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Summary
The global data center market has experienced sustained growth, with North America and Asia-Pacific being the dominant regions. Although exact figures for the French market are not specified, estimates suggest that France holds a 3.6% share of the global data center landscape, with a value of around $1.49 billion, driven by factors such as 5G, edge computing and increasing data traffic. The French market is characterized by a mix of local and foreign players, with Paris being the nerve center for data centers, home to 46% of the country's total. Key developments in the sector include an upward trend in mergers and acquisitions, mainly led by US and Asian companies, and increased consolidation activity on the part of private equity firms.
Demand in the data center market is mainly driven by data-intensive sectors, with services such as file storage, databases and customer relationship management being the most in demand. The sector faces challenges such as the need for high energy consumption and compliance with redata protection, energy efficiency and regulatory compliance.
The main players are Equinix, Digital Realty Trust and various cloud service providers such as Amazon, Google and Microsoft. The price of data center services varies, influenced by technical features, energy costs and location-specific factors. Data centers in Paris have been valued at $7.7/w in terms of construction costs, and France is pursuing digitization aggressively, marked by significant government investment in broadband and R&D projects.
Trends and dynamics in the French data center market
As digital transformation continues to permeate various sectors of the economy, the French data center market is undergoing notable expansion. The French market is a mosaic of local and international players, creating a competitive landscape conducive to innovation and service diversity. At the heart of this growth are the increasing demands of data-intensive sectors, technological advances such as edge computing, and a national pivot towards 5G technology.
This figure takes into account the fact that ancillary components such as power generation and security services are not included, suggesting an even higher actual market size. The French data center industry is not only growing in value, but also in physical infrastructure, with the number of large data centers increasing by around 50%. This growth trajectory is partly fuelled by the cloud computing boom and the presence of American giants such as IBM and Amazon. In terms of capacity, by 2025, data is expected to swell in French data centers, which could mark a continued increase in the number of such facilities.
Although Paris stands out as the country's data center nerve center, the distribution of data centers in France reflects regional nodes of economic activity. Notably, Paris occupies a coveted position as one of the world's leading cities hosting a wide range of tenants, confirming its strategic importance in the international data center arena. Demand for data center services in France comes mainly from sectors already imbued with digital practices, such as information-communication.
The services most in demand by companies are file storage, databases and customer relationship management systems. The trend towards digitization of the French economy is increasingly evident, with substantial investment in national broadband infrastructure and R&D initiatives underlining the government's commitment to fostering a technologically advanced environment. Such a dynamic market is not without its challenges, not least in terms of energy consumption.
Data centers in France are considered to be major energy consumers, creating the dual challenge of managing costs and taking into account the impact of operations on the environment. In these conditions, the French data center industry finds itself at a critical crossroads, where technological innovation, regulatory measures and sustainable development efforts are likely to shape its evolution in the years to come.
In the data center industry, global and local players play a key role in market dynamics. Here's a closer look at some of the key players cited in the text above, each making a significant contribution to market evolution.
- Equinix: a colocation titan Equinix is a colossal figure in the data center market, best known for its wide range of colocation services that meet the varied needs of businesses worldwide. A mark of respect and authority, Equinix has forged a solid presence, particularly following its strategic acquisition of TeleCity. This operation not only extended its footprint, but also consolidated its position in the European data center space.
- Digital Realty Trust: Global data center excellence Digital Realty Trust, another industry giant, is renowned for its wholesale data center solutions. With an influence that spans every continent, the company's merger with Interxion has only amplified its capabilities and reach in Europe, giving it access to the world's largest data center.e in Europe, giving it access to key markets such as Paris and propelling it to the forefront alongside Equinix.
- China Telecom: Asia's data powerhouse As part of Asia-Pacific's contribution to the global market, China Telecom is one of the region's leading providers. Its extensive portfolio and significant influence are linked to Asia's growing dominance in data centers.
