Western Europe Cloud Computing Market by Service Model, Deployment Model, Subscription Model, Enterprise Size, End User, and Country – Industry Analysis, Size and Forecast, 2019-2032

Western Europe Cloud Computing Market Growth and Performance

• In 2023, the Western Europe cloud computing market size was valued at US$ 130.89 billion, which is estimated to increase to US$146.60 billion in 2024 reflecting a year-on-year growth rate of 12.00%.
• By the end of 2031, the Western Europe cloud computing market is forecast to reach US$ 254.57 billion, registering a CAGR of 8.67% during the forecast period.

Western Europe Cloud Computing Market Outlook

The Western Europe cloud computing market is experiencing unprecedented growth, driven by the rapid expansion of AI, cloud infrastructure, and digital sovereignty initiatives. With record levels of data center development and significant investments from global tech giants, the Western Europe cloud computing market growth is reshaping the region’s digital landscape, positioning it as a leader in the global cloud industry. The Western Europe cloud computing market outlook remains highly positive, with a record 937 megawatts of data center capacity expected to come online in 2025, a 43% increase from 2024. Leading markets like Frankfurt, London, Amsterdam, Paris, and Dublin are driving this growth, fueled by available power, government incentives, and hyperscaler ambitions. This expansion is supported by initiatives like Zayo Group’s near-net infrastructure expansion, which is bringing 100G connectivity to thousands of businesses across Western Europe. Enhanced connectivity options are enabling businesses to adopt cloud systems and innovative technologies more easily, further driving the Western Europe cloud computing market development.

Western Europe Cloud Computing Market Trend

One of the key Western Europe cloud computing market trends is the integration of AI into cloud infrastructure. Companies like evroc are building specialized AI data centers, such as the 96 MW facility in Mougins, France, designed to optimize AI workloads. These "AI factories" focus on performance, efficiency, and sustainability, leveraging advanced cooling and heat reuse technologies to minimize environmental impact. Another major trend is the rise of sovereign cloud solutions, which address Europe’s digital sovereignty needs. AWS is investing €7.8 billion in the AWS European Sovereign Cloud, with its first region launching in Brandenburg, Germany, by the end of 2025. This initiative aims to provide customers with greater control over their data while maintaining industry-leading security and performance standards.

Western Europe Cloud Computing Market Competitive Landscape

The Western Europe cloud computing market competitive landscape is characterized by the presence of global tech giants like AWS, Microsoft Azure, and Google Cloud, alongside innovative local players. For example, evroc plans to expand its AI-focused data center network with two additional 100+ MW facilities in France, fostering AI innovation and recruiting top talent. Additionally, the launch of Virt8ra, a sovereign Edge cloud platform, highlights the region’s focus on interoperability and digital sovereignty. This collaboration, involving eight European technology organizations, aims to create a "computing continuum" from 5G cell towers to cloud providers, further enhancing the Western Europe cloud computing industry.
The Western Europe cloud computing industry is at the forefront of innovation, leveraging AI, IoT, and hybrid cloud solutions to drive digital transformation. The Important Project of Common European Interest (IPCEI) on Next-Generation Cloud Infrastructure and Services is a prime example, mobilizing €1.2 billion in public funding and €1.4 billion in private investments to develop interoperable and energy-efficient cloud technologies. This initiative aligns with the EU’s Digital Decade targets, aiming for 75% of EU companies to use cloud, AI, or Big Data by 2030. It also supports the deployment of 10,000 climate-neutral edge nodes, reinforcing the region’s commitment to sustainability and digital resilience.

Western Europe Cloud Computing Market Development

Despite the rapid growth, the Western Europe cloud computing market faces challenges such as energy consumption, data security, and regulatory compliance. However, the shift toward sovereign cloud solutions and sustainable data center practices is addressing these concerns. The Western Europe cloud computing market development is further supported by initiatives like AWS European Sovereign Cloud and Virt8ra, which are fostering a competitive and diverse cloud ecosystem. These efforts are enabling businesses to innovate, scale efficiently, and meet evolving regulatory requirements.

Western Europe Cloud Computing Market Scope

Western Europe Cloud Computing Market Coverage