Austria Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Austria Data Center Market Analysis

The Austria Data Center Market size is estimated at 164.1 MW in 2025, and is expected to reach 405.6 MW by 2030, growing at a CAGR of 19.84%. Further, the market is expected to generate colocation revenue of USD 222.8 Million in 2025 and is projected to reach USD 696.5 Million by 2030, growing at a CAGR of 25.60% during the forecast period (2025-2030).

The Austrian data center market is experiencing a significant transformation driven by increasing enterprise demands for high-tier facilities and robust data center infrastructure. Tier 4 data centers dominated the market landscape in 2022, accounting for 50% of the total market share, highlighting the growing preference for facilities offering maximum reliability and uptime. This shift reflects the broader industry trend toward premium infrastructure solutions that ensure business continuity and operational excellence. The market has witnessed substantial investments in data center infrastructure upgrades, with operators focusing on implementing redundant systems and advanced cooling solutions to meet the stringent requirements of enterprise clients.

Infrastructure development across key metropolitan areas has emerged as a crucial factor shaping the market landscape. Vienna has established itself as the primary data center hub, followed by strategic expansions in the Salzburg and Graz regions. These locations are being developed as alternative data center corridors to support the growing demand for distributed computing resources. The strategic positioning of these facilities demonstrates the industry's commitment to creating a robust national data center network that can support diverse business requirements while ensuring optimal connectivity and resource utilization.

The market is witnessing a notable surge in hyperscale data center developments, with major international technology companies making significant investments. In October 2022, Google announced plans to establish cloud data center services with a dedicated data center in Austria, while Microsoft committed EUR 1 billion for cloud data center infrastructure development in June 2022. These investments are transforming the market dynamics, creating new opportunities for local enterprises while also attracting international businesses looking to establish their presence in the region. The increasing presence of global technology giants is elevating Austria's position as a strategic data center location in Central Europe.

The e-commerce sector has emerged as a significant driver of data center demand, with online retail becoming increasingly prevalent in Austrian consumer behavior. The sector has witnessed substantial growth, with 14% of all retail purchases being conducted online and Austrian shoppers spending an average of USD 2,000 annually on e-commerce platforms. This digital transformation of retail operations has created increased demand for robust data center storage and processing capabilities, prompting data center operators to expand their facilities and enhance their service offerings. Major players in the market are responding to this demand by developing specialized solutions that cater to the unique requirements of e-commerce operations, including high-performance computing capabilities and advanced security features.

Austria Data Center Market Trends

Rise in the urban population and 5G access is boosting the market demand

• The total number of smartphone users in the country was 7.8 million in 2022, and it is expected to witness a CAGR of 1.2% during the forecast period to reach 8.4 million users by 2029.
• Smartphone users are rising due to the growing demand for mobile internet services and applications and the real-time need for information exchange. Consumer behavior has been impacted by the quick adoption of the Internet and smartphone technology in a variety of businesses. For instance, from 2016 to 2021, the purchasing power per person in Austria increased from 53,346 thousand to 54,121 thousand. As a result, more people were able to purchase smartphones, increasing the number of smartphone users.
• The rise in the urban population increased consumer awareness regarding the usage of mobile devices. This, combined with the surging integration of AR technology, cashless payments, and expanding over-the-top (OTT) platform subscriptions, is expected to drive smartphone users in the future. Austria's urban population for 2021 was 5.2 million, a 0.86% increase from 2020. The urban population was 58.3% in 2018 and rose to 59.3% in 2022. Users in Austria see a better 5G experience in urban areas, with an average download speed of 162.3 Mbps. The abovementioned instances suggest the rising use of smartphones in Austria, which results in a constant increase in data. This necessitates a growing amount of storage space to accommodate the uncontrollable flow of data and the need for real-time processing and analysis. Data centers must manage the sheer amount of data. Thus, the requirement for extra racks in data centers in Austria may increase as the number of smartphone users rises.

Surge in mobile phone and adoption of digital banking, social media usage increases the demand for the market

• In 2022, the nation's average data speed was expected to be 63.05 Mbps. 3 (Drei) Austria began rolling out its 4G LTE network in 2014, and 4G availability reached 74.3% with a 27.84 Mbps download speed by 2017. Furthermore, by the end of 2020, 5G was launched in all provincial capitals. Since the launch of both of the services, 4G reached 89.6 Mbps in 2022, and 5G reached 162.4 Mbps by 2022.
• 3(Drei), A1 Telekom, and Magenta are the major players expected to shut down 3G by 2024. 2G is expected to outlive 3G and is expected to be shut down by 2030. The “5G strategy for Austria” document was approved in April 2018, and the service is expected to reach main traffic roads by the end of 2023, followed by nationwide coverage for two years.
• The increased average speed and the overall connection are paving the way for end-users, such as e-commerce, media and entertainment, and online banking. For instance, the banking industry is mostly driven by the digital transformation of organizations. The country's growing mobile phone and high-speed internet markets influenced the early adoption of digital banking in Austria and are expanding steadily with the introduction of mobile banking and apps. Digital payments make up approximately EUR 10,000 million per year, and mobile payments are estimated at around EUR 2,192 million per year.
• Additionally, the number of social media users in Austria was equivalent to 79.9% of the total population in January 2021, and it rose to 81.4% by the start of 2022. Daily social media usage totaled 90 minutes per day in Austria. Thus, the rise in mobile data speeds is expected to lead to more service-oriented applications in end-user industries, which are expected to drive the growth of data processing facilities in the coming years.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Data Center Size

