Press release
Nordic Data Center Market to Reach $10.21 Billion by 2027. Over $8 Billion of Cumulative Investments through Data Center Development by Hyperscale Operators in Next 5 Years – Arizton
Subheading: The Nordic data center market to reach USD 5.24 billion in 2021 and will reach USD 10.21 billion by 2027.According to Arizton latest report on the Nordic data center market is expected to grow at a CAGR of 11.76% during 2021−2027. Denmark data center market is leading with around 30% of total investments in the Nordics, followed by Sweden and Norway.
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KEY HIGHLIGHTS OFFERED IN THE REPORT:
• The Nordics is a preferred investment location for hyperscale, colocation, and cryptocurrency data centers, fueled by ample availability of renewable energy, large swatches of land for development, and government support for the development of data centers.
• Within the Nordics, Sweden, with over 35% of the overall capacity added in the market led market investments, followed by Finland and Denmark. Finland witnessed investments by Google, which announced the expansion of its Hamina data center facility.
• The Nordics market has also witnessed several acquisition transactions in 2021, which will further enable market growth. For instance, in July 2021, Green Mountain was acquired by Israel based Azrieli Group, and DigiPlex was acquired by IPI Partners.
• The adoption of district heating is encouraged by local governments and adopted by data center operators in the Nordics. For instance, the government of Norway will offer incentives such as USD 0.005 per KW/h in electricity tax for data centers contributing to district heating in Norway.
• Various local data center associations also exist in Nordic countries, that formulate policies and support data center development. For instance, Denmark has The Danish Data Center Association (DDI) representing the data center ecosystem in Denmark, including operators, vendors, municipalities, educational institutions, and utility companies.
• Norway is the leading country in renewable energy capacity production, followed by Sweden and Finland. The European Union Renewable Energy Directive has set certain renewable energy targets, as a percentage of total energy consumed in the Nordics, set at 30% for Denmark, 38% for Finland, 72% for Iceland, 67.5% for Norway, and 49% for Sweden.
KEY OFFERINGS:
• Market Size & Forecast by Investment | 2021−2027
• Market Size & Forecast by Power Capacity (MW) | 2021−2027
• Market Size & Forecast by Area (Sq. Ft) | 2021−2027
• Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
• Market Segmentation – A detailed analysis by infrastructure, IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling systems, cooling technique, general construction, tier standard, facility, and geography
• Competitive Landscape – 12 IT infrastructure providers, 17 support infrastructure providers, 17 construction contractors, and 13 data center investors
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NORDIC DATA CENTER MARKET – KEY INVESTMENTS
• In June 2021, the Solor Bioenergy Group announced the acquisition of the district heating business from Veolia Nordic in Norway and Sweden.
• District heating is widely used in Finland & Iceland as it covers around 50% of buildings, houses. In February 2021, VTT launched a district heating plant technology is called Low-Temperature District Heating and Desalination Rector in Finland.
• Sweden also offers regional investments and employment grants for data centers, depending on the investment amount and full-time jobs offered. For instance, Stockholm Data Parks will bring significant investments to the country.
• In September 2021, Huawei Technologies launched an Indirect Evaporative Cooling solution, an innovative solution to upgrade Air Handling Units (AHU) to Environment Handling Units (EHU), to reduce the Power Usage Effectiveness (PUE) and carbon emission of the data center.
• In January 2020, Norway launched its National Strategy on AI to offer investments in AI research & education, establish financial aid schemes for AI, and frame rules & principles on ethical adoption of AI in the country.
Nordic Data Center Market – Segmentation
Market Segmentation by Infrastructure
• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction
Market Segmentation by IT Infrastructure
• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure
Market Segmentation by Electrical Infrastructure
• UPS Systems
• Generators
• Transfer Switches & Switchgear
• Power Distribution Units
• Other Electrical Infrastructure
Market Segmentation by Mechanical Infrastructure
• Cooling Systems
• Racks
• Other Mechanical Infrastructure
Market Segmentation by Cooling Systems
• CRAC & CRAH Units
• Chiller Units
• Cooling Towers
• Condensers & Dry Coolers
• Evaporative Coolers
• Other Cooling Units
Market Segmentation by Cooling Technique
• Air-Based Cooling Technique
• Liquid-Based Cooling Technique
Market Segmentation by General Construction
• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Physical Security
• Fire Detection & Suppression
• DCIM/BMS
Market Segmentation by Tier Standard
• Tier I & II
• Tier III
• Tier IV
Market Segmentation by Facility
• Hyperscale Data Centers
• Enterprise Data Centers
• Colocation Data Centers
Market Segmentation by Geography
• Sweden
• Finland
• Denmark
• Norway
• Iceland
NORDIC DATA CENTER MARKET – COMPETITOR LANDSCAPE
In terms of IT infrastructure, there were various hyperscalers such as Google, Microsoft, Apple, and Facebook investing in the region in 2021. These cloud service providers are the major adopters of high-density, mission-critical servers, storage infrastructure, and network infrastructure. Various IT infrastructure vendors present in the region include Arista Networks, Broadcom, Cisco Systems. Hewlett Packard Enterprise, and Dell Technologies. Server demand has grown over the last year due to the higher infrastructure deployment for big data analytics workloads. The demand for converged and hyper converged solutions also experienced strong growth in the market. Various infrastructure providers are involved in customizing IT infrastructure for data center operators. OCP as a platform also helps vendors according to their needs.
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Prominent IT Infrastructure Providers
• Arista Networks
• Atos
• Broadcom
• Cisco Systems
• Dell Technologies
• Hewlett Packard Enterprise (HPE)
• Huawei Technologies
• IBM
• Juniper Networks
• Lenovo
• NetApp
• Oracle
Prominent Support Infrastructure Providers
• ABB
• Alfa Laval
• Carrier
• Caterpillar
• Cummins
• Eaton
• HITEC Power Protection
• Legrand
• NetNordic
• Reillo Elettronica
• Rittal
• Rolls-Royce Power Systems
• Schneider Electric
• Socomec
• STULZ
• Trane Technologies
• Vertiv Group
Prominent Construction Contractors
• Arup Group
• Coromatic
• Caverion
• COWI
• Designer Group
• RED
• Dornan
• Exyte
• Gottlieb Paludan Architects
• Granlund Group
• MT Hojgaard
• Mace Group
• ISG
• Sweco
• Mercury
• Ramboll Group
• YIT
Prominent Data Center Investments
• Apple
• AQ Compute
• atNorth
• Bahnhof
• DigiPlex
• Digital Realty
• EcoDataCenter
• Equinix
• Green Mountain
• Microsoft
Explore our data center knowledge base profile to know more about the industry.
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ABOUT ARIZTON:
Arizton Advisory and Intelligence is an innovation and quality-driven firm that offers cutting-edge research solutions to clients worldwide. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare, and life sciences, industrial machinery, chemicals and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.
Arizton comprises a team of exuberant and well-experienced analysts who have mastered in generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.
Arizton Advisory and Intelligence
Call: +1-312-235-2040
+1 302 469 0707
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