Nordic Data Center Construction Market to Reach $2.57 Billion in 2028, The Market to Observe Huge Investments From atNorth, AQ Compute, Hetzner Online & Green Mountain - Arizton

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May 02, 2023, 12:30 ET

CHICAGO, May 2, 2023 /PRNewswire/ -- According to Arizton's latest research report, the Nordic data center construction market will grow at a CAGR of 7.33% during 2022-2028.

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Browse In-Depth TOC on the Nordic Data Center Construction Market 

28 - Tables         
99 - Charts         
295 – Pages  

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.

Nordic Data Center Construction Market Report Scope

Report Attributes	Details
Market Size (2028)	USD 2.57 Billion
Market Size (2022)	USD 1.68 Billion
CAGR by Revenue (2022-2028)	7.33 %
Market Size - Area (2028)	1.47 Million Square Feet
Power Capacity (2028)	296 MW
Base Year	2022
Forecast Year	2023-2028
Market Segmentation	Facility, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Technique, General Construction, Tier Standards, and Geography
Geographic Analysis	Denmark, Sweden, Norway, and Finland & Iceland

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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.

In Nordics, renewable energy sources such as wind, geothermal, and hydro are abundant. Operators are aligning their goals with the carbon-neutral goals of the respective countries. For instance, Green Mountain, a colocation operator, uses 100% of renewable energy in its data center operations.

Denmark is setting up energy islands to harness the resources in the Baltics and will be the first in the world. They will have the capacity to not only supply Denmark but also supply neighboring countries. Also, Nordic Governments are releasing policies relating to sustainability and energy reuse. For instance, the Swedish Government released energy policies such as the Electricity Certificate System to ensure energy is used through renewable energy sources such as solar, wind, hydro, or geothermal. Various countries are providing tax incentives for investors based locally or even globally, which will aid in constructing data centers. The Government of Denmark launched a Green Tax Reform and green R&D, which falls under the Danish Recovery and Resilience Plan, for which a USD 250 million investment is planned. Further, Norway has an abundance of hydropower supply; therefore, the government provides favorable and flexible tax rates on the consumed electricity to the industries which are energy intensive.

Investments Overview

Danish digital competitiveness ranked 4th among 64 countries in 2022, according to the IMD World Digital Competitiveness Ranking. The Danish Information and Communications Technology (ICT) industry is valued at around $35 billion. It is highly developed and focuses mainly on software services and development.
The Digital Growth Strategy, 2025 of Denmark aims to contribute toward the digital transformation of the whole country. This is done by collaborating with sectors and industries such as social partners and trading associations.
Copenhagen is a major destination for data center development as it hosts major ICT companies and has a strong start-up ecosystem.
Sweden is one of the industrially advanced countries in the Nordics. The data centers being developed currently are well aligned with long-term sustainability goals. Sweden is very favorable for data center development due to low taxes on green investments and low power costs. The country stands at the forefront of excellence in technology, stability, and sustainability driving immense data center investments.
Stockholm is a major contributor to data center investments as more than half of the internet traffic of the Nordics flows through it. It is one of the largest markets for colocation in the Nordics, having more than 125 network providers and a population of 350 million in the vicinity of its data centers.

The report includes the investment in the following areas:

Facility

Hyperscale Data Centers
Enterprise Data Centers
Colocation Data Centers

Infrastructure

Electrical Infrastructure
Mechanical Infrastructure
General Construction

Electrical Infrastructure

UPS Systems
Generators
Transfer Switches & Switchgear
PDUs
Other Electrical Infrastructure

Mechanical Infrastructure

Cooling Systems
Racks
Other Mechanical Infrastructure

Cooling Systems

CRAC and CRAH Units
Chillers Units
Cooling Towers, Condensers, and Dry Coolers
Economizers & Evaporative Coolers
Other Cooling Units

Cooling Techniques

Air-based Cooling
Liquid-based Cooling

General Construction

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

Tier Standard

Tier I & Tier II
Tier III
Tier IV

Geography

Denmark
Sweden
Norway
Finland & Iceland

Major Vendors

Prominent Support Infrastructure

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

Prominent Construction Contractors

Arup
Coromatic
Caverion
COWI
Designer Group
RED
Dornan
EXYTE (M+W GROUP)
Gottlieb Paludan Architects
Granlund Group
MT Hojgaard
Mace Group
ISG
Sweco
Mercury
Ramboll Group
YIT

Prominent Data Center Investors

Apple
AQ Compute
atNorth
Bahnhof
DigiPlex (IPI Partners)
Digital Realty
EcoDataCenter
Equinix
Green Mountain
Hyperco
Verne Global
Google
Meta
Microsoft

Check Out Some of the Top-Selling Research Reports:

Western Europe Data Center Construction Market - Industry Outlook & Forecast 2023-2028: The Western Europe data center construction market to reach USD 10.61 billion by 2028. High adoption of artificial intelligence, increasing adoption of district heating systems, data centers adopting sustainability, and innovation in data center technologies drive the Western Europe data center construction market growth.

