DUBLIN, July 5, 2023 /PRNewswire/ — The “Nordic Data Center Construction Market – Industry Outlook & Forecast 2023-2028” report has been added to ResearchAndMarkets.com’s offering.
The Nordic data center construction market was valued at USD 1.68 billion in 2022 and is expected to reach USD 2.57 billion by 2028, growing at a CAGR of 7.33%
One of the reasons that operators prefer Nordics for data center developments is due to the cold climate of the regions, which helps data center operators cut down the cooling costs and reduce their PUE significantly. Many governments across the Nordics area are launching AI strategies for implementing AI in various sectors generating huge loads of data sets and driving the need for data center construction.
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 centers 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.
KEY TRENDS IN THE NORDICS DATA CENTER CONSTRUCTION MARKET
5G Deployments Fueling Data Center Investments
Nordic countries are deploying 5G rapidly, driving investments in data centers, especially edge data centers.
In July 2022, Eltel and Telenor Norway signed an agreement for USD 36-40 million for 2023-2024 for upgrading and strengthening the telecommunication network of Telenor 5G in Denmark.
Telenor and Tele2 combined to form a joint venture known as Net4Mobility which expects to cover 90% Swedish population with 5G by the end of the year 2023 and 100% by 2024.
Iceland is showing tremendous signs of 5G progression. Siminn, an Icelandic network operator, has targets for nationwide 5G coverage by the end of 2022.
Increasing Cloud Services Adoption
Nordic companies mainly opt for a hybrid cloud approach by enjoying public and private cloud benefits such as enhanced security. Companies across Nordics are shifting their workloads to the cloud to strengthen their digitalization goals and enjoy cloud advantages.
For instance, a Swedish bank migrated its services to the AWS cloud to analyze customer behavior and make data-driven decisions effectively. Hyperscale cloud services providers such as AWS, Google, Microsoft, Oracle, and Meta are increasing their service capabilities for supporting businesses.
Rising Awareness of Carbon-Neutrality
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.
Tax Incentives Boosting Data Center Construction
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.
COMPETITIVE ANALYSIS
Some major Nordic data center construction market vendors include companies Arup, Caverion, Cowi, Designer Group, RED, and Granlund Group.
These vendors are collaborating with operators to provide reliable construction solutions. For instance, Keysource provided its planning, engineering, and construction services to Namsos Datasenter (NDS) for edge data center construction.
Vendors focus on regions with lower land and labor costs while ensuring the data center construction specifications are followed.
There is an immense focus on reducing the data center’s energy consumption and carbon emission levels to improve their green credentials.
KEY QUESTIONS ANSWERED
- How big is the Nordic data center construction market?
- What is the growth rate of the Nordic data center construction market?
- What is the estimated market size in terms of area in the Nordic data center construction market by 2028?
- What factors drive the Nordic data center construction market growth?
- How many MW of power capacity is expected to reach the Nordic data center construction market by 2028?
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
- Meta
- Microsoft
Key Topics Covered:
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
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
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
13.5 Colocation Data Centers
13.6 Enterprise Data Centers
14 Infrastructure
14.1 Market Snapshot & Growth Engine
14.2 Electrical Infrastructure
14.3 Mechanical Infrastructure
14.4 General Construction
15 Electrical Infrastructure
15.1 Market Snapshot & Growth Engine
15.2 Ups Systems
15.3 Generators
15.4 Transfer Switches & Switchgear
15.5 Power Distribution Units
16 Mechanical Infrastructure
16.1 Market Snapshot & Growth Engine
16.2 Cooling Systems
16.3 Racks
17 Cooling Systems
17.1 Market Snapshot & Growth Engine
17.2 Crac & Crah Units
17.3 Chiller Units
17.4 Cooling Towers, Condensers & Dry Coolers
17.5 Economizers & Evaporative Coolers
18 Cooling Technique
18.1 Market Snapshot & Growth Engine
18.2 Air-Based Cooling Techniques
18.3 Liquid-Based Cooling Techniques
19 General Construction
19.1 Market Snapshot & Growth Engine
19.2 Core & Shell Development
19.3 Installation & Commissioning Services
19.4 Engineering & Building Design
19.5 Fire Detection & Suppression
19.6 Physical Security
19.7 Dcim/Bms Solutions
20 Tier Standards
20.1 Market Snapshot & Growth Engine
20.2 Overview of Tier Standards
20.3 Tier I & II
20.4 Tier III
20.5 Tier IV
21 Geography
21.1 Investment: Market Snapshot & Growth Engine
21.2 Area: Market Snapshot & Growth Engine
21.3 Power Capacity: Market Snapshot & Growth Engine
For more information about this report visit https://www.researchandmarkets.com/r/j25949
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