Market Size of switzerland data center Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 534.8 MW |
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Market Volume (2029) | 676.2 MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 4.80 % |
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Fastest Growing by Tier Type | Tier 4 |
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Market Concentration | Low |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Switzerland Data Center Market Analysis
The Switzerland Data Center Market size is estimated at 534.8 MW in 2024, and is expected to reach 676.2 MW by 2029, growing at a CAGR of 4.80%. Further, the market is expected to generate colocation revenue of USD 1,701.2 Million in 2024 and is projected to reach USD 2,361.1 Million by 2029, growing at a CAGR of 6.77% during the forecast period (2024-2029).
USD 1,701.22 Million
Market Size in 2024
USD 2,361.03 Million
Market Size in 2029
9.1%
CAGR (2017-2023)
6.77%
CAGR (2024-2029)
IT Load Capacity
534.8 MW
Value, IT Load Capacity, 2024
The growing average data volume due to rising OTT subscription numbers for smartphones and mobile gaming is further driving the demand for data processing and storage facilities for the live streaming of games and video content.
Total Raised Floor Space
Sq. Ft. 2.05 M
Volume, Raised Floor Space, 2024
The total raised floor area of the country has been driven by growing cloud use across companies because of their increasing integration of emerging technologies like artificial intelligence, big data, and blockchain.
Installed Racks
102,848
Volume, Installed Racks, 2024
Zurich is expected to house the maximum number of racks by 2029. Interxion (Digital Realty Trust Inc.) focuses on establishing a new facility, ZUR3, with an IT load capacity of 17.6 MW in two phases.
# of DC Operators & DC Facilities
41 and 81
Volume, DC Facilities, 2024
Zurich holds the major share in the country. Majorly, factors that contribute to the growth of the data center in the country include cloud adoption, an increase in broadband connectivity, and smartphone penetration.
Leading Market Player
20.8%
Market Share, STACK Infrastructure Inc., Inc.
STACK Infrastructure Inc. was the leading player in the Swiss market, with five facilities and 102 MW in operation. It is expected to roll out one DC facility with a capacity of more than 1 MW during the forecast period.
Tier 3 data center accounted for majority share in terms of volume in 2023, and is expected to dominate through out the forecasted period
- The Tier 3 segment of the market had the largest market share of 81.5%, with an IT load capacity of 371 MW in 2022. It is further projected to exhibit a CAGR of 1.9%, surpassing 435.49 MW by 2029. On the other hand, tier 4 data centers are expected to gain traction with a projected CAGR of 15.49% to reach a capacity of 226 MW by 2029.
- Tier 1&2 segments already have an adequate supply of retail colocation and large-scale builds to cater to the increasing hyperscale cloud requirements, which are driving the demand as the need for lower latency and more efficiency is growing.
- Facilities in Tier 1 and Tier 2 data centers gradually lose their demand and display a decrease in growth in the upcoming years. Tier 1&2 facilities are expected to hold a market share of nearly 1.6% by 2029 with minimal growth. This is a result of the prolonged and inconsistent outages. Most users eventually switch to Tier 3 and Tier 4 facilities, holding 62.4% and 36% of market shares, respectively, owing to the increased demand for storing, processing, and analyzing data.
- The fintech sector of the economy is expanding. In 2018, SIX, which is the main infrastructure provider for the Swiss financial market, plans cloud for banking in Switzerland.
- Tier 4 data centers are expected to expand significantly in the years to come due to the fact that more businesses are providing cloud-based services, which caused more businesses to construct facilities to provide colocation space with the best technology. For instance, cloud expenditure in Switzerland was already CHF 4.93 billion in 2021, and only 5% of companies adopted cloud services by 2022.
Understand The Key Trends Shaping This Market
Switzerland Data Center Industry Segmentation
Zurich are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.
- The Tier 3 segment of the market had the largest market share of 81.5%, with an IT load capacity of 371 MW in 2022. It is further projected to exhibit a CAGR of 1.9%, surpassing 435.49 MW by 2029. On the other hand, tier 4 data centers are expected to gain traction with a projected CAGR of 15.49% to reach a capacity of 226 MW by 2029.