Central & Eastern Europe Data Center Construction Market - Industry Outlook & Forecast 2023-2028: The Central and Eastern Europe data center construction market to reach USD 1.05 billion by 2028. The growing popularity of IoT, the emergence of 5G networks, the adoption of cloud-based services, and the demand for streaming online entertainment content at high speeds are the major factors driving the data center market growth in Central & Eastern Europe.

Europe Data Center Colocation Market - Industry Outlook & Forecast 2022-2027: The Europe data center colocation market is estimated to reach USD 11.75 billion by 2027. The market will see the continuous adoption of cloud services among SMEs, with the heightened interest shown towards the digital transformation of businesses by adopting solutions such as IoT, big data, and artificial intelligence, attracting more investments into the Europe data center colocation market.

Europe Data Center Power Market - Industry Outlook & Forecast 2022-2027: The Europe data center power market to reach USD 7.46 billion by 2027. The market expanded for several reasons, including increased digitalization due to the COVID-19 pandemic, increased cloud adoption, data localization laws, and government support for data center development. A major trend in the market currently is edge data center deployment. Many UPS system providers are innovating their product portfolios with announcements focused on edge power solutions.

Table of Content

1 RESEARCH METHODOLOGY

2 RESEARCH OBJECTIVES

3 RESEARCH PROCESS

4 SCOPE & COVERAGE

4.1 MARKET DEFINITION

4.2 BASE YEAR

4.3 SCOPE OF THE STUDY

4.3.1 MARKET SEGMENTATION BY FACILITY TYPE

4.3.2 MARKET SEGMENTATION BY INFRASTRUCTURE

4.3.3 MARKET SEGMENTATION BY ELECTRICAL INFRASTRUCTURE

4.3.4 MARKET SEGMENTATION BY MECHANICAL INFRASTRUCTURE

4.3.5 MARKET SEGMENTATION BY COOLING SYSTEM

4.3.6 MARKET SEGMENTATION BY COOLING TECHNIQUES

4.3.7 MARKET SEGMENTATION BY GENERAL CONSTRUCTION

4.3.8 MARKET SEGMENTATION BY TIER STANDARDS

4.3.9 MARKET SEGMENTATION BY GEOGRAPHY

5 REPORT ASSUMPTIONS & CAVEATS

5.1 KEY CAVEATS

5.2 CURRENCY CONVERSION

5.3 MARKET DERIVATION

6 MARKET AT A GLANCE

7 PREMIUM INSIGHTS

7.1 KEY MARKET HIGHLIGHTS

7.2 KEY TRENDS IN THE NORDICS DATA CENTER CONSTRUCTION MARKET

8 INTRODUCTION

8.1 MARKET OVERVIEW

8.2 DATA CENTER DESIGN CERTIFICATIONS

8.2.1 UPTIME INSTITUTE TIER STANDARDS

8.2.2 LEED CERTIFICATION

8.2.3 TIA 942 CERTIFICATION

9 MARKET OPPORTUNITIES & TRENDS

9.1 5G DEPLOYMENTS FUELING DATA CENTER INVESTMENTS

9.2 DISTRICT HEATING GROWTH

9.3 INCREASING ADVANCES IN AI

9.4 GOVERNMENT SUPPORT/INITIATIVES FOR DATA CENTER CONSTRUCTION

9.5 INNOVATIONS IN DATA CENTER CONSTRUCTION

10 MARKET GROWTH ENABLERS

