Nordic Data Center Construction Market Industry Outlook & Forecast 2024-2029: A $3.18 Billion Market by 2029, with ABB, Alfa Laval, Carrier, Caterpillar and Cummins Dominating

Dublin, June 10, 2024 (GLOBE NEWSWIRE) -- The "Nordic Data Center Construction Market - Industry Outlook & Forecast 2024-2029" report has been added to's offering.

The Nordic Data Center Construction Market was valued at USD 1.88 billion in 2023, and is expected to reach USD 3.18 billion by 2029, rising at a CAGR of 9.16%.

ABB, Alfa Laval, Carrier, Caterpillar, and Cummins are the key players in the Nordic data center construction market. ABB offers comprehensive solutions, including automation, while Alfa Laval specializes in cooling. Carrier provides innovative cooling and heating solutions, Caterpillar offers integrated power systems, and Cummins focuses on power generation and monitoring. Their combined expertise ensures reliable and efficient data center operations.

Arup, Coromatic (E.ON), Caverion, Cowi, and Designer Group are prominent Nordic data center construction contractors. Arup contributed around USD 360 million of construction services to Equinix data centers across Europe, prioritizing sustainability and safety in the post-COVID-19 era.


The Surge in 5G Connectivity in Edge Data Center Investments

  • The swift adoption of 5G technology has led to a surge in data generation, driving increased investments in edge data centers. Edge computing, facilitated by seamless 5G connectivity, distributes computing resources closer to data sources, reducing the burden on centralized data centers. Notably, the low latency and increased capacity of 5G technology enables efficient data processing, fostering the development of smart cities and connected infrastructure.
  • Denmark boasts a robust 99.3% 5G coverage, showcasing impressive connectivity speeds and low latency. Initiatives, including the 5G award program, demonstrate a commitment to technological advancements, which catalyze the increased construction of edge data centers.
  • Norway's progress in 5G deployment, reaching 82% household coverage, reflects a transformative impact on local networks, fostering innovations and sustainable growth in the telecom industry. Norway is poised for continued expansion in edge data center constructions owing to the fact that Norwegian operators are testing their own 5G networks and carrying out initiatives such as shutting down copper networks in favor of fiber optics.
  • Sweden's leadership in global mobile download speeds and ambitious 5G innovation programs has solidified its position as a 5G adopter. The extensive 5G network coverage and innovative services create a conducive environment for the rising construction of edge data centers. Collaborations between telecom companies and technology providers, such as Telia's partnership with Ericsson, aim to accelerate 5G adoption and industry transformation, enhancing Sweden's international competitiveness.
  • These developments underscore the relationship between 5G technology and edge computing, setting the stage for accelerated growth and the construction of edge data centers in the Nordic data center construction market.

Awareness of Carbon Neutrality

  • Denmark, relying on renewable sources for 75% of its power needs, showcases its commitment through initiatives such as Prime Denmark's sustainable expansion using 100% renewable energy and biofuel backup generators (implemented as of July 2023).
  • Norway attracts international clients with its high proportion of renewable energy; for instance, in January 2023, ByteDance partnered with Green Mountain to build a data center that operates exclusively on renewable energy.
  • In November 2022, Volkswagen AG collaborated with Green Mountain, a CO?-neutral data center operator in Norway, to achieve net carbon neutrality by 2027. Similarly, in January 2023, ByteDance decided to achieve carbon-neutral operations by 2030, leading to collaborations with Green Mountain for a data center in Norway.
  • Initiatives, such as the atNorth Power Purchase Agreement (PPA) in Iceland, signed in July 2023, and Google's cloud region in Norway, powered entirely by renewable energy and launched in November 2022, highlight investments in renewable energy infrastructure; this is contributing to a more resilient and sustainable data center landscape in the Nordic data center construction market.

High Adoption of Artificial Intelligence (AI)

  • AI National Strategies and Innovation Ecosystems (2019-2021): Countries including Sweden, Denmark, and Norway have developed national strategies to promote AI innovation and growth. The AI market in Sweden is projected to exceed USD 10 billion by 2030, while Denmark focuses on responsible AI leadership and fostering innovation-friendly environments. Norway's AI National Strategy, launched in January 2020, aims to strengthen industries, such as energy and healthcare, with AI technologies; this strategy is supported by initiatives such as the Norwegian Open Artificial Intelligence Lab (NAIL).
  • The increasing demand for AI, big data analytics, and cloud computing drives the Nordic data center construction market. For instance, Sweden and Finland actively promote themselves as data center hotspots, offering incentives such as tax breaks and expedited permitting processes. Additionally, in June 2022, Linkoping University in Sweden announced its plan to host the Arrhenius supercomputer, reflecting the region's commitment to advancing data center infrastructure.
  • Collaborations between industry players and the government and thriving start-up ecosystems further accelerate the Nordic region's AI growth. In June 2022, Denmark's Nyt Hospital Nordsjalland (NHN) project utilized AI to save costs. AI startups, such as Veo, Corti, and Huddly, are leveraging AI solutions to address the various industry challenges across the region.

