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Data Center News > Blog > Colocation > Data centres are fundamental to European competitiveness, but challenges remain
Colocation

Data centres are fundamental to European competitiveness, but challenges remain

Last updated: March 6, 2025 3:34 pm
Published March 6, 2025
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Data centres are fundamental to European competitiveness, but challenges remain
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Knowledge centres are elementary throughout the aggressive worldwide panorama, serving as essential parts of Europe’s digital infrastructure, housing the IT tools crucial for storing and processing information, and enabling the digital providers that underpin European economies and society. Nonetheless, there are distinct challenges for the market as three quarters of information centre operators contemplate entry to energy as their largest problem within the subsequent three years.

These are findings from a brand new report from the European Knowledge Centre Affiliation (EUDCA) entitled “State of European Knowledge Centres 2025”.

The report goals to reinforce an understanding of the European information centre market’s fundamentals, alternatives, and challenges, whereas contributing worthwhile insights to foster the sustainable growth of the business in Europe.

“The digital economies of Europe couldn’t have been constructed with out the inspiration of digital infrastructure comprising a community of greater than 9,000 information centres. To stay aggressive globally and to help the persevering with wave of technological growth and digital transformation, the info centre business should guarantee continued give attention to effectivity and sustainability whereas driving innovation,” stated Michael Winterson, Secretary Normal, EUDCA.

Knowledge centres considerably contribute to Europe’s socio-economic panorama, finds the report. In 2023, colocation information centres alone accounted for €30 billion in GDP, with forecasts predicting €83.8 billion by 2030, alongside the creation of hundreds of direct and oblique jobs.

Power use and sustainability

To satisfy sustainability challenges, three quarters already make use of environmental or vitality administration methods, half use residual warmth coupling, and nearly half (47%) make use of IT tools recycling practices.

See also  Telkom Indonesia and Indosat Ooredoo Hutchison form strategic partnership

Sustainability is a tenet for information centres in Europe, and widespread help and adoption of voluntary measures such because the Local weather Impartial Knowledge Centre Pact (CNDCP) reveal not simply dedication however the will to transcend compliance.

Markets and development The market is increasing quickly, with demand outstripping provide and attracting billions of euros in investments. This development boosts GDP, creates jobs, and helps digital sovereignty. Main centres of exercise embrace Frankfurt, London, Amsterdam, Paris, and Dublin (FLAP-D), with intense exercise in rising hubs within the Nordics and Southern Europe.

The report finds the business faces challenges associated to energy availability, sustainability, and regulatory compliance as new reporting obligations got here just lately into impact. Nonetheless, these challenges additionally current alternatives for innovation in vitality effectivity, flexibility, and warmth reuse. The sector’s continued development will necessitate ongoing investments in sustainability to minimise environmental affect.

The European information centre market is poised for vital development, pushed by digitalisation, cloud adoption, and AI developments. Addressing key challenges similar to energy constraints, regulatory compliance, technical expertise shortages, and sustainability pressures will probably be essential to sustaining this development. Continued funding in inexperienced applied sciences, streamlined regulatory frameworks, and workforce growth will probably be important to make sure Europe’s competitiveness within the world digital financial system.

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TAGGED: centres, Challenges, competitiveness, data, European, fundamental, Remain
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