Europe Data Center Energy Storage Market Size, By Offering, By Technology, By Train Type, By Deployment Mode, By End Use, Growth Forecast, 2025 - 2034

Europe Data Center Energy Storage Market Size

The Europe data center energy storage market was estimated at USD 584.9 million in 2024. The market is expected to grow from USD 618.7 million in 2025 to USD 1.2 billion in 2034, at a CAGR of 7.2%, according to latest report published by Global Market Insights Inc.

• The increasing need for data center energy storage solution has been instrumental to provide the continuity and consistency of digital infrastructure throughout the world. According to the European Commission, data centers in the EU consumed over 90 TWh of electricity in 2024, with consumption expected to rise further as AI and big data workloads expand. To meet sustainability and efficiency targets, operators are deploying advanced battery-backed systems to reduce downtime, optimize peak load management, and align with EU Green Deal objectives.
   
• For example, in March 2024, Microsoft and Eaton Corporation collaborated to install upscale lithium-ion energy storage systems in hyperscale data centers in the U.S., Europe, and Asia. These systems will be associated with lowering energy consumption peaks, promoting resiliency and facilitating integration with renewable energy sources like solar and wind.
   
• The increasing demand to decarbonize IT functions and to embrace renewable energy sources is pushing data centers into the implementation of smart energy storage systems. Predictive energy management and storage enable energy storage to maximize load balancing, grid interactions, and continuous uptime, minimize carbon footprint, and minimize operations costs. Data storage centers in Europe and Asia have demonstrated in case studies that energy storage with intelligent energy management can enhance efficiency by up to 20% with the implementation of such measures.
   
• The COVID-19 pandemic spurred the use of remote monitoring, AI-powered management and cloud-based data center energy analytics. Physical interventions and on-site energy management were also restricted, and operators spent millions of dollars on digital twins, automated energy management systems, and energy storage solutions that are cyber-protected to achieve around-the-clock operations and supply chain resiliency.
   
• The high-speed growth of hyperscale cloud infrastructures, edge computing centers, and high-density data centers, has raised the requirement of sophisticated energy storage infrastructures. Operators and vendors are making huge investments in lithium-ion, flow batteries, and hybrid energy storage solutions to achieve reliability, safety, and performance targets. As per NREL, the deployment of energy storage in data centers can lower the cost of energy by 10-15 percent and enhance power reliability.
   
• Germany leads the world Europe data center energy storage market, due to its early adoption of high-tech energy storage solutions, synergy with renewable energy and strong investment by major companies such as Vertiv, Eaton, and Schneider Electric. This area is establishing industry standards of sustainable, cyber-security, and scalable storage systems that can be extended on a worldwide scale.
   
• The UK is emerging as the fastest-growing market for data center energy storage, driven by massive investments in hyperscale data centers, cloud infrastructure, and smart city initiatives. Government incentives, advanced grid infrastructure, and the adoption of renewable energy further accelerate deployment. High energy demand and focus on resilience make the UK a strategic hub for next-generation storage solutions.
   

Europe Data Center Energy Storage Market Trends

• Data centers are moving towards having more energy storage to supplement other renewable energy sources like solar and wind. These storage systems assist to balance the peak loads, uninterrupted operations and minimize the reliance on the standard grid power. With the inclusion of intelligent energy management levels, operators can streamline energy functions, reduce operating expenses and achieve sustainability goals. This trend is critical to organizations wishing to minimize carbon emissions but achieve high reliability and efficiency.
   
• AI and IoT are changing data center energy storage into an intelligent system that can predict maintenance and monitor real-time. The algorithms of AI predict energy demand, identify possible failures, and improve battery charge-discharge cycles. This allows operators to avoid outages, increase battery life and minimize operational risks. The intelligent energy storage systems are more efficient, reliable, and cost-effective, making them important elements of current data center infrastructure.
   