Growth in the District Heating Systems

  • Nordic countries, including Sweden, Norway, and Denmark, mandate heat reuse by data centers, promoting sustainability. For example, in 2022, Stack Infrastructure connected its Oslo data center to district heating, benefiting 5,000 homes. Furthermore, the 2023 expansion of Conapto in Stockholm led to using renewable energy and district heating. On the other hand, Prime is planning a sustainable campus in Denmark.
  • In 2023, Johnson Controls acquired Hybrid Energy AS in Norway; in 2022, Elisa collaborated with Helen in Finland to utilize waste heat produced by data centers. These partnerships and initiatives highlight the industry's efforts to augment district heating and repurpose waste heat to benefit communities.
  • Hyperco's expansion in Finland in 2022 and Green Mountain's plans in Norway in the same year signify continued growth. Both projects integrated waste-heat re-usage, supporting the local district heating networks and sustainability goals.


  • The emergence of microgrids and on-site power generation systems has led to increased energy storage and sustainable energy, thereby leading to increased savings and improved resiliency. The surge in carbon emissions is a major challenge for data centers. Fuel cells are being installed to improve the efficiency of data centers and overcome the challenges associated with carbon emissions. Fuel cells can support significant energy loads for reliability, safety, stability, and reduced costs.
  • Adopting Uninterruptible Power Supply (UPS) systems is a key driver, particularly in the Nordic data centers, where lithium-ion batteries are gaining traction for backup power.
  • The European market for UPS systems, dominated by key providers, favors systems with capacities ranging from 500 kVA to 1,000 kVA. Smart-grid UPS systems, featuring smaller footprints and high efficiency, are becoming prevalent and aligning with the rising adoption of renewable energy.
  • Diesel Rotary Uninterruptible Power Supply (DRUPS) systems are gaining popularity in the generator market, driven by their combination of battery and flywheel UPS topology.
  • The integration of intelligent controls addresses maintenance challenges. Hydrogen Vegetable Oil (HVO) is emerging as a sustainable biofuel option that contributes to carbon reduction.
  • As the data center landscape evolves, the integration of edge data centers influences UPS procurement, especially with capacities below 500 kVA. Monitored and intelligent/switched PDUs gain traction in Europe for end-to-end power monitoring.
  • The abundant renewable power sources, particularly wind power and favorable colder climates, position the Nordic countries as ideal for extensive free cooling. These nations offer at least 4,000 hours of annual free cooling, fostering increased methods such as air/water-side economizers and indirect evaporative coolers.
  • Modern data centers are increasingly aligning their constructions with industry standards. The ASHRAE data center cooling guidelines and Uptime Institute's Tier standards are becoming integral.


  • Sweden maintained a steady increase in data center area; the country is estimated to reach 312 thousand square feet in 2029 and account for a power capacity expansion from 51 MW in 2023 to 69 MW in 2029. Sweden is attracting global players, such as Amazon Web Services (AWS), Google, and Microsoft Azure, as the country accounts for favorable incentives for businesses and strategic investments, including the Digital Transformation Infrastructure Plan. Stockholm dominates as an investment destination, with emerging markets poised for growth, including Ostersund and Avesta.
  • Denmark holds a significant position in the Nordic data center construction market, with a steady increase in area and power capacity and the surging of investments to USD 530 million in 2023; this highlights the commitment to infrastructure expansion. The Denmark data center construction market has surged recently, attracting major tech players, including Facebook, Google, and Apple. The country's access to renewable energy, exemplified by projects like the Havfrue submarine cable, has bolstered its reputation as a top-tier digital hub. Aligning with its 2020-2030 digital industry plan, Denmark aims to become a leading Nordic and pan-European data center hub, integrating centers into the district heating system and promoting energy efficiency.
  • Norway experienced significant investment growth, reaching USD 620 million in 2023, and recording the expansion initiatives in area and power capacity to accommodate the rising data demands. Initiatives, including the data center strategy and enhanced data protection laws, bolster industry growth, attracting cloud service providers such as IBM, Amazon Web Services (AWS), Google, and Microsoft Azure.

Key Attributes:

Report AttributeDetails
No. of Pages326
Forecast Period2023 - 2029
Estimated Market Value (USD) in 2023$1.88 Billion
Forecasted Market Value (USD) by 2029$3.18 Billion
Compound Annual Growth Rate9.1%
Regions CoveredDenmark, Finland, Iceland, Norway, Sweden


Key Data Center Support Infrastructure Providers

  • ABB
  • Alfa Laval
  • Carrier
  • Caterpillar
  • Cummins
  • Eaton
  • HITEC Power Protection
  • Legrand
  • NetNordic
  • Reillo Elettronica (Riello UPS)
  • Rittal
  • Rolls-Royce Power Systems
  • Schneider Electric
  • Socomec
  • Trane Technologies (Ingersoll Rand)
  • Vertiv

Prominent Construction Contractors

  • Arup
  • Coromatic (E.ON)
  • Caverion
  • COWI
  • Designer Group
  • Ethos Engineering
  • RED
  • Dornan
  • Gottlieb Paludan Architects
  • Granlund Group
  • MT Hojgaard
  • Mace Group
  • ISG
  • Sweco
  • Mercury
  • Ramboll Group
  • YIT

Prominent Data Center Investors

  • Apple
  • AQ Compute
  • atNorth (Partners Group)
  • Bahnhof
  • DigiPlex (IPI Partners)
  • Digital Realty
  • EcoDataCenter
  • Equinix
  • Green Mountain
  • Hyperco
  • Lefdal Mine Datacenter
  • Orange Business Services
  • STACK Infrastructure
  • Verne Global
  • Google
  • Meta (Facebook)
  • Microsoft

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Nordic Data Center Construction Market

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