Erik Isakson
Morgan Stanley analysts have raised their European data center growth forecasts.
Analysts expect the industry to grow six times to 38 gigawatts by 2035, compared to five times previously projected.
This is driven by increased demand from hyperscalers, -- large tech companies that build and manage data centers and cloud computing services -- the construction of mega data center campuses, secondary markets including Spain, Milan, Zurich, and Scandinavia, and blue-chip projects in the UK and France, said Katy L. Huberty, global director of research at Morgan Stanley, in a note.
Europe Utilities analysts also estimated that data centers could lead to about 270 terawatt hours of incremental power demand by 2035.
According to the decarbonization targets of big tech companies, about 100 gigawatts of new wind and solar projects could be required by 2035, implying €115B of capex opportunity for renewable developers by that year, and €18B of net present value, which calculates the return on investment.
In addition, data centers are expected to account for about 6% of Europe’s power demand by 2030, and more than 8% of the total power consumption by 2035.
Some of the top European tech companies are: ASML Holding N.V. (ASML), Dassault Systemes SE (OTCPK:DASTY), Deutsche Telekom AG (OTCQX:DTEGY), SAP SE (SAP), Accenture plc (ACN), Telefonaktiebolaget LM Ericsson (ERIC), Amadeus IT Group, S.A. (OTCPK:AMADF), Nokia Oyj (NOK), Vodafone Group plc (VOD), Hexagon AB (OTCPK:HXGBF), STMicroelectronics N.V. (STM), Infineon Technologies AG (OTCQX:IFNNY), NXP Semiconductors N.V. (NXPI), and Adyen N.V. (OTCPK:ADYEY).
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