10.1 RISING AWARENESS OF CARBON NEUTRALITY

10.2 INCREASING CLOUD SERVICES ADOPTION

10.3 BIG DATA & IOT DRIVING DATA CENTER INVESTMENTS

10.4 USE OF FREE COOLING TO REDUCE PUE

11 MARKET RESTRAINTS

11.1 DEARTH OF SKILLED WORKFORCE

11.2 SECURITY ISSUES IMPACTING DATA CENTER DEVELOPMENTS

11.3 SUPPLY CHAIN ISSUES

12 MARKET LANDSCAPE

12.1 MARKET OVERVIEW

12.2 MARKET SIZE & FORECAST

12.3 AREA: MARKET SIZE & FORECAST

12.4 POWER CAPACITY: MARKET SIZE & FORECAST

12.5 FIVE FORCES ANALYSIS

12.5.1 THREAT OF NEW ENTRANTS

12.5.2 BARGAINING POWER OF SUPPLIERS

12.5.3 BARGAINING POWER OF BUYERS

12.5.4 THREAT OF SUBSTITUTES

12.5.5 COMPETITIVE RIVALRY

13 FACILITY TYPE

13.1 INVESTMENT: MARKET SNAPSHOT & GROWTH ENGINE

13.2 AREA: MARKET SNAPSHOT & GROWTH ENGINE

13.3 POWER CAPACITY: MARKET SNAPSHOT & GROWTH ENGINE

13.4 HYPERSCALE DATA CENTERS

13.4.1 MARKET OVERVIEW

13.4.2 INVESTMENT: MARKET SIZE & FORECAST

13.4.3 AREA: MARKET SIZE & FORECAST

13.4.4 POWER CAPACITY: MARKET SIZE & FORECAST

13.5 COLOCATION DATA CENTERS

13.5.1 MARKET OVERVIEW

13.5.2 INVESTMENT: MARKET SIZE & FORECAST

13.5.3 AREA: MARKET SIZE & FORECAST

13.5.4 POWER CAPACITY: MARKET SIZE & FORECAST

13.6 ENTERPRISE DATA CENTERS

13.6.1 MARKET OVERVIEW

13.6.2 INVESTMENT: MARKET SIZE & FORECAST

13.6.3 AREA: MARKET SIZE & FORECAST

13.6.4 POWER CAPACITY: MARKET SIZE & FORECAST

14 INFRASTRUCTURE

14.1 MARKET SNAPSHOT & GROWTH ENGINE

14.2 ELECTRICAL INFRASTRUCTURE

14.2.1 MARKET OVERVIEW

14.2.2 MARKET SIZE & FORECAST

14.3 MECHANICAL INFRASTRUCTURE

14.3.1 MARKET OVERVIEW

14.3.2 MARKET SIZE & FORECAST

14.4 GENERAL CONSTRUCTION

14.4.1 MARKET OVERVIEW

14.4.2 MARKET SIZE & FORECAST

15 ELECTRICAL INFRASTRUCTURE

15.1 MARKET SNAPSHOT & GROWTH ENGINE

15.2 UPS SYSTEMS

15.2.1 MARKET OVERVIEW

15.2.2 MARKET SIZE & FORECAST

15.3 GENERATORS

15.3.1 MARKET OVERVIEW

15.3.2 MARKET SIZE & FORECAST

15.4 TRANSFER SWITCHES & SWITCHGEAR

15.4.1 MARKET OVERVIEW

15.4.2 MARKET SIZE & FORECAST

15.5 POWER DISTRIBUTION UNITS

15.5.1 MARKET OVERVIEW

15.5.2 MARKET SIZE & FORECAST

15.6 OTHER ELECTRICAL INFRASTRUCTURE

15.6.1 MARKET OVERVIEW

15.6.2 MARKET SIZE & FORECAST

16 MECHANICAL INFRASTRUCTURE

16.1 MARKET SNAPSHOT & GROWTH ENGINE

16.2 COOLING SYSTEMS

16.2.1 MARKET OVERVIEW

16.2.2 MARKET SIZE & FORECAST

16.3 RACKS

16.3.1 MARKET OVERVIEW

16.3.2 MARKET SIZE & FORECAST

16.4 OTHER MECHANICAL INFRASTRUCTURE

16.4.1 MARKET OVERVIEW

16.4.2 MARKET SIZE & FORECAST

17 COOLING SYSTEMS

17.1 MARKET SNAPSHOT & GROWTH ENGINE

17.2 CRAC & CRAH UNITS

17.2.1 MARKET OVERVIEW

17.2.2 MARKET SIZE & FORECAST

17.3 CHILLER UNITS

17.3.1 MARKET OVERVIEW

17.3.2 MARKET SIZE & FORECAST

17.4 COOLING TOWERS, CONDENSERS & DRY COOLERS

