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Nordic data center construction market to reach $2.57 bn in 2028

According to Arizton’s latest research report, the Nordic data center construction market will grow at a CAGR of 7.33% during 2022-2028.

In Europe, the Nordics region is preferable for data center development by some major hyperscale and colocation operators. Hyperscale operators such as Google, Microsoft, Apple, Meta (Facebook) Oracle, among others, opted to open their self-built cloud regions to support the high demand from regional and local customers. In cloud adoption, public and hybrid cloud environments are witnessing strong growth. The local enterprise has significantly adopted cloud-based services, IoT services, and big data analytics, which have boosted the local colocation demand in the market. The Nordics data center market received investments from local colocation operators such as atNorth, AQ Compute, and Hetzner Online. Government entities in Nordic countries are moving toward digitalization and are constructing data centers to support their digital transformation goals.

Key Insights

  • Denmark has topped the list amongst Nordic countries, investing more than USD 500 million in 2022. Sweden and Norway followed
  • Denmark in terms of high investments in 2022.
  • Operators are signing PPA with renewable energy providers to increase sustainability by decreasing their carbon footprint. For instance, Telia and Telenor signed a PPA with Better Energy for a solar park construction in Denmark.
  • There is increased growth in cloud regions set up by multiple hyperscale data center operators, such as Google, Microsoft, AWS, Oracle, and Meta.
  • There is an increase in initiatives being taken by various governments across the regions to make the respective countries carbon-neutral in the future. Operators are moving through more sustainable construction methods like wood and mycelium.
  • Supply chain disruptions, increasing inflation rates, shortage of skilled workforce, and political disturbances in Russia will likely hurt the market.

CT Bureau

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