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    Europe Data Center Outsourcing Infrastructure Utility Services Market

    ID: MRFR/ICT/60850-HCR
    200 Pages
    Aarti Dhapte
    September 2025

    Europe Data Center Outsourcing Infrastructure Utility Services Market Research Report By Service Type (Cloud Services, Managed Hosting Services, Colocation Services, Data Center Migration Services, Disaster Recovery Services), By Deployment Type (Public Cloud, Private Cloud, Hybrid Cloud), By End Use Industry (IT and Telecommunications, BFSI, Healthcare, Retail, Government), By Operational Model (Capex, Opex, Subscription) and By Regional (Germany, UK, France, Russia, Italy, Spain, Rest of Europe)- Forecast to 2035

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    Europe Data Center Outsourcing Infrastructure Utility Services Market Research Report- Forecast to 2035 Infographic
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    Europe Data Center Outsourcing Infrastructure Utility Services Market Summary

    The Europe Data Center Outsourcing Infrastructure Utility Services market is projected to grow significantly from 16.9 USD Billion in 2024 to 36.2 USD Billion by 2035.

    Key Market Trends & Highlights

    Europe Data Center Outsourcing Infrastructure Utility Services Key Trends and Highlights

    • The market is expected to exhibit a compound annual growth rate of 7.15 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 36.2 USD Billion, reflecting robust growth.
    • In 2024, the market is valued at 16.9 USD Billion, indicating a strong foundation for future expansion.
    • Growing adoption of cloud computing due to increasing demand for scalable solutions is a major market driver.

    Market Size & Forecast

    2024 Market Size 16.9 (USD Billion)
    2035 Market Size 36.2 (USD Billion)
    CAGR (2025-2035) 7.15%

    Major Players

    Orange Business Services, Hewlett-Packard Enterprise, NTT Data, Accenture, Atos, TSystems, Global Cloud Xchange, DXC Technology, Wipro, IBM, Capgemini, Kyndryl, Fujitsu

    Europe Data Center Outsourcing Infrastructure Utility Services Market Trends

    The Europe Data Center Outsourcing Infrastructure Utility Services Market is experiencing significant trends, driven largely by the increasing demand for efficient, sustainable energy solutions. European governments are promoting green initiatives, pushing companies to adopt energy-efficient practices in their data centers. This trend aligns with the European Union’s targets for reducing carbon emissions and enhancing energy efficiency. 

    The rise of remote work and online services has made it even more important to have a strong data center infrastructure. This has led to a boom in utility services that can handle more digital workloads. In this changing market, service providers have a lot of chances to meet demand. As people become more aware of the need for cybersecurity, they are becoming more interested in integrated security solutions that can be offered with data center outsourcing services.

    Moreover, as businesses expand into new digital territories, there is a significant prospect for localized data center services tailored to comply with regional regulations and customer needs. Recent trends also indicate a shift towards more hybrid solutions, where organizations blend private and public cloud services. This trend represents a critical opportunity for service providers to develop innovative models that accommodate diverse business requirements and promote operational efficiency across Europe’s data center landscape.

    Market Segment Insights

    Europe Data Center Outsourcing Infrastructure Utility Services Market Segment Insights

    Europe Data Center Outsourcing Infrastructure Utility Services Market Segment Insights

    Data Center Outsourcing Infrastructure Utility Services Market Service Type Insights

    Data Center Outsourcing Infrastructure Utility Services Market Service Type Insights

    The Europe Data Center Outsourcing Infrastructure Utility Services Market has been notably shaped by its diverse Service Type segment, which encompasses various essential categories that cater to the dynamic needs of businesses across the region. Cloud Services holds a significant portion of this market, driven by the increasing demand for flexible and scalable storage solutions, enabling businesses to adapt quickly to changing market conditions. Managed Hosting Services facilitate organizations in enhancing their operational efficiency by providing dedicated infrastructure and support, allowing companies to focus on their core competencies.

    Colocation Services, which involve housing servers and networking equipment in third-party data centers, continue to dominate as businesses seek to mitigate risks associated with data security and optimize their IT expenditures. Data Center Migration Services are increasingly important in the current landscape, as organizations aim to transition to more efficient data management solutions, ensuring minimal downtime and seamless integration. 

