Europe's data center market is projected to grow at 16.40% annually through 2031, with liquid cooling solutions expected

Research and Markets has released a comprehensive report on the Europe Data Center Market Landscape for 2026-2031. The European data center market is experiencing significant momentum, with investment projections expanding at a compound annual growth rate of 16.40% from 2025 to 2031. Multiple trends and driving forces are contributing to this expansion, positioning Europe as a key focus area for data center development.

Several key trends are shaping the market. Increased digitalization is driving demand for advanced data centers capable of managing vast volumes of digital data, a trend underscored by Sweden's Digitalization Strategy 2025-2030. District heating represents another important development, leveraging waste heat generated by data centers to improve overall energy efficiency, with nLighten's expansion in Stuttgart serving as a concrete example of this approach.

Cloud computing adoption is accelerating across the region, supported by stringent data protection regulations and the ongoing deployment of 5G services. OVHcloud's establishment of a new region in Berlin demonstrates the rising demand for scalable infrastructure solutions.

The European data center market is positioned for robust growth driven by technological innovations, sustainability initiatives, and strategic investments. Market participants are well-positioned to capitalize on emerging opportunities to expand their infrastructure and support digital transformation throughout the region. The demand for liquid cooling solutions, in particular, is increasing substantially due to AI and high-performance computing workloads, with these solutions expected to account for 36.52% of all cooling investments by 2031.