- NTT Communications: Expanding global footprint Japan's NTT Communications has also made significant strides in the sector, leveraging its significant investments and customerle to secure a remarkable position in the global and French markets, reflecting the general trend towards Asian expansion in the data center sector.
- Global Switch: the story of a successful Chinese investment Global Switch, although headquartered in London, demonstrates the power of international investment, with a major acquisition carried out by a consortium called "Elegant Jubilee", which includes Chinese investors. The deal demonstrates China's strategic expansion into global markets, and highlights the interconnectedness of the data center industry.
- OVH: the local innovator France's OVH exemplifies innovation and the growth of local data center champions. Its services, which range from web hosting to data storage and processing, meet the needs of many French and European companies.
- Iliad Datacenter: A pioneer in France Another important local player is Iliad Datacenter, the infrastructure arm of French telecoms company Iliad, which has advocated the creation of a data center in France.
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Inforamtion
- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 22/04/2024
Summary and extracts
1 Market overview
1.1 Data center market definition and overview
Data centers comprise a vast network of interconnected servers and computer components used by organizations to store and maintain data. Data centers are located in large warehouses in geographical areas with advanced connectivity and technological infrastructure. The components of a data center include mainframe computers, servers, disk array storage racks, networking and telecommunications equipment, etc.
In this study, a distinction is made between two forms of data center:
- traditional ("on-prem") data centers ;
- cloud services data centers.
Although the function and ultimate purpose are the same, the two methods of data storage vary. In section 3.4, we'll develop this difference.
The global data center market is booming, and is set for sustained growth in the years ahead for a number of reasons, including greater digital and technological integration, the increasing exchange of information linked to the Internet, and the growing use of cloud services.the global market for data centers is booming, and should see sustained growth in the years to come, for a number of reasons, including greater digital and technological integration, the growing volume of information exchanged via an increasingly powerful Internet, the need to outsource data for security and cost reasons, and the rise of connected devices. The global market is dominated by North America and Asia.
In France, the market is also expanding, albeit at a slower pace than some of its European counterparts. In particular, 5G and advanced computing are driving this expansion. Paris is the dominant location for data centers in France.
1.2 A growing global market dominated by the United States
The global data center market is valued at $***.* billion in ****, and is expected to grow at a CAGR of *.**% over the following period. This is impressive growth, fuelled by increasing demand for data centers caused by the digitization of the world, increasingly advanced technologies and the development of technologies such as ...
1.3 The French market is expanding
According to the INSEE classification "Data processing, hosting and related activities" NAF code: **.**Z, which perhaps broadens our market perimeter a little, and which takes into account sales excluding VAT, we can establish the market size of data centers in France.
Growth in sales of data processing, hosting and related activities France, ...
1.4 The crucial role of data centers in the age of global pandemics and the rise of teleworking
In ****, when confinement made teleworking compulsory, the entire communications sector underwent a veritable upheaval in its organization due to an exceptional increase in Internet traffic.
Crucial to maintaining network stability, data centers were given critical infrastructure status in some countries during the Covid-** crisis. This is due in particular to the ...
2 Demand analysis
2.1 Data-intensive sectors and services dominate demand
The datacenter is essential to the operation of networks: otherwise a website or mailbox wouldn't work. It can be operated internally or externally, with the support of service providers. It provides IT services and enables software to function.
Standardizing Internet usage and data consumption
As of June **, ****, Internet statistics show that ...
2.2 Advanced computing and 5G boost demand for data centers
According to Les Echos, several key aspects will be the main drivers of data center demand in the future:
*G The fifth-generation wireless network standard will see the expansion of the mobile Internet into the Internet of Things (***), home automation and smart cities. What's more, efficiency is set to increase: ...
2.3 Private data centers prevail
How organizations are meeting their demand for advanced IT capacity World, ****, in Source: ****
The chart above illustrates the different types of data center most in demand. We note that in **% of cases, companies use their own data centers (***). This may be because it excludes third-party costs, and therefore saves money. But ...