Massive Segment in Austria Data Center Market

The massive data center segment dominates the Austrian data center market, commanding approximately 38% market share in 2024. This segment's prominence is particularly evident in Vienna, where all massive data center facilities are situated. Major players like Interxion (Digital Realty Trust Inc.) lead this segment with significant capacity installations. The segment's dominance is driven by the growing demand for cloud services and e-commerce platforms, which require substantial data center infrastructure. Vienna's Digital Agenda 2025 further strengthens this segment's position by establishing strategic principles and action steps for digitalization across various fields, including security, service, knowledge, infrastructure, and business operations.

Large Segment in Austria Data Center Market

The large data center segment is experiencing remarkable growth in the Austrian market, with an expected growth rate of approximately 14% during 2024-2029. This robust growth is primarily driven by the construction of new large-sized facilities in the Vienna region. The segment's expansion is supported by significant infrastructure developments, including the Broadband Internet Access project with a EUR 893.1 million investment aimed at increasing broadband accessibility across Austrian districts. Key players in this segment include Kontron AG, KAPPER NETWORK-COMMUNICATIONS GmbH Austria, and Huemer Group, who are actively expanding their facilities to meet the growing demand for colocation data center services.

Remaining Segments in Data Center Size

The medium and small data center segments play complementary roles in the Austrian market, catering to specific market niches and regional requirements. The medium segment serves as a crucial bridge between large and small facilities, particularly beneficial for mid-sized enterprises and regional businesses. Small data centers, while having a limited market presence, continue to serve specific local needs and specialized applications. The mega data center segment, though currently not active in Austria, shows potential for future development as the market matures and digital transformation initiatives continue to expand across the country.

Segment Analysis: Tier Type

Tier 4 Segment in Austria Data Center Market

The Tier 4 segment dominates the Austrian data center market, commanding approximately 58% market share in 2024, with an IT load capacity of 80.62 MW. This segment's prominence is driven by the increasing demand for fault-tolerant facilities that ensure minimal downtime while maximizing operational efficiency. Major cloud service providers and enterprises prefer Tier 4 data centers due to their superior reliability and redundancy features. The segment is experiencing robust growth with a projected CAGR of around 13% from 2024 to 2029, driven by significant investments from key players like Interxion (Digital Realty Trust Inc.) in Vienna. The construction of new Tier 4 facilities, with a cumulative capacity of over 168 MW, is planned across Vienna and other regions of Austria, further solidifying this segment's market leadership.

Remaining Segments in Tier Type

The Tier 3 segment represents a significant portion of the market, offering a balance between reliability and cost-effectiveness for businesses that require high availability but may not need the extreme redundancy of Tier 4 facilities. These data centers are particularly attractive to medium and large enterprises seeking robust infrastructure without the premium costs associated with Tier 4 facilities. Meanwhile, the Tier 1 & 2 segment serves basic colocation needs but is experiencing minimal growth as businesses increasingly prioritize higher reliability and uptime guarantees. The shift away from lower-tier facilities reflects the growing sophistication of Austria's digital infrastructure and the increasing demands of modern business operations.

Segment Analysis: Absorption

Utilized Segment in Austrian Data Center Market

The utilized segment dominates the Austrian data center market, accounting for approximately 81% of the total IT load capacity in 2024. This significant market share is driven by the growing adoption of cloud services, e-commerce platforms, and digital transformation initiatives across various industries. The segment's dominance is further strengthened by increasing investments from major technology companies and the government's push towards digitalization. Austria's position as a gateway to Eastern Europe and its relatively lower electricity costs compared to neighboring countries make it an attractive destination for enterprise data center operations. The growth in this segment is particularly notable in Vienna, which serves as the primary hotspot for data center facilities, followed by other key locations such as Salzburg and Graz.

Non-Utilized Segment in Austrian Data Center Market

The non-utilized segment in the Austrian data center market is expected to grow at a steady rate of approximately 6% during the forecast period 2024-2029. This growth is primarily attributed to the ongoing expansion of data center facilities and the construction of new facilities across various regions in Austria. The segment's development is supported by strategic initiatives such as the government's broadband internet access project, which represents a significant investment of EUR 893.1 million to increase broadband accessibility across Austrian districts. The expansion plans of major data center operators and the increasing demand for data storage and processing capabilities are creating additional capacity in the market, contributing to the non-utilized segment's growth trajectory.

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