Central & Eastern Europe data center construction market outlook 2024-2029

The Central and Eastern Europe data center construction market by investment is expected to reach a value of $1.334 billion by 2029 from $652 million in 2023, growing at a CAGR of 12.7%, according to Research and Markets.

The Central and Eastern Europe data center construction market provides several opportunities to operators. Several players enter the market to explore the region and enjoy the opportunities.

The growth in data center activities across the Central and Eastern Europe data center construction market will be a major source of revenue for construction contractors. Some prominent construction contractors in the Central & Eastern Europe data center construction market include AECOM, Arup, DataDome, Deerns, Flour Corporation, ISG, Mercury, Turner & Townsend, Winthrop Engineering and Contracting, and others.

Digitalization across businesses will contribute to a surge in data center investments by colocation, cloud, internet, and telecommunication providers. Telecom companies such as Orange, T-Mobile, A1 Telekom, O2 (Telefonica), Vodafone, and others are responsible for deploying and introducing 5G services in the region.

Data center operators’ trend of procuring renewable energy to power their facilities will likely continue during the forecast period. Several operators are signing power purchase agreements with renewable energy companies. For instance, in November 2023, Google signed a Power Purchase Agreement (PPA) to procure renewable energy in Poland to generate 50MW of electricity from wind farms.

The demand for data storage and hosting services will likely increase in the region, which is why the Central & Eastern Europe data center construction market will likely witness new players’ entry. Supply chain disruptions, increasing inflation rates, shortage of skilled workforce, and political disturbances in Russia are likely to have a negative impact on the market.

Vendors such as Schneider Electric, Rittal, Hewlett Packard Enterprise, and Delta Electronics provide infrastructure based on OCP design. This will aid in market revenue growth for these vendors, as many organizations prefer solutions such as 48V DC UPS systems. The major colocation operators active in the Central and Eastern Europe data center construction market include Rostelecom, IXcellerate, 3data, Equinix, Digital Realty, NTT Global Data Centers, 3S Group, and others. Research and Markets