• The Europe data center energy storage market is shifting to service-based and modular storage platforms, which integrate battery management, power conditioning and energy optimization. These scalable solutions enable the data centers to scale storage capacity as per workload, compliance needs, and subsequent expansion needs. The modular systems simplify the installation process, make it easier to maintain and offer flexibility to the operators. This trend maintains high-performance hyperscale and enterprise data center growth and maximizes the total cost of ownership.
   
• For example, in February 2025, Vertiv released an example, the MegaMod CoolChip, a high-density prefabricated modular data center that supports rapid deployment of AI infrastructure. The system combines energy storage and high-end cooling, providing hyperscale and enterprise data centers with scalable and flexible deployment choices.
   

Europe Data Center Energy Storage Market Analysis

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Based on data center size, the market is divided into Small, Medium, Large. The Large segment dominated the market, accounting for around 47% in 2024 and is expected to grow at a CAGR of over 7% through 2034.
 

• Large-scale segment has become an essential part of the hyperscale data centers, cloud computing hubs, and large enterprise centers. These systems offer large-capacity, reliable energy storage to always maintain power supply, meet peak load demands, and increase resilience to outages. Large-scale storage has become an indispensable part of modern data center operations thanks to advanced energy management and predictive maintenance, as well as integration with renewable energy sources.
   
• For example, in August 2025, OpenAI, in partnership with Nscale Global Holdings and Aker, announced the development of the Stargate Norway data center in Kvandal, near Narvik. This facility is set to house 100,000 Nvidia GPUs by the end of 2026, aiming to bolster Europe's AI infrastructure. The project is powered entirely by renewable hydropower, aligning with Europe's commitment to sustainable energy practices. The initial phase involves an investment of approximately $1 billion, including $250 million in equity funding.
   
• The demand for AI workloads, big data analytics and cloud services moves towards adoption. Sustainability requirements and government subsidies of energy-saving and low-carbon infrastructure also contribute to the support of large-scale energy storage solutions in large data centers.
   
• The medium size segment will have a CAGR of over 8% due to the rise of mid-sized data centers by expanding enterprises and local businesses. These facilities provide the ideal combination of affordability, scalable computing performance, and scalable energy management systems, and are perfect when it comes to cloud hosting, in-house IT infrastructure, and business continuity solutions. Increasing need to have a reliable power backup, high-performing cooling technologies, and combination with renewable power generation only contributes to the further growth of large-scale projects in the major areas of the world.

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Based on applications, the Europe data center energy storage market is segmented into BFSI, colocation, energy, government, healthcare, manufacturing, IT & telecom, and others. The IT & telecom segment dominates the market accounting for around 33% in 2024, and the segment is expected to grow at a CAGR of above 7.5% from 2025-2034
 

• The market has the largest market share in the IT and telecom industry because the industry needs continuous power supply, low-latency services, and high network reliability. Telecom towers, cloud computing providers, and hyperscale data centers need large capacity energy storage to avoid downtime, honor SLA, and facilitate fast data traffic. High-level battery systems, plug-in UPS systems and hybrid storage technologies have been widely used within these facilities.
   
• For example, in April 2022, Google deployed a 2.75 MW battery energy storage system at its data center in Saint-Ghislain, Belgium. This installation enables the facility to store excess renewable energy generated during off-peak hours and utilize it during peak demand periods, enhancing grid stability and reducing reliance on fossil fuels. The system also allows the data center to provide ancillary services to the grid, such as frequency regulation, contributing to the overall efficiency and sustainability of the region's energy infrastructure.
   
• Large-scale energy storage infrastructure will stay dominant due to hyperscale cloud operators and telecom providers investing in renewable integration, grid stabilization, and energy efficiency. The focus on smart energy management and backup systems is becoming a priority by governments and other players in the industry to ensure operational resiliency.
   
• Colocation segment is expected to grow at a CAGR of over 8% as it seeks to meet the need to have scalable data center solutions at reasonable costs. Colocation facilities also enable businesses to rent space, power, and cooling in common data centers and do not have to construct their own infrastructure. The increased use of cloud services, hyperscale computing, and digital transformation in all industries is compelling businesses to use the services of colocation providers to ensure safe, dependable, and energy-efficient operations. The ability to rapidly scale resources and have access to advanced infrastructure further promotes the growth of colocation markets.
   

