Western Europe IaaS Market Size and Forecast by Offering, Deployment Model, Organization Size, Subscription Model, and End User Industry: 2019-2033

---

Industry Assessment Overview

Industry Findings: Market performance in Western Europe is shaped by tightening energy-efficiency rules and renewable-power sourcing mandates (Nov-2023), forcing providers to re-engineer DC designs. Countries such as Germany and the Netherlands have adopted stricter construction and energy-utilization parameters, pushing cloud operators to invest in advanced cooling and grid-optimization technologies. This directly affects deployment lead times and raises the strategic importance of existing high-efficiency campuses.

Industry Progression: One of the strongest signals of industry progression is the pace of datacenter expansion tied to AI compute demand. Microsoft disclosed major infrastructure expansion plans in Germany, Spain, and the UK in Mar-2024, including additional AI-oriented datacenter clusters. These deployments reshape availability-zone planning, reduce latency fragmentation across Western Europe, and intensify provider competition for renewable-power access at metro scale.

Industry Player Insights: Western Europe’s strategic direction is guided by Microsoft Azure, Google Cloud, OVHcloud, and Interxion (Digital Realty). Interxion’s Paris campus expansions (phased through 2021–2023 and ongoing capacity investments) added megawatt-scale capacity that strengthens cross-border connectivity and supports distributed compute architectures across Western Europe.