European Data Centre Market Report 2024

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A RAPIDLY GROWING MARKET 

Globally, the data centre market has experienced significant growth in recent years driven by the digital economy, encompassing the Internet of Things (IoT), a transition to cloud computing, and advancements in artificial intelligence (AI) and machine learning (ML). The global data centre market is projected to grow at a compound annual growth rate (CAGR) of 6.56% from 2024 to 2028, culminating in a market volume of $438.70bn (USD) by 2028. Within the European data centre market, revenue is projected to reach $85.21bn (USD) in 2024*2 and then reach a staggering $109.1bn (USD) in 2028.

CHALLENGES

As data centres grow in size, a key challenge for data centre organisations will be the need to demonstrate their energy-efficient and sustainable solutions. This will continue to prompt a shift in data centre design, site selection, investment approach, and ultimately have a knock-on affect on recruitment. Currently, there are several recruitment challenges being experienced by hiring managers across Europe. This report will highlight the main investments into the European data centre market, recruitment challenges being faced and our advice to overcoming these challenges.

GROWTH AREAS IN EUROPE

Whilst North America and Asia are experiencing rapid growth and enormous sums of investment, five of the top 10 countries with the most data centres are located in Europe: Russia, Netherlands, France, United Kingdom and Germany. A report by Cushman and Wakefield highlights that cities such Madrid are now challenging the likes of Frankfurt, London, Amsterdam, Paris and Dublin as favourable new locations for data centres. European locations within the Mediterranean are starting to become preferred data centre locations spurred on by their proximity to Africa and the Middle East. Nordic countries are also becoming more popular due to their large renewable energy reserves. Cities such as Stockholm and Oslo are witnessing an increase in data centre builds. Whilst there are emerging markets within Europe, the United Kingdom is still the largest data centre market in the continent. However, the high land price in London, around $150 (USD) per sq. ft., is expected to shift investments to other cities in the industry with lower land prices. Sticking with the United Kingdom, the new Government have out data centre construction as a leading part of their manifesto for economic growth, so it will be interesting to see if this pledge is kept and how it influences the UK’s dominance on the European data centre makret. 

RECRUITMENT CHALLENGES

From speaking with hiring managers across Europe, below is a summary of the main recruitment challenges being experienced.

• Shortage of Skilled Candidates: The rapid expansion of data centres has created a scarcity of qualified professionals. Hiring managers struggle to find candidates with the right expertise, especially in emerging technologies.
• Geographical Constraints: Data centre locations vary across Europe, with some being remote or less accessible. This geographical limitation affects recruitment efforts, as talent pools may be limited in certain areas.
• High Salary Demands: Due to the competitive landscape, skilled candidates often demand higher salaries. Balancing compensation with budget constraints poses a significant challenge for hiring managers.
• Technological Advancements: The data centre industry experiences constant technological evolution. Finding experienced candidates who can keep up with these advancements is essential but challenging.
• Employee Retention: Candidates leaving jobs before project completion disrupts operations. Additionally, the absence of work-from-home (WFH) options contributes to dissatisfaction and attrition.

OVERCOMING RECRUITMENT CHALLENGES

Navigating the complexities of recruitment in the data centre market can be challenging. However, overcoming these challenges can create growth opportunities. One effective strategy is to broaden the talent search to include candidates from aligned industries with similar levels of high regulation, such as pharmaceuticals and life sciences. These sectors often attract professionals with the skills and experience that can potentially be transferred to the data centre environment. Organisations should be open to relocation. This could involve bringing in a candidate from abroad who can deliver a fresh perspective, diverse experience and the relevant skills. Alternatively, it could mean hiring candidates into regional offices and allowing them to work remotely on a desired project in a different location. This flexibility can significantly widen your talent pool and bring in individuals who might otherwise have been overlooked.

Consideration should be given to realigning annual budgets to accommodate higher salaries for critical roles. While this may require an upfront investment, the long-term benefits of attracting and retaining top talent in these key positions can far outweigh the initial costs. To discuss your recruitment challenges, contact our dedicated data centre recruitment team.

IN-DEMAND DATA CENTRE JOBS WE’RE RECRUITING FOR IN EUROPE

Below are approximate salary ranges for the most in-demand jobs we are recruiting for across Europe. It is worth noting that salaries vary depending on each organisation, the scope of work and bonus / additional remuneration offered. If you would like to discuss salary bench marking or for further information, contact us.