Based on Tier, the Europe data center energy storage market is segmented into Tier 1, Tier 2, Tier 3, and Tier 4. Tier 1 segment is expected to dominate the market with around 50% share due to its high adoption in hyperscale and large enterprise data centers.
 

• The market is dominated by the Tier 1 segment that serves the high reliability and high-capacity needs of the hyperscale data center market, large business, and cloud service provider market. They prefer Tier 1 solutions as the facilities must also have a constant power supply, fast performance, and seamless communication with the UPS and backup systems.
   
• The increased use of AI, big data, and high-performance computing on hyperscale and colocation facilities leads to the necessity to implement powerful Tier 1 energy storage systems. Governments and non-governmental actors are also spending heavily on green and resilient infrastructure, which continues to fuel the expansion of the Tier 1 segment around the world.
   
• For example, in March 2025, OpenAI announced the development of its first European data center, "Stargate Norway," in collaboration with Nscale Global Holdings and Aker. Located in Kvandal, near Narvik in northern Norway, the facility is set to house 100,000 Nvidia GPUs by the end of 2026. The choice of location leverages Norway's abundant renewable hydropower and low electricity costs, aligning with the increasing reliance on sustainable energy sources in data center operations.
   
• The Tier 2 segment is projected to experience tremendous growth because of increasing number of medium-sized enterprise data centers, regional colocation centers and increased cloud adoption in the emerging markets. Moderate capacity energy storage systems that balance cost, reliability, and scalability are best in these types of facilities, making Tier 2 systems the best fit.
   

Based on technology, the Europe data center energy storage market is divided into lithium-ion batteries, lead-acid batteries, nickel-cadmium batteries, flywheel energy storage, supercapacitors, and flow batteries. The lithium-ion batteries dominated the market.
 

• The lithium-ion batteries segment represents the largest share in the Europe data center energy storage industry due to their high energy density, long life cycle, and high efficiency relative to other storage technologies. These batteries offer rapid charging and discharge features, which are needed to support continuous power delivery in hyperscale data centers, cloud providers, and telecommunications networks, where downtime can cost a lot of money. Moreover, lithium-ion systems are small and scalable, enabling them to be easily deployed in larger numbers and integrated with renewable energy sources and uninterruptible power systems (UPS), which is essential as operators aim to achieve sustainability and energy efficiency.
   
• Moreover, lithium-ion batteries have low maintenance, good reliability and predictable operation under different load conditions. They are further encouraged by the reduced costs, government subsidies, and battery management systems (BMS) and thermal management solutions. The lithium-ion storage solutions introduced by Tesla, Schneider Electric and Huawei are being implemented by industry players in new and retrofit data centers, consolidating their market leadership and prompting further expansion in the Europe regions.
   
• For example, in June 2025, Redwood Materials introduced Redwood Energy, a new business division aimed at repurposing second-life electric vehicle batteries into stationary energy storage. The purpose of this initiative is to address the increasing energy requirements of AI data centers with affordable and sustainable energy storage options.
   
• Moreover, Flow batteries segment will undergo the most rapid growth, as it is scalable, can store energy over a long period, and has a more favorable safety profile. The ability to scale the power and energy capacity independently enables flow batteries to be used in large data centers with fluctuating load demands and high energy consumption.

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Germany dominated the data center energy storage market in Western Europe with around 50% share and generated USD 176.1 million revenue in 2024.
 

• Germany is dominate the Europe data center energy storage market that is driven by the large number of hyperscale and enterprise data centers, the heavy utilization of renewable energy, and the digital transformation backed by the government. The nationwide embrace of sustainability and energy efficiency is driving the implementation of modular, AI-enabled and lithium-ion energy storage systems at an accelerated rate. National programs like the National Hydrogen and Smart Grid Program and renewable integration incentives can help a data center optimize energy consumption and offer round-the-clock power supply.
   