2.4 Demand from SMEs
The graph below shows a breakdown of data center customers worldwide.
Breakdown of companies using data centers to bring applications online Worldwide, ****, in Source: ****
This data shows that SMEs (***), and so they outsource the service.
In second place, we find enterprises (***). We can therefore conclude that smaller companies are more likely ...
3 Market structure
3.1 An increasingly concentrated sector
Today, there are some *** data centers in France. The market represents a mix of foreign and local players.
Access to initial financing is very important, as it is the initial cost (***) that is most important, with revenues guaranteed by growing demand.
On a global scale, the industry has been affected by ...
3.2 France's investment in digitization will stimulate the creation of data centers
There are a number of points to consider when estimating where the French data center market is heading in terms of capacity, investment and expansion.
First of all, France is already an attractive target market: it's the third-largest ICT market in Europe. What's more, its workforce is highly qualified, as the ...
3.3 French data centers are located around Paris
Companies' enthusiasm for Cloud Computing has led to a strong demand for data centers in Paris: financial institutions in particular.
The focus here is on neutral data centers (***).
Distribution of data centers in France France, ****, in units Source: ****
Regional distribution of neutral data centers in France France, ****, in deliverable IT power Source: ...
3.4 Cloud computing and data storage - a disruption?
We need to distinguish between traditional on-prem data centers and cloud computing services, which also use data centers, but in a different way. For example, on-prem data centers require substantial initial investment in hardware. In contrast, cloud services require an organization to pay for the portion of hardware it uses ...
4 Offer analysis
4.1 Data center services
In this study, we have broken down the definition of a data center into two segments: (***) host service providers and cloud providers. The decomposition can be continued through the following:[***]
Cloud; SaaS ; PaaS ; Hybrid Cloud ; Data centers.
Most of the European market is focused on colocation, hosting and low-end and high-end ...
4.2 Prices vary according to location
Data center prices vary widely, from €** per month for a basic dedicated server at OVH to several thousand euros per month. They differ from company to company and from country to country.
In addition, the price depends on the technical characteristics of the offer given to the end customer, which ...
4.3 Factors determining data center location
Real estate and physical considerations
Development pipeline The development of a potential data center depends on a number of factors, including sufficient electrical power, land accessibility, good financing possibilities, credible customers, and so on. In general, Singapore, London, Silicon Valley, Dublin and Northern Virginia are the best locations in this respect. Environmental ...
4.4 Operation and cost analysis
Analysis of operating costs
According to a **** report by the U.S. Chamber Technology Engagement Center (***), not least because of the IT equipment. In the typical data center considered in the report, the initial investment is around $*** million for a **,*** m² data center. Around **% of the investment is in hardware. The ...
4.5 The challenges facing data centers
The security challenge
Data has become a source of covetousness, and data centers need to respond to the security challenge and raise their level of protection against attacks. We are therefore seeing an increase in "Zero Trust" IT architectures to prevent anyone from connecting to the network, and homomorphic encryption that ...
5 Regulations
5.1 French and European regulatory framework
European and national legislation can influence the direction of data center market expansion in France. There are three main regulations to be complied with
Data protection laws (***); Energy efficiency and emission limits (***) ; Data center compliance with third-party standards (***)
a) Law n°**-** of **** on information technology, data files and freedoms (***) Decree ...
6 Positioning the players
6.1 Segmentation
- OVH
- Amazon Web Services
- ILIAD
- EQUINIX
- Interxion
- APL Data center
- Jerlaure
- Wattdesign
- Adista
- Etix Everywhere
- Data4 service
- Marseille, Hub digital
- Altice
- Celeste Telecom
- Scaleway (Iliad Groupe)
- Google Cloud
- Microsoft Azure
- Schwartz Group (Lidll Kaufland, Schwartz Digit)
- Snowflake Computing
- XEFI
- NTT Nippon Telecom
- Evernex
- Green4Cloud
List of charts
- Google data centers by continent
- Size of the data center market
- Data center investments by state
- Number of data centers by country
- Data centers in France
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Latest news
Gard-based start-up Green4Cloud launches two data centers - 29/03/2024
- - Location of data centers: Vézénobres (Gard) and Saint-Aunès (Hérault).