    Disaster Recovery Services represent a critical component due to the rising emphasis on data protection and compliance with regulatory standards.The evolving requirements within each of these segments reflect how enterprises in Europe are prioritizing resilience, efficiency, and adaptability in their IT strategies, contributing to the overall growth and innovation within the Europe Data Center Outsourcing Infrastructure Utility Services Market.

    Source: Primary Research, Secondary Research, Market Research Future Database, and Analyst Review

    Data Center Outsourcing Infrastructure Utility Services Market Deployment Type Insights

    Data Center Outsourcing Infrastructure Utility Services Market Deployment Type Insights

    The Deployment Type segment of the Europe Data Center Outsourcing Infrastructure Utility Services Market plays a critical role in shaping the region’s digital landscape. With the growing demand for flexible and scalable solutions, the Public Cloud is gaining popularity among enterprises aiming for cost-effective resource management and easy access to powerful technologies. 

    Meanwhile, the Private Cloud is significant for organizations that prioritize security, compliance, and control over their data, catering to sectors such as finance and healthcare, where stringent regulations apply.The Hybrid Cloud model continues to dominate discussions around digital transformation, enabling businesses to leverage the best of both Public and Private Clouds, thus fostering innovation and agility. 

    This segment reflects the diverse preferences among European organizations as they navigate their cloud strategies, further supported by government initiatives promoting digital growth and sustainability. The versatility offered by various deployment types aligns well with current market trends, providing opportunities for service providers to tailor their offerings to meet specific client needs while enhancing the overall efficiency of the Europe Data Center Outsourcing Infrastructure Utility Services Market.

    Data Center Outsourcing Infrastructure Utility Services Market End Use Industry Insights

    Data Center Outsourcing Infrastructure Utility Services Market End Use Industry Insights

    The Europe Data Center Outsourcing Infrastructure Utility Services Market is strongly influenced by the End Use Industry, which includes sectors such as Information Technology and Telecommunications, Banking Financial Services, and Insurance (BFSI), Healthcare, Retail, and Government. The Information Technology and Telecommunications sector is pivotal, primarily due to the rising demand for cloud services and data management solutions, as organizations increasingly migrate to digital platforms. 

    The BFSI sector relies heavily on data centers for secure transactions, regulatory compliance, and enhanced customer experiences, thereby underscoring its significance.In the Healthcare domain, data centers facilitate the efficient storage and processing of vast amounts of patient data, which is essential for improving service delivery and research capabilities. Retail also plays a major role, as e-commerce growth drives the need for advanced infrastructure to manage online transactions and customer data. Lastly, the Government sector’s focus on digital transformation and data-driven decision-making demands robust data center solutions for public services and cybersecurity.

    Overall, these sectors drive significant demand for data center outsourcing, contributing to the overall expansion and diversification of the Europe Data Center Outsourcing Infrastructure Utility Services Market.

    Data Center Outsourcing Infrastructure Utility Services Market Operational Model Insights

    Data Center Outsourcing Infrastructure Utility Services Market Operational Model Insights

    The Operational Model segment within the Europe Data Center Outsourcing Infrastructure Utility Services Market plays a pivotal role in shaping the strategy and efficiency of data center operations. This segment comprises various approaches, notably Capital Expenditure (Capex), Operational Expenditure (Opex), and Subscription models, each serving distinct organizational needs.

    Capex typically involves organizations making significant upfront investments to own and manage their infrastructure, providing long-term control. In contrast, Opex emphasizes a pay-as-you-go framework, allowing businesses to maintain flexibility and scale services according to demand, which is particularly essential in rapidly evolving markets.Subscription models offer a middle ground, where companies pay for services based on usage, which aligns well with current trends towards operational flexibility. 

    Increasing demand for cost-efficiency and rapid scalability in the European market further drives innovation and adoption in these operational models, resulting in opportunities for providers to differentiate their offerings and enhance service delivery. The importance of these models in addressing technical and financial challenges faced by enterprises makes them a critical focus within the Europe Data Center Outsourcing Infrastructure Utility Services Market landscape, driving growth and adaptation across the region.

