What is next for the European data centre market?
The European data centre industry is in a golden decade of growth. By 2030, capacity is expected to more than double, creating a range of opportunities.
Key opportunities:
Euro-wide partnerships
Data centre owners think “Euro-wide” for their value chains, which provides a good opportunity for local players to expand geographically with their clients.
There are some challenges to serving new countries with local regulations, supply chains etc., but the opportunities to piggyback on an international client who wants region-wide consistency means the investment is worth it.
Expansion into adjacent areas
Asset owners prefer trusted relationships with fewer partners, meaning embedded players are well placed to extend their offerings to adjacent segments.
This can be horizontal expansion into similar areas (e.g. from substation to temporary power) or it can be across the lifecycle (e.g. from install to ongoing maintenance). Organic and M&A strategies can suit.
Diversification into other markets
While a strong strategy is to focus on a core market in high growth, players could look to diversify into other areas of complex, critical infrastructure.
Examples include semi-conductor plants, power plants and high-voltage industries where complex assets in regulated industries require high-skilled supply chains that can manage large and sophisticated projects.
