Netherlands Data Center Rack Market

Netherlands Data Center Rack Market Analysis

The Netherlands Data Center Rack Market size is estimated at 0.30 million units in 2025, and is expected to reach 0.36 million units by 2031, at a CAGR of 3.3% during the forecast period (2025-2031).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

Under Construction IT Load Capacity: The upcoming IT load capacity of the Netherlands data center rack market is expected to reach over 1,400 MW by 2029.

Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 6 million sq. ft by 2029.

Planned Racks: The country's total number of racks to be installed is expected to reach 338,000 units by 2029. Amsterdam will likely house the maximum number of racks by 2029.

Planned Submarine Cables: There are close to 10 submarine cable systems connecting the Netherlands, and many are under construction.

Netherlands Data Center Rack Market Trends

Cloud segment to hold major share in the market

• Cloud storage in the Netherlands is growing due to the growing demand for cost-effective data backup, storage, and protection across all businesses and the need to manage data generated by the increasing use of mobile technology.
• Governments are also promoting public cloud services and changing regulations. Public cloud services have become more secure, and mass deployment of updates and patches has made software troubleshooting much easier than before. For these reasons, the government revised the National Cloud Policy in 2011.
• Additionally, 49% of Dutch banks use the cloud, of which 38% use the public cloud. Almost 60% of Dutch healthcare institutions use private clouds, of which 43% also use public clouds. Additionally, research shows that more than 50% of government agencies worldwide use office applications in the cloud. These figures are a major driver for the 2011 revision of the Dutch National Cloud Directive.
• The hyperscalers (e.g., AWS, Azure, Google Cloud) enter new agreements with public sector and on-premises cloud partners, including KPN, which offers Azure and AWS services. The move by the Dutch government also shows that the cloud has reached a level of maturity in the country and can be applied to a variety of government-related use cases. This shows that more racks are being used in data centers.

Full rack segment to hold major share in the market

• Tier-3 and Tier-4 data centers are growing in popularity as the number of conglomerates continues to grow with the advent of 24/7 business continuity services. This increases the number of racks and indicates using the entire rack for consolidating such data.
• With the advancement of technology, people started using various internet-connected devices such as smartphones, gaming consoles, and smart devices to access streaming entertainment, online games, and other services. These applications involve the use of high data intensities, thus increasing the use of full racks in data centers.
• With the increasing acceptance of smart devices by people, customers need more racks in data centers in order to better serve them.
• In addition, the deployment of 5G should ensure adequate speed availability. As a result, the country has introduced cloud computing, internet penetration, and fiber optic technology.
• In the Netherlands, full racks occupy a large market share as the space shortage among various companies is becoming more acute. As businesses generate massive amounts of data every day, they are increasingly relying on data centers to efficiently manage their databases and storage. Therefore, a key factor in the use of data center racks is the increasing use of fully configured data centers.

Netherlands Data Center Rack Industry Overview

The Netherlands Data center rack market is relatively low in terms of competition and has a few players in the market, such as HOSTKEY B.V., Eaton Corporation, Black Box Corporation, Rittal GMBH & Co.KG, and Schneider Electric SE. These major players focus on expanding their customer base in the country. These companies leverage strategic collaborative initiatives to increase their market share and profitability. The increase in the data center construction corresponds to increasing demand for the number of racks in the data centers.

• In December 2022, A new data center was being built in Eindhoven by NorthC Datacenters, a local provider of data centers in the Netherlands. In October 2023, the latest data center will likely start operating, which will have a total surface area of nearly 4,000m2.
• In April 2022, The regional Dutch data center provider NorthC Datacenters had a contract to buy the Swiss data centers and connection offerings of Netrics AG. The deal consists of three data centers with a combined floor area of around 13,000 m2, a power capacity of over 7.5MW, and room for future growth, two of which are located in Münchenstein (near Basel) and one in Biel.

Netherlands Data Center Rack Market Leaders

Netherlands Data Center Rack Market News

The increase in the data center construction corresponds to increasing demand for the number of racks in the data centers. For instance,

• June 2023: Digital Realty acquires 9 acres for a 20MW data center in Amsterdam, the Netherlands. The facility is to be interconnected with Digital Realty's existing Schiphol facilities.
• October 2022: Eaton launched its Open Compute Project (OCP) Open Rack v3 (ORV3) compatible solutions. It was purpose-built and preconfigured with a focus on the efficient and scalable delivery of critical power for their data centers seeking to deploy ORV3 racks.