Summary:
1. The EMEA data center colocation market is projected to grow significantly from 2025 to 2030, driven by hyperscale demand and digital transformation.
2. Industry investments and expansions are on the rise, with colocation providers expanding to meet the increasing demand for scalable infrastructure.
3. Government initiatives and regulatory support, as well as a focus on sustainability and renewable energy, are shaping the competitive landscape in the EMEA region.
Article:
The European Middle East and Africa (EMEA) data center colocation market is set for substantial growth, with projections indicating a rise from USD 29.751 billion in 2025 to USD 51.208 billion in 2030, representing a CAGR of 11.47%. This growth is fueled by the increasing reliance on colocation services by hyperscale data center users, such as cloud providers and tech giants. In recent years, major cloud providers like Microsoft and Google have leased significant capacity in urban centers across Europe, boosting the demand for scalable infrastructure. Moreover, the Middle East and Africa are undergoing rapid digital transformation, driven by the fourth industrial revolution, IoT, and smart city initiatives.
Colocation providers are actively expanding their operations to keep up with the rising demand in the market. For example, Data4 recently established a new data center in Hanau, Germany, on a former army barracks site, signaling robust investment in Western Europe. Similarly, in the Middle East, providers like Khazna Data Centers are scaling up, with new facilities planned to cater to hyperscale requirements. These expansions reflect a strategic focus on capturing market share in both developed and emerging EMEA markets, fueled by increased business investments and product innovation.
Government policies play a crucial role in fostering market growth through incentives and regulatory frameworks. For instance, France reduced tariffs on energy for data centers in 2023, encouraging further investment in the sector. Switzerland’s Federal Act on Data Protection (FADP), aligned with GDPR, has bolstered investor confidence by ensuring robust data privacy standards. In the Middle East, Saudi Arabia’s USD 18 billion plan to build a national network of hyperscale data centers is actively progressing, driving regional growth. These initiatives create a favorable environment for colocation providers, particularly in regions prioritizing digital infrastructure.
The UK is emerging as a prime location for colocation services, driven by advancements in ICT infrastructure. With the telecom sector’s growth and government-backed initiatives to enhance digital infrastructure, the UK is expected to sustain its momentum and become a key market through 2028. Meanwhile, the Middle East is witnessing accelerated market expansion, supported by strategic investments and the adoption of 5G services by telecom providers across the region. The focus on sustainability is also growing, with colocation providers investing in renewable energy solutions to power data centers, aligning with regional sustainability goals and enhancing market appeal.
In terms of the competitive landscape, key players like Equinix, Digital Realty, and Khazna Data Centers dominate through strategic expansions and acquisitions. New entrants like Agility and EDGNEX Data Centres by DAMAC are disrupting the market, focusing on hyperscale and sustainable facilities to meet evolving demands. Overall, the EMEA data center colocation market is poised for significant growth and transformation, driven by a combination of hyperscale demand, industry investments, government initiatives, and a focus on sustainability.