17.4.1 MARKET OVERVIEW

17.4.2 MARKET SIZE & FORECAST

17.5 ECONOMIZERS & EVAPORATIVE COOLERS

17.5.1 MARKET OVERVIEW

17.5.2 MARKET SIZE & FORECAST

17.6 OTHER COOLING UNITS

17.6.1 MARKET OVERVIEW

17.6.2 MARKET SIZE & FORECAST

18 COOLING TECHNIQUE

18.1 MARKET SNAPSHOT & GROWTH ENGINE

18.2 AIR-BASED COOLING TECHNIQUES

18.2.1 MARKET OVERVIEW

18.2.2 MARKET SIZE & FORECAST

18.3 LIQUID-BASED COOLING TECHNIQUES

18.3.1 MARKET OVERVIEW

18.3.2 MARKET SIZE & FORECAST

19 GENERAL CONSTRUCTION

19.1 MARKET SNAPSHOT & GROWTH ENGINE

19.2 CORE & SHELL DEVELOPMENT

19.2.1 MARKET OVERVIEW

19.2.2 MARKET SIZE & FORECAST

19.3 INSTALLATION & COMMISSIONING SERVICES

19.3.1 MARKET OVERVIEW

19.3.2 MARKET SIZE & FORECAST

19.4 ENGINEERING & BUILDING DESIGN

19.4.1 MARKET OVERVIEW

19.4.2 MARKET SIZE & FORECAST

19.5 FIRE DETECTION & SUPPRESSION

19.5.1 MARKET OVERVIEW

19.5.2 MARKET SIZE & FORECAST

19.6 PHYSICAL SECURITY

19.6.1 MARKET OVERVIEW

19.6.2 MARKET SIZE & FORECAST

19.7 DCIM/BMS SOLUTIONS

19.7.1 MARKET OVERVIEW

19.7.2 MARKET SIZE & FORECAST

20 TIER STANDARDS

20.1 MARKET SNAPSHOT & GROWTH ENGINE

20.2 OVERVIEW OF TIER STANDARDS

20.3 TIER I & II

20.3.1 MARKET OVERVIEW

20.3.2 MARKET SIZE & FORECAST

20.4 TIER III

20.4.1 MARKET OVERVIEW

20.4.2 MARKET SIZE & FORECAST

20.5 TIER IV

20.5.1 MARKET OVERVIEW

20.5.2 MARKET SIZE & FORECAST

21 GEOGRAPHY

21.1 INVESTMENT: MARKET SNAPSHOT & GROWTH ENGINE

21.2 AREA: MARKET SNAPSHOT & GROWTH ENGINE

21.3 POWER CAPACITY: MARKET SNAPSHOT & GROWTH ENGINE

22 DENMARK

22.1 MARKET SNAPSHOT

22.1.1 MARKET OVERVIEW

22.2 INVESTMENT: MARKET SIZE & FORECAST

22.3 AREA: MARKET SIZE & FORECAST

22.4 POWER CAPACITY: MARKET SIZE & FORECAST

22.5 SUPPORT INFRASTRUCTURE: MARKET SIZE & FORECAST

23 SWEDEN

23.1 MARKET SNAPSHOT

23.1.1 MARKET OVERVIEW

23.2 INVESTMENT: MARKET SIZE & FORECAST

23.3 AREA: MARKET SIZE & FORECAST

23.4 POWER CAPACITY: MARKET SIZE & FORECAST

23.5 SUPPORT INFRASTRUCTURE: MARKET SIZE & FORECAST

24 NORWAY

24.1 MARKET SNAPSHOT

24.1.1 MARKET OVERVIEW

24.2 INVESTMENT: MARKET SIZE & FORECAST

24.3 AREA: MARKET SIZE & FORECAST

24.4 POWER CAPACITY: MARKET SIZE & FORECAST

24.5 SUPPORT INFRASTRUCTURE: MARKET SIZE & FORECAST

25 FINLAND & ICELAND

25.1 MARKET SNAPSHOT

25.1.1 MARKET OVERVIEW

25.2 INVESTMENT: MARKET SIZE & FORECAST

25.3 AREA: MARKET SIZE & FORECAST

25.4 POWER CAPACITY: MARKET SIZE & FORECAST

25.5 SUPPORT INFRASTRUCTURE: MARKET SIZE & FORECAST

26 COMPETITIVE LANDSCAPE

26.1 ELECTRICAL INFRASTRUCTURE

26.2 MECHANICAL INFRASTRUCTURE

26.3 GENERAL CONSTRUCTION

26.1 DATA CENTER INVESTORS

30 REPORT SUMMARY

30.1 KEY TAKEAWAYS

31 QUANTITATIVE SUMMARY

32 APPENDIX

32.1 ABBREVIATIONS

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