• For example, in March 2025, TotalEnergies announced that it will invest 160 million in 6 new battery storage in Germany. These 221 megawatts of storage capacity projects are included in the TotalEnergies plan of developing a complete electricity value chain in the country. SAFT will supply the storage systems and will be developed by Kyon Energy, the subsidiary of TotalEnergies in Germany.
   
• Major players such as Siemens, Schneider Electric and Eaton are also aggressively providing sophisticated energy storage solutions to data centers in Germany. Scalable and intelligent storage can allow operators to cope with increasing IT loads, spend less on operations, and increase reliability. Moreover, the high focus on the modernization of the digital infrastructure in Germany makes the country one of the most important hubs in the context of the development of the Europe data center energy storage market.
   
• France is a fast-growing market in data center energy storage within Western Europe due to the growing hyperscale data center deployment, and cloud infrastructure, and government incentives to adopt green energy. The renewable integration and smart grid development, as well as energy-efficient infrastructure, policies are increasing the pace of advanced battery system investments, UPS solutions, and hybrid energy storage investments. Major manufacturers such as Schneider Electric and Eaton are developing sustainable, scalable storage solutions to address France digital and AI-driven power needs.
   

Poland dominated the data center energy storage market in Eastern Europe with around 50% share in 2024.
 

• The Eastern Europe data center energy storage market will be experiencing lucrative growth driven by the intensification of hyperscale data center deployments, expansion of cloud services, and the EU-driven green energy reforms. The area is emerging as a digital infrastructure destination, as energy prices are becoming competitive, grid stability is increasing, and the public-private investment is driving faster adoption of advanced storage.
   
• The market is dominated by Poland, which is backed by the strong development of cloud infrastructure, hyperscale data centers, and government incentives to integrate renewable energy. Large vendors such as Schneider Electric and Eaton are installing modular and hybrid energy storage systems that can improve the reliability and energy efficiency of IT and telecom operations.
   
• For example, in July 2024, PGE Group offered a tender on one of the largest battery storage facilities in Europe in Zarnowiec, Poland with a power output of 263 MW and a storage capacity of at least 900 MWh. In this project Poland is emerging as a leader in utility-scale energy storage, which directly benefits grid resilience, integration of renewable energy, and future DCES demand.
   
• Hungary is the fastest-growing market because of the large investments in hyperscale data centers, integration of renewables, and smart grid projects, which is becoming a nation requiring energy storage systems of high capacity and reliability.
   

The UK dominated the data center energy storage market in Northern Europe with around 54% share in 2024.
 

• The Northern Europe data center energy storage market is expected to grow at a high rate, due to the rapid uptake of hyperscale and edge data centers, rising demand in cloud services, and the sustainability and energy efficiency mandates issued by governments. Storage is rapidly being adopted by early deployment of renewable integration, energy resilience policies, and national pledges to cut carbon intensity.
   
• UK is the biggest market with a significant hyperscale data center ecosystem, tight regulations on green data, and a high presence of vendors. The UK Data Centre Energy Efficiency Scheme and the introduction of mandatory reporting of energy performance have resulted in a higher demand of advanced battery storage, modular UPS, and hybrid energy solutions.
   
• For example, in July 2025, The UK government announced a "compute roadmap" with the goal of implementing at least 6 GW of AI-capable data center capacity by 2030, making the country a global leader in AI infrastructure. The plan consists of simplified approvals, energy links, and accommodation of low-carbon power generation, such as behind-the-meter microgrids and battery storage.
   
• The fastest growing market is Denmark due to aggressive smart grid and carbon neutrality targets. Government-supported programs are driving investments in high-capacity energy storage facilities that transform IT and telecom networks into more reliable, efficient and resilient systems to incorporate renewable energy, local data center development and corporate sustainability needs.
   

The Spain dominated the data center energy storage market in Southern Europe with around 51% share and generated over USD 30.7 Million revenue in 2024.
 

