Market Trends of Belgium Data Center Construction Industry
IT and Telecom to have significant market share
- The cloud end-user industry segment is expected to reach 24.83 MW in the current year. The segment is expected to register a CAGR of 2.19%, surpassing an IT load capacity of 28.27 MW in six years.
- It is expected to witness the highest growth during the forecast period. The cloud, BFSI, and government end-user industries are expected to hold the largest market shares over the forecast period, accounting for 18.2%, 14.9%, and 16.1%, respectively, in six years.
- The market shares of these end-user industry segments are expected to be 17.9%, 14.6%, and 15.8% in the current year. The Belgian government is aggressively attracting digital investment and has worked with Microsoft to digitalize the nation's public and private sectors through programs like Digital AmBEtion.
- Microsoft committed more than EUR 1 billion in Belgium to establish a new cloud area to assist service providers better and boost the nation's GDP. State-owned operator Proximus has built a strong DSL telecom infrastructure with a widespread co-axial cable infrastructure across the regions and towns, especially in Flanders, to support Belgium's ICT industry and increase internet connectivity.
- Around 78% of consumers in Belgium have broadband plans with speeds of at least 30 Mbps. Banking is Belgium's most popular online activity, with 73% of people conducting their financial operations online.
- This amounted to a 27% increase over the previous year. As end users consume more data for computation and storage, it increases the demand for additional racks and, in turn, expands the market for data centers nationwide.
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Brussels to be the major hotspot for data center construction in the country
- The total IT load capacity in the Brussels hotspot is expected to reach 175.32 MW in the current year and is expected to register a CAGR of 0.87%, surpassing 184.62 MW in six years. On the other hand, the Rest of Belgium is predicted to register a CAGR of 0.89% to reach a capacity of 78.69 MW in six years.
- The capital city of Belgium is Brussels. Due to its economic importance, it will continue to demonstrate its significance. The deployment of data centers has been heavily concentrated in Brussels, where companies like Kevlinx, Etix Everywhere, Atlas Edge, and Interxion have invested more than 50% of their total capital. Brussels is the most well-liked conference city in Europe, hosting more than 1,000 business conferences each year.
- One of the most significant financial centers in the world, according to rankings, 4,500 ICT businesses in Brussels employ 75,000 employees. Because of its accessibility by rail, road, and airport, the area is also known as Europe's geographic, economic, and cultural center.
- Because of this, Brussels has one of the highest levels of connectivity in all of Europe. Some of the businesses are growing their presence throughout Belgium. For instance, LCL Data Centers, one of the country's largest operators, is creating hyper-scale data centers to diversify its business into wholesale colocation services. Thus, the company has planned to expand its Wallonia One data center campus to around 60 MW over the next 4-5 years.
