Netherland Data Center Construction Market Size (2024 - 2029)

The Netherlands data center construction market is poised for significant expansion, driven by increasing demand from cloud computing and foreign cloud vendors, alongside stringent government data security regulations. The market's growth trajectory is supported by technological advancements aimed at reducing power consumption and enhancing efficiency. Despite the rapid development, the sector faces challenges such as supply chain bottlenecks, fluctuating commodity prices, and rising inflationary pressures. Data security concerns are also escalating due to the rise in cyber attacks and natural disasters, impacting the market landscape.

Market Size of Netherland Data Center Construction Industry

Netherland Data Center Construction Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 1.20 Billion
Market Size (2030) USD 6 Billion
CAGR (2024 - 2030) 4.75 %
Market Concentration Medium

Major Players

Netherland Data Center Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Netherland Data Center Construction Market Analysis

The Netherland Data Center Construction Market size is estimated at USD 1.20 billion in 2024, and is expected to reach USD 6 billion by 2030, growing at a CAGR of 4.75% during the forecast period (2024-2030).

  • The upcoming IT load capacity of the Dutch data center construction market is expected to reach more than 1490.2 MW by 2030. The country's construction of raised floor area is expected to increase by more than 6.7 million sq. ft by 2030.
  • The country's total number of racks to be installed is expected to be nearly 338,134 units by 2030. Amsterdam will likely house the maximum number of racks by 2030. There are close to 10 submarine cable systems connecting the Netherlands, and many are under construction. One such submarine cable, built in 2022, is BT North Sea, with landing points in Callantsoog, Netherlands.
  • The demand for the data center construction market in the country is being driven by factors such as a surge in cloud computing. The government regulations for data security and the increasing presence of foreign cloud vendors are contributing to this demand. According to Cloudscene, as of September 2023, there were 299 data centers in the Netherlands.
  • Furthermore, due to technological advancements, companies are now more focused on reducing power consumption to enhance efficiency, cut costs, and meet the rising demand for efficient facility systems. In August 2023, Microsoft was granted approval to construct a new data center in the Hollands Kroon region of the Netherlands. The facility is situated on 14.4 hectares within the Agriport Business Park. There are two separate buildings within the development, each capable of holding 36MW of power. These buildings, known as AMS13 and AMS1, are equipped with a total of five data halls.
  • The data center construction market in the country is experiencing rapid growth but is also facing challenges such as supply chain bottlenecks, longer lead times for crucial components, increased and fluctuating commodity prices, and escalating inflationary pressures. Moreover, data security has become a rising concern in the market studied due to the rise in cyber attacks and natural disasters.

Netherland Data Center Construction Industry Segmentation

A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services. Under data center construction, the capital expenditure incurred while building the existing data center facilities is tracked, and the future capex is estimated based on upcoming data center facilities.

The data center construction market in the Netherlands is segmented by tier type (tier 1 and 2, tier 3, and tier 4), by data center size (small, medium, large, massive, and mega), by infrastructure (cooling infrastructure [air-based cooling, liquid-based cooling, and evaporative cooling], power infrastructure [UPS systems, generators, and power distribution unit (PDU)], racks and cabinets, servers, networking equipment, physical security infrastructure, design and consulting services, and other infrastructure), and end user (IT & telecommunication, BFSI, government, healthcare, and other end users). The market sizes and forecasts are provided in values (USD) for all the above segments.

By Tier Type
Tier 1 and 2
Tier 3
Tier 4
By Data Center Size
Small
Medium
Large
Mega
Massive
By Infrastructure
Cooling Infrastructure
Air-based Cooling
Liquid-based Cooling
Evaporative Cooling
Power Infrastructure
UPS Systems
Generators
Power Distribution Unit (PDU)
Racks and Cabinets
Servers
Networking Equipment
Physical Security Infrastructure
Design and Consulting Services
Other Infrastructure
By End User
IT & Telecommunication
BFSI
Government
Healthcare
Other End User
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Netherland Data Center Construction Market Size Summary

The Netherlands data center construction market is poised for significant growth, driven by the increasing demand for cloud computing and the presence of foreign cloud vendors. The market is experiencing a surge in activity due to advancements in technology and the need for efficient facility systems. The construction of data centers is expanding, with Amsterdam emerging as a key hub due to its robust technological infrastructure and strategic location. The city's data centers benefit from premier internet exchanges and transatlantic fiber optic links, making it an attractive site for businesses seeking low-latency connections to the European market. The market is also witnessing investments from major companies, further fueling its expansion.

Despite the rapid growth, the market faces challenges such as supply chain bottlenecks, fluctuating commodity prices, and rising inflationary pressures. Data security concerns are also on the rise due to increased cyber attacks. The cloud segment is expected to dominate the market, with significant contributions from the BFSI and telecom sectors. Government policies and investments in emerging technologies like quantum computing and 5G are expected to bolster the market further. The Dutch data center construction market is semi-consolidated, with key players like AECOM, DPR Construction, and Schneider Electric driving innovation and development.

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Netherland Data Center Construction Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 5G Developments Fuelling Data Center Investments

      2. 1.2.2 Growing Cloud Servce adoption

      3. 1.2.3 Green Data Centers Rising Awareness of Carbon-neutrality Leading to Infrastructure Upgrades

    3. 1.3 Market Restraints

      1. 1.3.1 Security Challenges Impacting Growth of Data Centers

    4. 1.4 Value Chain/Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Tier Type

      1. 2.1.1 Tier 1 and 2

      2. 2.1.2 Tier 3

      3. 2.1.3 Tier 4

    2. 2.2 By Data Center Size

      1. 2.2.1 Small

      2. 2.2.2 Medium

      3. 2.2.3 Large

      4. 2.2.4 Mega

      5. 2.2.5 Massive

    3. 2.3 By Infrastructure

      1. 2.3.1 Cooling Infrastructure

        1. 2.3.1.1 Air-based Cooling

        2. 2.3.1.2 Liquid-based Cooling

        3. 2.3.1.3 Evaporative Cooling

      2. 2.3.2 Power Infrastructure

        1. 2.3.2.1 UPS Systems

        2. 2.3.2.2 Generators

        3. 2.3.2.3 Power Distribution Unit (PDU)

      3. 2.3.3 Racks and Cabinets

      4. 2.3.4 Servers

      5. 2.3.5 Networking Equipment

      6. 2.3.6 Physical Security Infrastructure

      7. 2.3.7 Design and Consulting Services

      8. 2.3.8 Other Infrastructure

    4. 2.4 By End User

      1. 2.4.1 IT & Telecommunication

      2. 2.4.2 BFSI

      3. 2.4.3 Government

      4. 2.4.4 Healthcare

      5. 2.4.5 Other End User

Netherland Data Center Construction Market Size FAQs

The Netherland Data Center Construction Market size is expected to reach USD 1.20 billion in 2024 and grow at a CAGR of 4.75% to reach USD 6 billion by 2030.

In 2024, the Netherland Data Center Construction Market size is expected to reach USD 1.20 billion.

Netherland Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024-2030)