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Central and Eastern Europe Data Center Market - Investment Analysis and Growth Opportunities 2020-2025

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Last updated: 1 Jun 2020 Update History

Report Pages: 114

Partner Publisher: Arizton Advisory and Intelligence

Analyst: Faizan Akhtar

Executive Summary

Data Center Market in Central and Eastern Europe Witnessed Construction of over 15 New Projects in 2019

Central and Eastern Europe is expected to have more than 365 million internet users and over 2 billion connected devices by 2022. This growth will increase data demand and investments in data centers in the region. ICT and finance and insurance sectors are identified as major end-users in Central and Eastern Europe, contributing maximum growth toward the digital economy. In 2019, Google announced to open a new cloud region in Poland in partnership with Poland’s Domestic Cloud Provider (DCP) to accelerate the adoption of cloud services in the country. Cloud computing is one of the fastest growing segments in the IT services market in Poland. The growth in artificial intelligence and the rise of smart cities initiatives taken by governments in countries will increase the demand for edge computing and edge data center deployment in the region. IoT, big data, and artificial intelligence are likely to accelerate digitization in Central and Eastern Europe. Central and Eastern Europe is expected to have more than 1.5 billion IoT devices in 2024. Major verticals which witnessed the largest spend on IoT were manufacturing, transportation, and utilities. The adoption of big data technology is gaining popularity in Central and Eastern Europe with 25% of enterprises using the technology along with analytics. Telecommunication, finance, and utilities sectors are the major end-users deploying big data technology.

What is the Impact of the Current COVID-19 Pandemic in the Central and Eastern European Market?

In Central and Eastern Europe construction projects have not been halted completely since the outbreak of the pandemic. Construction tasks continue with precautionary measures to ensure the safety of workers. The Polish government has framed special laws to support the construction sector. Russia also plans to develop an anti-crisis program for the construction industry. The impact of COVID19 is moderate on the data center market in Central and Eastern Europe. However the upcoming projects will get impacted due to the pandemic.

What are Key Factors Attracting Investments in Central and Eastern Europe?

A significant investment is likely to be made on data center projects in the Central and Western European region during the period 2019-2025. The SaaS segment contributed around 60% to the CEE cloud computing market in 2018. The IaaS and PaaS segments are expected to grow at a CAGR of 30% during the forecast period. Moreover, the implementation of the Data Sovereignty law in Russia will prompt cloud service providers to store personal data within the country, thereby increasing investments by local data center service providers. Also, the GDPR is likely to aid in the growth of the market in other countries in the European region. Equinix, Conova Communications, IXcellerate, Interxion, Boosteroid, 3data, Datapro, are the prominent investors in the market.

What Business Intelligence does this Report Provide?

The report provides Central and Eastern Europe data center investments in terms of area (square feet) and power capacity (MW) in major cities in the country. An in-depth analysis of the impact of the COVID-19 on the Central and Eastern Europe data center market is included in the report.

Furthermore, the report also includes a detailed analysis of the colocation industry in Central and Eastern Europe, and retail & wholesale colocation pricing in Central and Eastern Europe.

A detailed study of the existing market landscape, an in-depth industry analysis, and insightful predictions about the Central and Eastern Europe data center market size during 2020-2025, is included in this exclusive report.

The report further categorizes the Central and Eastern Europe data center market into multiple segments and sub-segments with sizing and forecast. The report also profiles prominent investors, construction contractors, and infrastructure vendors in the Central and Eastern Europe data center market.

Key Developments

  • An increase in the adoption of lithium-ion UPS systems will reduce the OPEX of the facility, thereby influencing the market demand.
  • The contribution from server systems suitable for machine learning and artificial intelligence workloads is expected to grow during the forecast period.
  • The adoption of diesel generators is high in Central and Eastern Europe, with DRUPS systems gaining traction in the region. The trend is expected to continue during the forecast period.
  • Metered/Monitored PDUs will experience a strong adoption in the market, which will be overtaken by switched/managed PDUs after 2022. 2N redundant rack PDUs are adopted in the data center market.
  • Greenfield projects are witnessing increased investments that are likely to offer major income opportunities for general contractors and sub-contractors in the market.
  • Intelligent security systems such as HD cameras and biometric access are gaining increased traction. These systems are reducing the use of card-based access control in data centers across Central & Eastern Europe.
  • The need for end-to-end monitoring with DCIM among Central & Eastern European data centers is on the rise.

Key Companies Mentioned in this Report Include

IT Infrastructure Providers – Atos, Arista, Broadcom, Hewlett Packard Enterprise, Cisco, NetApp, Dell Technologies, IBM, Lenovo, Huawei, Fujitsu, Supermicro

Construction Service Providers - Warbud, Arup, Astron Buildings, eld, ISG, Exyte & M+W, AODC SP. Z O.O., Qumak S.A., H1 Systems, Citrus Solutions

Support Infrastructure Providers – ABB, Caterpillar, Cummins, Eaton, Legrand, STULZ, Schneider Electric, Vertiv, Euro-Diesel (KINOLT), Rittal, Climaveneta, Riello UPS, Socomec, KOHLER(SDMO), MTU Onsite Energy

Data Center Investors - Equinix, Boosteroid, 3data, Host-telecom.com, s.r.o., CEZ Group, Vapor IO, Conova Communications GmbH, Telecor, ITLDC, IXcellerate, DataPro, Rostelecom, Rosenergoatom, Selectel, MTS, Yandex, AzInTelecom , IT and eGovernment, Republic of Serbia, MCF Group Estonia, Vantage Data Centers

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