments

Market Restraints

• Supply Chain Disruptions Hamper Market Growth
• Site Selection Hindrances in Data Center Development
• Skilled Workforce Challenges
• Security Challenges Impact Data Center Growth

VENDOR LANDSCAPE

Major Vendors

Prominent Support Infrastructure Providers

• 3M
• ABB
• Aermec
• Airedale
• Aksa Power Generation
• Alfa Laval
• Carrier
• Caterpillar
• Condair
• Cummins
• Daikin Applied
• Delta Electronics
• Eaton
• HITEC Power Protection
• Johnson Controls
• KyotoCooling
• Legrand
• Mitsubishi Electric
• Perkins Engines
• Piller Power Systems
• Rittal
• Rolls-Royce
• Schneider Electric
• Siemens
• STULZ
• Trane (Ingersoll Rand)
• Vertiv

Prominent Construction Contractors

• AECOM
• Altron
• AODC
• Arup
• Aurora Group
• DataDome
• Deerns
• DIPL-Ing. H. C. Hollige
• Fluor Corporation
• Free Technologies Engineering
• GreenMDC
• Haka Moscow
• ICT Facilities
• IMOS
• ISG
• KKCG Group
• Mace
• Mercury
• PORR Group
• STRABAG
• TECHKO
• Tetra Tech
• Turner & Townsend
• Warbud
• Winthrop Engineering and Contracting
• ZAUNERGROUP

Prominent Data Center Investors

• 3data
• 3S Group
• Amazon Web Services
• Artnet
• Atman
• Beyond.pl
• ClusterPower
• Data4
• Digital Realty
• Equinix
• Google
• IXcellerate
• Magenta Telekom
• Microsoft
• Neterra
• Netia
• NTT DATA
• Orange Business Services
• Rostelecom Data Centers
• Stadtwerke Feldkirch
• T-Mobile
• Vantage Data Centers
• VK Cloud Solutions
• Yandex

New Entrants

• AtlasEdge

SEGMENTATION ANALYSIS

Support Infrastructure

• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• PDUs
• Other Electrical Infrastructure

Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers, & Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Cooling Techniques

• Air-based Cooling
• Liquid-based Cooling

General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Physical Security
• Fire Detection & Suppression
• DCIM/BMS

Tier Standards

• Tier I & II
• Tier III
• Tier IV

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