Central & Eastern Europe Data Center Construction Market - Industry Outlook & Forecast 2024-2029

Central & Eastern Europe Data Center Construction Market - Industry Outlook & Forecast 2024-2029

The Central and Eastern Europe data center construction market by investment is expected to grow at a CAGR of 12.67% from 2023 to 2029.

KEY TRENDS

• 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.

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.

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

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.
• Geography
• Russia
• Poland
• Austria
• Czechia
• Other Central & Eastern European Countries

VENDOR LANDSCAPE

• 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 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.
• 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.
• 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.

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

KEY QUESTIONS ANSWERED:

1. How many MW of power capacity is expected to reach the Central and Eastern Europe data center construction market by 2029?

2. How big is the Central and Eastern Europe data center construction market?

3. What are the key trends in the Central & Eastern Europe data center construction market?

4. What is the growth rate of the Central and Eastern Europe data center construction market?

5. What is the estimated market size in terms of area in the Central and Eastern Europe data center construction market by 2029?