• The data center, cloud computing hubs, and smart city infrastructure are set to drive Southern Europe data center energy storage market growth as demand for high capacity, reliable power rises in hyperscale data centers. Investments in resilient energy storage solutions are being fueled by government incentives to adopt renewable energy, increasing AI loads, and modernizing digital infrastructure. Market adoption is further accelerated by public-private partnerships and sustainability requirements.
   
• Spain is the most successful market in Southern Europe with government subsidies to the green data centers, tax incentives to integrate renewable energy sources and considerable investment of local and international DCES providers. Schneider Electric and ABB companies are enhancing the use of Tier 1 and hybrid energy storage, which enhances efficiency, reliability, and carbon reduction in Spanish plants.
   
• For example, in May 2024, Schneider Electric designed a 50 MWh hybrid battery storage at a Madrid hyperscale data center, which uses lithium-ion and flow batteries to supply continuous power, integrate renewable power, and enhance the operational resilience of critical IT workloads.
   
• Italy is the most rapidly developing market, owing to the developments of AI and cloud computing management in Milan, Rome, and Turin. Domestic companies such as Enel X and ABB are implementing modular and scalable energy storage systems to help data centers to fulfill high energy requirements and achieve sustainability objectives.
   
• For example, in September 2024 an Enel X 30 MWH lithium-ion battery at a data center in Turin, which improves energy efficiency, backup supply, and grid interaction of high-demand computing workloads.
   

Europe Data Center Energy Storage Market Share

• The top 7 companies in the market are Schneider Electric, Eaton Corporation, ABB, Vertiv, Huawei, Legrand, and Mitsubishi, contributed around 48% of the market in 2024.
   
• Schneider Electric emphasis on sustainability and unified energy management in data centers. The modular UPS, lithium-ion batteries, and AI-driven energy optimization are coupled in its strategy. The company has invested in predictive maintenance, digital twins, and green infrastructure projects and is increasing its presence in hyperscale, colocation, and edge facilities around the world.
   
• Eaton Corporation is concerned with hybrid energy storage and scalable UPS. Its strategy combines energy-efficient battery systems, modular deployment, and predictive analytics to achieve high reliability, lower total cost of ownership and sustainability requirements in enterprise and hyperscale data centers.
   
• ABB focuses on intelligent energy storage, grid integration, and power conversion systems. Its operational approach uses IoT-enabled operational monitoring, predictive maintenance, and automation to enhance operational efficiency and resiliency in large-scale and distributed data centers and enable integrating renewable energy.
   
• Vertiv has a focus on modular energy storage, thermal control, and UPS. The company is investing in remote monitoring, life cycle capability, and fast deployment, with the goal being better operational uptime, energy efficiency, and scalability of enterprise, colocation, and edge data centers.
   
• Huawei specializes in smart and affordable energy storage in data centers. Its approach will combine energy management based on AI, lithium-ion-powered storage, and hybrid power by supporting hyperscale cloud and edge infrastructure with high efficiency, reliability, and sustainability.
   
• Legrand focuses on power distribution that is energy efficient and modular UPS. Its strategy combines intelligent monitoring, predictive maintenance, and sustainability-based infrastructure solutions to improve operational reliability, flexibility, and environmental and energy regulation compliance in medium to large-scale data centers.
   
• Mitsubishi uses lithium-ion and hybrid high-capacity storage technologies with predictive analytics and energy optimization software. The strategy enables its data centers to be resilient, grid-ready, and encourages the integration of renewable energy, scalability, and efficiency in global enterprise and hyperscale deployments.
   

Europe Data Center Energy Storage Market Companies

Major players operating in the Europe data center energy storage industry are:
 

• ABB
• Delta Electronics
• Eaton Corporation
• Huawei
• Legrand
• Mitsubishi Electric
• Schneider Electric
• Siemens
• Tesla
• Vertiv
   
• Leading European and international companies are advancing DCES solutions by integrating AI, IoT, and predictive analytics to enable real-time energy monitoring, load management, and predictive maintenance. Modular UPS systems, hybrid lithium-ion and flow battery technologies, and next-generation power electronics are enhancing efficiency, scalability, and system resilience. Advanced cybersecurity ensures protection against digital and grid-based threats, supporting uninterrupted operations in hyperscale and enterprise data centers.
   
