The Ripple Effect of Data Center Investments in Belgium

Belgium Data Center

As the world increasingly shifts toward digital solutions, the demand for robust and secure data infrastructure is surging.

This trend is particularly evident in Belgium, where data centers are emerging as critical components in the tech ecosystem. With the rise of remote work, cloud storage, and artificial intelligence (AI), the country is positioned to capitalize on its strategic location and growing investments in data infrastructure.

Latest: IBM Launches First Quantum Data Center in Europe

Why Belgium?

Belgium stands at the crossroads of major data center hubs in Western Europe, specifically the FLAP—Frankfurt, London, Amsterdam, Paris, and Dublin—region. While these cities have traditionally dominated the data center market, they now face challenges like power grid congestion and increasing water consumption, limiting their growth. This has created a unique opportunity for Belgium, which is ideally situated at the center of these hubs and is becoming a favored alternative for data center development.

The Belgian data center market is currently witnessing an impressive compound annual growth rate (CAGR) of 18.5% slated to continue through 2028.

In 2024 alone, significant developments have occurred, including the opening of Ghelamco’s new data center, NEXUS, near Brussels and Google’s ambitious expansion plans, which include a EUR 1 billion investment for a new complex in Charleroi. Major players are also making their mark. Microsoft has invested EUR 1 billion in three Azure data centers around Brussels to strengthen its presence in the Belgian market.

Beyond Google and Microsoft, other key players contributing to Belgium’s data center sector include AtlasEdge and Digital Realty.

EdgeConneX and KEVLINX are also notable entrants in the Belgian market, emphasizing colocation services and connectivity. These investments are supporting Belgium’s transformation into a premier European data hub, benefiting sectors such as finance, healthcare, and e-commerce.

Also Read: Google Announces EUR 600 Million Investment Plan in New Dutch Data Center

Data Centers in Belgium

The Belgian data center market is segmented into four categories:

Hyperscalers: These are large-scale facilities tailored for major tech companies. Belgium is home to Google’s data center in Saint-Ghislain, which has been operational since 2010 and employs around 400 people. With plans for a second data center in Farciennes, Google is on track to invest EUR 5 billion across its facilities in Belgium. Microsoft is following suit with the establishment of three Azure data centers, further solidifying the nation’s role as a European tech hub.

Enterprise Data Centers: These facilities are owned by companies that house their IT equipment on site. Although around 2,000 Belgian entities, including hospitals and government departments, manage their own data infrastructure, many are increasingly opting for colocation services.

Colocation Data Centers: Colocation facilities provide shared data center space to various businesses. The COVID-19 pandemic and subsequent shift to remote work have accelerated demand in this segment. Belgium currently hosts about 50 colocation data centers, with plans for an additional 100 MW of capacity in the next five years. Leading players like LCL Data Centers is investing significantly to cater to this growing demand.

Micro Data Centers: Smaller facilities designed to serve a single tenant or a small number of tenants. A growing trend in this space is the use of mobile data centers, connected via 5G, to address temporary or on-demand connectivity needs.

Read More: Oslo Data Center Receives NOK 2.4 Billion Investment

The Ripple Effect

According to research conducted by GlobeNewswire, the Belgium data center market is projected to grow at a CAGR of 7.67% from 2023 to 2029. This growth is driven by diverse sectors such as finance, healthcare, and e-commerce, all of which require advanced data infrastructure. With over 65% of colocation centers built as Tier III facilities primarily located in Brussels, the demand for specialized services is clear.

Belgium’s commitment to renewable energy also presents an attractive proposition for data center operators, as government incentives support investments in sustainable energy solutions. The shift toward greener operations will help mitigate the environmental impact typically associated with large data centers.

Data center investments in Belgium are driving significant growth in multiple industries by enabling digital transformation. For example, the finance sector benefits from localized data processing, reducing latency for real-time transactions and improving cybersecurity by keeping sensitive data within Belgian borders. Additionally, the healthcare industry leverages data centers for telemedicine, storing and analyzing vast amounts of patient data, and facilitating AI-driven diagnostics. The Belgian Digital Infrastructure Association’s recent report—Belgian Digital Infrastructure Guide 2024—found that data center infrastructure supports innovations in e-health and personalized medicine, enhancing service quality and accessibility​.

Moreover, e-commerce and retail companies utilize data centers to improve customer experience through personalized recommendations and fast, reliable online services. In sectors like smart cities, the increased availability of real-time data—enabled by advanced data centers—facilitates efficient city planning, autonomous vehicles, and IoT-driven infrastructure.

The ripple effect of data center investments in Belgium is poised to transform the nation into a premier hub for data storage and management in Europe. With strategic investments, a supportive regulatory environment, and a focus on sustainability, Belgium is set to become a leader in the evolving digital landscape. As companies continue to recognize the value of reliable data infrastructure, the Belgian market is well-positioned for sustained growth, benefiting not only the tech sector but the economy as a whole.

Telecom Review Europe Newsletter

Subscribe to our newsletter!

Subscribe to our weekly newsletter and stay updated.

    terms & conditions

    Telecom Review Europe