The use of AI applications is rising in the Netherlands, data strategy is a priority for IT leaders

Digital Realty presents the findings from the "The State of Data and AI in Europe" report, part of the recently launched 2024 Global Data Insights Survey. The study, conducted among more than 2,000 IT leaders across Europe, reveals a significant increase in AI maturity within large organizations. A vast majority of European companies (85%) are implementing AI strategies, with 42% (39% in the Netherlands) already realizing financial benefits from these initiatives.

Vincent in ’t Veld, Managing Director at Digital Realty Netherlands

Despite significant progress, Digital Realty’s “The State of Data and AI in Europe” report highlights a crucial gap: while companies are making strides toward leveraging AI for financial gains, these efforts are not yet translating into transformative business success. Only 27% of respondents in Europe (23% in the Netherlands) consider their organization’s current use of AI to be groundbreaking. This underscores the need for greater investment in digital infrastructure to unlock AI’s full potential.

An increasing number of companies across Europe recognize the importance of having a clear data strategy. Two-thirds (65%) of European respondents view data strategies as essential for effectively managing data and executing successful AI initiatives. However, significant challenges remain.

The report reveals that many companies lack the necessary digital infrastructure to manage data and AI successfully. One of the primary hurdles is data storage: 57% of businesses in Europe (69% in the Netherlands) report insufficient storage capacity to execute their data strategies effectively. Additionally, 57% acknowledge that their IT infrastructure needs to be strategically positioned for successful data strategy implementation. The phenomenon of “Data Gravity”—where data accumulates in certain parts of the infrastructure—worsens these challenges. Data becomes harder to move due to factors like limited network bandwidth, application dependencies, and performance issues.

Challenges in the Netherlands

Dutch companies also face significant hurdles in deriving insights from data. Nearly half (49%) of respondents in the Netherlands cited a lack of internal expertise as the biggest obstacle to building technical capacity and analyzing data. The second major barrier is the absence of clear directives from management (47%), followed by the challenge of integrating data from different silos and departments (44%). These figures point to a need for a more strategic approach to data management, talent development, and clearer guidance from leadership to foster data-driven decision-making.

It’s crucial that data location aligns with an organization’s AI strategy. As AI becomes integrated into more aspects of business operations, more data is generated, requiring readily available, stable data for AI processing. Nearly three-quarters (72%) of respondents in Europe agree that prioritizing data location is essential to addressing challenges related to storage, processing, interconnectivity, compliance, and infrastructure suitability.

A shortage of computing power is an increasing concern as well. More than half (53%) of European companies (59% in the Netherlands) report insufficient computational resources to run AI processes as needed. Organizational barriers, such as a lack of management-level knowledge and insufficient support for data-driven AI strategies, further hinder progress.

Capturing AI’s Value

Business and IT leaders are adjusting budgets to manage growing data volumes and capitalize on AI’s competitive advantages. However, only 14% of companies (5% in the Netherlands) are currently using AI to create a competitive edge. This signals an urgent need for companies to revisit their data strategies to fully realize the value of AI investments.

Colin McLean, Chief Revenue Officer at Digital Realty, explains: “We’re witnessing a decisive shift towards using AI to deliver tangible organizational value. As seen in this survey, achieving this requires digital infrastructure capable of managing high data volumes, supporting AI workloads, and providing real-time intelligence. A well-crafted data strategy is essential for reaching AI maturity and real business outcomes. This strategy will likely include high density colocation and robust, on-demand, interconnection, as part of the digital infrastructure requirements.”

Vincent in ’t Veld, Managing Director at Digital Realty Netherlands, adds: “In the Netherlands, we are also witnessing rapid growth in data volumes, primarily driven by the increasing use of AI applications in business, which analyze and enrich data. A future-proof digital infrastructure—where data is stored, processed, and shared efficiently and securely—is the foundation of a successful AI strategy. It is up to companies to rethink and invest in their data strategies. Only then will they be able to harness AI’s full potential and gain a competitive advantage.”