• Key players are expanding cloud-based energy management platforms, digital twins, and remote monitoring tools across Europe to optimize power usage, reduce operational costs, and maximize lifecycle performance. AI-driven energy optimization combined with smart microgrid integration allows seamless interaction with renewable sources, improving sustainability metrics and supporting carbon-neutral targets.
   
• Companies are strategically investing in regional growth by complying with European regulations, grid standards, and green energy mandates. Firms emphasize lifecycle services, including modular upgrades, predictive maintenance, and long-term service contracts, ensuring high uptime, energy efficiency, and operational reliability for hyperscale, colocation, and edge data center facilities across Europe.
   

Europe Data Center Energy Storage Industry News

• In May 2025, ABB launched BESS-as-a-Service, a subscription-based Battery Energy Storage System solution requiring no upfront capital expenditure. Designed for industries including data centers, logistics, and commercial infrastructure, the service accelerates the adoption of clean, resilient energy, enabling organizations to transition seamlessly toward net-zero operations.
   
• In November 2024, Eaton introduced its xStorage battery energy storage system, aimed at helping commercial and industrial clients achieve decarbonization and electrification goals. The system supports onsite renewable energy integration, optimizes energy costs, and ensures resilience by enabling off-grid operations during power outages.
   
• In October 2024, Delta Electronics, Inc. unveiled the UZR Gen3 Series UPS Li-ion Battery System for data centers. This next-generation lithium-ion battery rack enhances safety, reliability, and total cost of ownership while integrating seamlessly with Delta’s existing power and cooling solutions, representing a significant advancement in critical power management technology.
   
• In June 2024, Legrand bought Davenham and VASS to broaden its data center portfolio. These acquisitions will boost Legrand’s footprint in the ‘grey’ space (technical rooms) while reinforcing its foothold in the ‘white’ space (server rooms), in the ever-expanding data center market.
   
• In June 2024, Vertiv and Ballard Power Systems entered a strategic technology partnership for the purposes of backup power solutions for data centers and critical sites, with power output from 200kWs to multiples of MW. The partnership has the aim of proving the technical effectiveness and customer value of hydrogen fuel cell powered solutions. In support of this strategy, Vertiv has used Ballard's fuel cell power modules in its Vertiv Liebert EXL S1 uninterruptible power supply (UPS) developing the concept in a proof of concept at Vertiv’s Ohio location.
   
• In April 2024, Schneider Electric launched a BESS that integrates into flexible, scalable, and efficient architectures. The system supports both AC and DC coupling and ranges from 60kW to 2MW, offering configurations with 2-hour and 4-hour durations, which cater to different energy needs in data centers.
   

The Europe data center energy storage market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

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Market, By Data Center Size

• Small
• Medium
• Large

Market, By Technology

• Lithium-ion batteries
• Lead-acid batteries
• Nickel-cadmium batteries
• Flywheel energy storage
• Supercapacitors
• Flow batteries

Market, By Tier

• Tier 1
• Tier 2
• Tier 3
• Tier 4

Market, By Application

• BFSI
• Colocation
• Energy
• Government
• Healthcare
• Manufacturing
• IT & telecom
• Others

Market, By Capacity Range

• 10-200 kW
• 200 kW-2 MW
• 2-10 MW

The above information is provided for the following regions and countries:

• Western Europe
  • Germany
  • Austria
  • France
  • Switzerland
  • Belgium
  • Luxembourg
  • Netherlands
  • Portugal 
• Eastern Europe
  • Poland
  • Romania
  • Czechia
  • Slovenia
  • Hungary
  • Bulgaria
  • Slovakia
  • Croatia
• Northern Europe
  • UK
  • Denmark
  • Sweden
  • Finland
  • Norway
• Southern Europe
  • Italy
  • Spain
  • Greece
  • Bosnia and Herzegovina
  • Albania