Nordic Data Center Colocation Market - Industry Outlook & Forecast 2024-2029

Nordic Data Center Colocation Market - Industry Outlook & Forecast 2024-2029

The Nordic data center colocation market by investment is expected to grow at a CAGR of 11.42% from 2023 to 2029.

KEY HIGHLIGHTS

• In the Nordic region, data centers are a reliable source of eco-friendly electricity and a climate that naturally lowers the requirement for costly cooling systems.
• Data center operators are placing more value on the sustainability benefits offered by the Nordics. In addition, as high-performance computing (HPC) becomes prevalent, the abundant electricity supply in many parts of the region will be crucial for meeting the significant power needs of future data centers.
• Facilities in the Nordic data center colocation market seek ways to reduce power expenses. Companies like atNorth and Borealis are testing a platform created by a local start-up called Snerpa Power. This platform aims to assist businesses in predicting their electricity usage and enables them to automatically make bids in the market to aid grid operators in balancing supply and demand.
• As high-performance computing (HPC) becomes common and the demand for data applications keeps growing, companies must explore data storage options beyond the usual places.

KEY MARKET TRENDS

Sustainable Initiatives

The Nordic countries are committed to becoming carbon-neutral, striving to be the most sustainable and interconnected region globally. Further, collaboration to ensure reliable, cost-effective, and eco-friendly energy is essential for reaching this goal. Among these nations – Sweden, Norway, Finland, and Denmark – there's a growing adoption of solar PV technology following a recent increase in installations. Norway, ranked seventh globally for hydropower and the largest in Europe, has a remarkable hydropower system.

Adoption of Artificial Intelligence (AI)

The Nordic countries are increasingly committed to adopting AI. As the overall trend of AI usage continues to grow, companies in these nations are increasing their investments in AI development. Governments across the Nordic region are also taking action to incorporate AI into their operations. For instance, in October 2023, the Norwegian Ministry of Defence introduced a strategy to integrate AI to enhance Norway's security and defense policies.

SEGMENTATION INSIGHTS

The Nordic data center colocation market consists of three main parts: electrical infrastructure, mechanical infrastructure, and general construction. These parts are closely connected and rely on each other. Thanks to the cool weather in the region, most facilities utilize free cooling systems instead of investing in advanced cooling technology. However, some underground facilities, like Verne Global's, still use liquid cooling. Reliable power backup facilities such as UPS systems and generators are essential to keep these centers operational. In addition, ensuring physical security and fire safety is crucial for smooth day-to-day operations, protecting against external threats and internal risks.

The report includes the investment in the following areas:

Segmentation by Colocation Services

• Retail Colocation
• Wholesale Colocation

Segmentation by Support Infrastructure

• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• PDUs
• Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Segmentation by Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers & Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Segmentation by Cooling Techniques

• Air-based Cooling
• Liquid-based Cooling

Segmentation by General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Fire Detection & Suppression
• Physical Security
• DCIM/BMS Solutions

Segmentation by Tier Standards

• Tier I & II
• Tier III
• Tier IV

GEOGRAPHICAL ANALYSIS

Facilities in the Nordic data center colocation market are expanding rapidly, driven by the region's abundant, low-cost renewable energy and natural cooling capabilities. The climate and resources in the Nordics present great opportunities for data center operators to capitalize on these advantages, reducing costs and improving energy efficiency. Unlike other areas, the colder temperatures here allow for natural free cooling. However, global supply chain issues are causing frequent delays in obtaining necessary power and temperature installations, leading to difficulties meeting project deadlines. Nevertheless, Norway, Denmark, and Sweden are leading the way in driving developments across the Nordic region.

Segmentation by Nordic

• Denmark
• Norway
• Sweden
• Finland & Iceland

VENDOR LANDSCAPE

Many significant players, including Green Mountain, atNorth, Stack Infrastructure, DATAROOM, Verne Global, Equinix, and Digital Realty, are investing in the Nordic data center colocation market. In addition, newcomers such as Elementica, Hyperco, and Prime Data Center are making their mark in the Nordic data center colocation market. Major colocation operators from around the globe are expected to join in investing in the region. This growing investment in regional data centers will pave the way for even more future investments.

Prominent Data Center Investors

• atNorth
• Borealis Data Centers
• Bulk Infrastructure
• Conapto
• Digital Realty
• Green Mountain
• GlobalConnect
• Verne Global
• Evroc
• Equinix
• Prime Data Center
• EcoDataCenter
• AQ Compute
• Lefdal Mine Datacenter
• NDC-GARBE Data Centers Europe
• STACK Infrastructure

New Entrants

• Elementica
• Hyperco
• STORESPEED

KEY QUESTIONS ANSWERED:

1. What is the growth rate of the Nordic data center colocation market?

2. How big is the Nordic data center colocation market?

3. What is the estimated market size in terms of area in the Nordic data center colocation market by 2029?

4. What are the key trends in the Nordic data center colocation market?

5. How many MW of power capacity is expected to reach the Nordic data center colocation market by 2029?