- - Number of data centers planned by 2025: 17.
- - Current number of employees: 5.
Datacenters: Japanese telecom giant NTT builds a "campus" just outside Paris - 23/02/2024
- NTT is one of the world's top three providers of data storage centers.
- NTT has announced the construction of a "campus" of three data centers in the Essonne region of France.
- NTT plans to invest more than $10 billion in data center growth between 2023 and 2027.
Lyon-based Xefi boosts its digital growth - 02/02/2024
- - The company is investing 60 million euros in a new site in Rillieux-la-Pape, near Lyon.
- - The company currently has 2,000 employees, but plans to increase this to 700 at the new site within 18 months.
- - The future 17,500 m2 site will comprise four buildings, including offices for the 500 head office employees, a sixth 80-bay data center, a brasserie and a training center.
- - The company has five data centers, two of which are HDS-certified (for healthcare data hosting).
- - The company has sales of 355 million euros, with growth of 16% by 2023 and 100% by 2020.
- - It has around 180 branches, including 160 in France, and serves 100,000 customers.
- - Xefi is expanding in Europe, with branches in Belgium, Switzerland and Spain.
- - The company plans to have 250 branches in France by 2026 and 400 in Europe, expanding into Italy, Germany and the Netherlands.
- - One of the company's development processes is franchising, enabling proximity to customers.
- - In December 2021, Xefi took over Novatim, a company based in Courbevoie, France
The five key axes of OVHcloud's strategic plan to 2026 - 20/01/2024
- OVHcloud employs 2,900 people worldwide, including around 2,000 in France
- 2023: sales of €897 million, with annual growth of 14%.
- Public cloud accounts for 62% of sales
- The public cloud market is estimated to be worth between 230 and 250 billion euros worldwide by 2023, compared with 16 to 19 billion euros for the private cloud.)
- Development of PaaS (Platform as a service), increasing their number from 10 to 40
- Public cloud accounts for 18% of sales
- by the end of 2023, there will be 32 data centers worldwide; by the end of 2024, the figure should rise to 45, including 22 in France.
- OVHcloud is tackling edge computing, which involves processing data as close as possible to where it is generated.It plans to open 150 local zones
Discount king Lidl becomes a cloud provider - 15/01/2024
- Lidl's parent company, the Schwarz Group, aims to become a national cloud champion by targeting German SMEs
- Creation of a European center for artificial intelligence In Heilbronn, southern Germany, the Schwarz Foundation is investing 2 billion euros.
- A new campus designed to train 5,000 IT specialists by 2025 is being built just a few kilometers from Heilbronn.
- The Schwarz Group intends to become a national cloud champion.
- Under the name "Stackit", the IT branch of the Schwarz Group markets the cloud services originally created to manage the data of its own Lidl stores.
- With its 20,000 servers serving 13,700 Lidl and Kaufland sites in some 30 countries, the Schwarz Group already provides Stackit with a solid foundation for the future
- Acquisition of development specialist Camao IDC and Israeli start-up XM Cyber
- the Schwarz Group invests €8 billion a year, out of sales of €154 billion, in "strategic and forward-looking projects, including digitization
- Schwarz Digit employs 4,500 people
Data centers: Data4 strengthens its foothold in Essonne - 14/12/2023
- Data4 has been based in Essonne for 17 years.
- Its campus in Marcoussis (Essonne) comprises twenty data centers spread over 46,000 square meters.
- The group is located on a 110-hectare site, 70 of which are classified as "protected forest".
- within the next 5 years, Data4 plans to double the surface area of its park in the department to 100,000 m2.
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