Global Data Center Market Report

The Netherlands has emerged as a prominent player in the global data center market, offering a robust and thriving ecosystem for businesses seeking reliable and scalable infrastructure solutions. With its strategic location, a strong commitment to sustainability, advanced digital infrastructure, and favourable business climate, the Netherlands has become an essential market for global tech companies and enterprises looking to optimise and expand their IT operations (Datacenters.com, n.d.). Between 2021 and 2023, the market expanded from 1,489.0MW to 1,638.0MW, reflecting a CAGR of 4.9% (Dutch Data Center Association, 2024) (Dutch Data Center Association, 2023). As the leading hub, Amsterdam has the largest concentration of data centers in the country, with Rotterdam, Eindhoven, Limburg, and the northern regions following closely behind (Dutch Data Center Association, 2024).

The sector’s rapid growth has significantly contributed to the Netherlands’ GDP, providing job opportunities, enhancing technological innovation, and fostering economic resilience. According to the Ministry of Economic Affairs, the digital infrastructure industry contributes approximately €25.0 Bn ($26.9 Bn) to the national economy (Dutch Data Center Association, 2024). Additionally, the data center sector not only bolsters the broader digital economy but also aligns with the nation’s goals for energy efficiency and sustainable growth.

The Netherlands has implemented several policies and regulations related to data centers, focusing on sustainability, energy efficiency, and balanced spatial development. These policies are designed to promote environmental responsibility and sustainability in data centers, covering existing facilities and new constructions.

Regarding sustainability, the Dutch ‘Energy Saving Obligation,’ introduced in 2019, includes data centers under its scope. This regulation mandates that business locations consuming at least 50,000kWh of electricity or 25,000 cubic meters of natural gas annually implement energy-saving measures with a payback period of five years or less (Netherlands Enterprise Agency, 2023).

Additionally, businesses must report the energy-saving measures they have implemented to a relevant authority every four years. The regulation outlines detailed measures, including three specific to data centers and six focused on server rooms (IEA, 2024). The three measures related to the data centers include – setting a higher cooling temperature for cooling servers, using a frequency controller to limit the capacity of the room coolers and applying free cooling to the cooling installation in the data center, thereby significantly reducing energy consumption (Government of Netherlands, 2023). Additionally, in September 2023, the European Energy Efficiency Directive (EED) came into effect, promoting more sustainable practices for data center operations. The directive mandates that EU data centers with 500.0kW IT power or more, including colocation, hyperscale, and enterprise facilities, report metrics such as energy efficiency, renewable energy use, residual heat reuse, and water usage. As hyperscale facilities have a limited growth opportunity due to spatial restrictions, this directive may boost the Dutch colocation market, as companies could prefer colocation facilities over enterprise data centers, given that both are subject to the same regulations. Consequently, businesses may find it more practical to opt for modern colocation facilities rather than investing in setting up their own enterprise data centers (Dutch Data Center Association, 2024).

On the spatial front, in March 2019, a partnership of three national ministries, provincial and municipal governments, regional economic boards, and key stakeholders like the Dutch Data Center Association and energy grid operators developed the “Roadmap 2030 for the growth of data centers in the Netherlands”. The roadmap outlined key initiatives, including permitting further colocation clustering in the Amsterdam region, expanding colocation data center construction in Greater Amsterdam, allowing additional hyperscale facilities in Middenmeer and Eemshaven (home to Google and Microsoft), and exploring opportunities in South Holland (Saltzman, 2023).

In January 2024, further regulatory clarity was introduced, providing more detailed guidelines for data center development and ensuring alignment with national sustainability and spatial planning goals. The Environment and Planning Act (Omgevingswet) was introduced to consolidate all regulations for spatial projects. This law includes a decree that prohibits the construction of hyperscale data centers (exceeding 10 hectares or 70.0MW) throughout the country, except in specific locations like Eemshaven in Het Hogeland and Agriport A7 in Hollands Kroon (Greenberg Traurig, 2024) (JLL, 2024). The goal is to align data center industry growth with environmental sustainability, ensuring the Netherlands remains competitive and appealing for data center investments while safeguarding its natural resources and communities.