    Get more detailed insights about Europe Data Center Outsourcing Infrastructure Utility Services Market Research Report- Forecast to 2035

    Regional Insights

    The Europe Data Center Outsourcing Infrastructure Utility Services Market exhibits a diverse regional landscape, contributing significantly to the overall industry growth. In Germany, a strong focus on advanced technology adoption and green energy initiatives bolsters its position as a leading market. The UK benefits from a robust financial sector and heightened demand for cloud services, promoting steady market progression. France, with its strategic location and infrastructure, plays a crucial role in supporting cross-border data transactions and innovation.

    Russia experiences a growing reliance on data centers to support its expanding digital economy, which is vital for its future economic competitiveness. Italy, traditionally lagging, is witnessing a resurgence in demand for outsourcing solutions, especially among SMEs seeking greater efficiency. Spain stands out for its favorable regulatory environment, which encourages investments in digital and IT infrastructure. 

    Collectively, the Rest of Europe segment offers a varied yet promising landscape, with countries in this category enhancing their digital capabilities through upgraded data center solutions and outsourcing services.Each of these regions faces distinct challenges and opportunities that underpin their respective roles within the Europe Data Center Outsourcing Infrastructure Utility Services Market.

    Europe Data Center Outsourcing Infrastructure Utility Services Market Region

    Source: Primary Research, Secondary Research, Market Research Future Database, and Analyst Review

    Key Players and Competitive Insights

    The Europe Data Center Outsourcing Infrastructure Utility Services Market has observed significant growth due to the increasing demand for efficient data management and cloud services. The competitive landscape is characterized by a mix of established players and emerging firms, each vying for market share through innovative service offerings and strategic partnerships. The need for enhanced data processing capabilities and reliable infrastructure is driving organizations to outsource their data center operations, allowing them to focus on core business activities while leveraging specialized skills and technologies. 

    This shift is not only shaped by the rapid advancement in technology but also by regulatory frameworks and the evolving demands of businesses across various sectors in Europe. As organizations increasingly orient their IT strategies towards flexibility and scalability, insights into competitive dynamics are crucial for stakeholders aiming to navigate this complex market environment.Orange Business Services has established a formidable presence in the Europe Data Center Outsourcing Infrastructure Utility Services Market, leveraging its extensive expertise in network and communication solutions.

    The company is recognized for its strong capabilities in providing tailored solutions that cater to the specific needs of enterprise clients. 

    A key strength of Orange Business Services lies in its ability to offer reliable and secure cloud services, complemented by a robust network infrastructure. This combination allows for efficient data processing and management, which is essential for organizations looking to optimize their operations. Furthermore, the company's commitment to sustainability and energy efficiency resonates well with enterprises striving to minimize their environmental impact, thereby enhancing its competitive edge within the market.Hewlett Packard Enterprise has also made a significant impact in the Europe Data Center Outsourcing Infrastructure Utility Services Market by emphasizing innovative products and solutions that drive digital transformation for businesses. 

    The company's portfolio includes advanced server, storage, and networking solutions tailored for data center optimization. HPE's strategy in Europe focuses on combining its hardware and software capabilities with cloud services to deliver comprehensive data center outsourcing solutions. The company has significantly benefited from strategic mergers and acquisitions aimed at strengthening its market presence and expanding its service offerings. This has enabled HPE to offer integrated solutions that enhance operational efficiency and flexibility, catering to the evolving needs of enterprises in the region.

    HPE's investment in research and development further bolsters its position by ensuring its services remain at the forefront of technology trends, solidifying its reputation as a key player in the competitive landscape of data center outsourcing in Europe.

    Key Companies in the Europe Data Center Outsourcing Infrastructure Utility Services Market market include

    Industry Developments

    In the Europe Data Center Outsourcing Infrastructure Utility Services Market, there have been significant developments recently. In December 2023, Wipro announced its partnership with a leading European utility provider to enhance its data center efficiency, reflecting the market's shift towards sustainable practices. 