- Tier 1&2 segments already have an adequate supply of retail colocation and large-scale builds to cater to the increasing hyperscale cloud requirements, which are driving the demand as the need for lower latency and more efficiency is growing.
- Facilities in Tier 1 and Tier 2 data centers gradually lose their demand and display a decrease in growth in the upcoming years. Tier 1&2 facilities are expected to hold a market share of nearly 1.6% by 2029 with minimal growth. This is a result of the prolonged and inconsistent outages. Most users eventually switch to Tier 3 and Tier 4 facilities, holding 62.4% and 36% of market shares, respectively, owing to the increased demand for storing, processing, and analyzing data.
- The fintech sector of the economy is expanding. In 2018, SIX, which is the main infrastructure provider for the Swiss financial market, plans cloud for banking in Switzerland.
- Tier 4 data centers are expected to expand significantly in the years to come due to the fact that more businesses are providing cloud-based services, which caused more businesses to construct facilities to provide colocation space with the best technology. For instance, cloud expenditure in Switzerland was already CHF 4.93 billion in 2021, and only 5% of companies adopted cloud services by 2022.
| Hotspot | |
| Zurich | |
| Rest of Switzerland |
| Data Center Size | |
| Large | |
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| Medium | |
| Mega | |
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| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| Absorption | |||||||||||||||||
| Non-Utilized | |||||||||||||||||
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Switzerland Data Center Market Size Summary
The Switzerland data center market is experiencing a steady expansion, driven by the increasing demand for data storage and processing capabilities. This growth is largely attributed to the rise in digitalization, smartphone usage, and the proliferation of cloud-based services. The market is characterized by a significant shift towards Tier 3 and Tier 4 data centers, which are gaining prominence due to their ability to meet the growing needs for lower latency and enhanced efficiency. The fintech sector's expansion and the increasing adoption of cloud services are further propelling the demand for advanced data center facilities. As businesses continue to invest in colocation spaces with cutting-edge technology, the market is poised for continued growth, with Tier 4 data centers expected to see substantial expansion.
The market landscape in Switzerland is fragmented, with major players like Equinix Inc., EXA Infrastructure, Green Datacenter, Interxion, and NTT Ltd. holding significant shares. Recent developments include the opening of new data center facilities and expansions of existing ones, such as those by Green and Equinix in Zurich. The rising data traffic, driven by factors like mobile gaming and OTT subscription services, is necessitating increased storage capacity, thereby boosting the demand for data centers. Additionally, the growing number of smartphone users and the high penetration of the internet are contributing to the surge in data consumption, further supporting the market's growth trajectory.
Switzerland Data Center Market Size - Table of Contents
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1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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1.1 Hotspot
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1.1.1 Zurich
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1.1.2 Rest of Switzerland
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1.2 Data Center Size
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1.2.1 Large
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1.2.2 Massive
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1.2.3 Medium
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1.2.4 Mega
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1.2.5 Small
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1.3 Tier Type
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1.3.1 Tier 1 and 2
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1.3.2 Tier 3
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1.3.3 Tier 4
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1.4 Absorption
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1.4.1 Non-Utilized
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1.4.2 Utilized
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1.4.2.1 By Colocation Type
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1.4.2.1.1 Hyperscale
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1.4.2.1.2 Retail
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1.4.2.1.3 Wholesale
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1.4.2.2 By End User
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1.4.2.2.1 BFSI
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1.4.2.2.2 Cloud
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1.4.2.2.3 E-Commerce
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1.4.2.2.4 Government
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1.4.2.2.5 Manufacturing
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1.4.2.2.6 Media & Entertainment
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1.4.2.2.7 Telecom
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1.4.2.2.8 Other End User
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Switzerland Data Center Market Size FAQs
What is the current Switzerland Data Center Market size?
The Switzerland Data Center Market is projected to register a CAGR of 4.80% during the forecast period (2024-2029).
Who are the key players in Switzerland Data Center Market?
Equinix Inc., EXA Infrastructure, Green Datacenter, Interxion (Digital Reality Trust Inc.) and NTT Ltd are the major companies operating in the Switzerland Data Center Market.