    Additionally, in October 2023, IBM revealed its plans to expand its cloud services across Europe, indicating a growing demand for hybrid cloud solutions. The acquisition of Atos by a consortium led by Capgemini was finalized in September 2023, which is expected to strengthen service offerings and market reach. Accenture has also made headlines by acquiring multiple startups focused on AI-driven data center management, showcasing the integration of advanced technologies. 

    The market is witnessing robust growth, attributed to rising data demands and the increasing adoption of cloud services, with a notable valuation increase across major players such as Hewlett Packard Enterprise and NTT Data. The strategic initiatives undertaken by companies reflect a broader trend in the European Union towards digitization and energy efficiency in data centers, addressing both market needs and regulatory pressures for sustainability.

    Market Segmentation

    Data Center Outsourcing Infrastructure Utility Services Market Regional Outlook

    • Germany
    • UK
    • France
    • Russia
    • Italy
    • Spain
    • Rest of Europe

    Data Center Outsourcing Infrastructure Utility Services Market Service Type Outlook

    • Cloud Services
    • Managed Hosting Services
    • Colocation Services
    • Data Center Migration Services
    • Disaster Recovery Services

    Data Center Outsourcing Infrastructure Utility Services Market Deployment Type Outlook

    • Public Cloud
    • Private Cloud
    • Hybrid Cloud

    Data Center Outsourcing Infrastructure Utility Services Market End Use Industry Outlook

    • IT and Telecommunications
    • BFSI
    • Healthcare
    • Retail
    • Government

    Data Center Outsourcing Infrastructure Utility Services Market Operational Model Outlook

    • Capex
    • Opex
    • Subscription

    Report Scope

     

    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 15.82(USD Billion)
    MARKET SIZE 2024 16.93(USD Billion)
    MARKET SIZE 2035 36.2(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 7.155% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Orange Business Services, Hewlett Packard Enterprise, NTT Data, Accenture, Atos, TSystems, Global Cloud Xchange, DXC Technology, Wipro, IBM, Capgemini, Kyndryl, Fujitsu
    SEGMENTS COVERED Service Type, Deployment Type, End Use Industry, Operational Model, Regional
    KEY MARKET OPPORTUNITIES Sustainable energy adoption, Hybrid cloud integration, AI-driven management solutions, Edge computing growth, Enhanced cybersecurity services
    KEY MARKET DYNAMICS rising cloud adoption, regulatory compliance demands, increased energy efficiency focus, competitive pricing pressure, scalability requirements
    COUNTRIES COVERED Germany, UK, France, Russia, Italy, Spain, Rest of Europe

    FAQs

    What is the expected market size of the Europe Data Center Outsourcing Infrastructure Utility Services Market in 2024?

    The market is expected to be valued at 16.93 billion USD in 2024.

    What is the projected market value for the Europe Data Center Outsourcing Infrastructure Utility Services Market by 2035?

    By 2035, the market is anticipated to reach a value of 36.2 billion USD.

    What is the expected CAGR for the Europe Data Center Outsourcing Infrastructure Utility Services Market from 2025 to 2035?

    The expected compound annual growth rate (CAGR) for the market from 2025 to 2035 is 7.155%.

    Which region holds the largest market share for the Europe Data Center Outsourcing Infrastructure Utility Services Market?

    Germany is projected to hold the largest market share, valued at 5.0 billion USD in 2024.

    What will the market value for Cloud Services be in 2035?

    Cloud Services are expected to be valued at 12.8 billion USD by 2035.

    Which key players are dominating the Europe Data Center Outsourcing Infrastructure Utility Services Market?

    Major players include Orange Business Services, Hewlett Packard Enterprise, and NTT Data, among others.

    What is the market forecast value for Managed Hosting Services in 2024?

    Managed Hosting Services are forecasted to be valued at 3.5 billion USD in 2024.

    What market size is projected for Colocation Services by 2035?

    Colocation Services are anticipated to grow to 8.8 billion USD by 2035.

    What is the expected market value of Data Center Migration Services in 2024?

    Data Center Migration Services are expected to be valued at 2.25 billion USD in 2024.

    What are the projected values for Disaster Recovery Services in 2035?

    Disaster Recovery Services are projected to reach 2.3 billion USD by 2035.

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