Iceland Data Center Market - Investment Analysis & Growth Opportunities 2025-2030

ICELAND DATA CENTER MARKET SIZE

The Iceland data center market size was valued at USD 425 million in 2024 and is expected to reach USD 812 million by 2030, growing at a CAGR of 11.39% during the forecast period. In 2024, Iceland contributed around 10% to the total data center investment across the Nordic region. Data centers account for over 5% of Iceland’s GDP. The cold climatic conditions of the country enable the data centers in the country to be 100% powered by renewable energy.

The government of the country is committed to sustainability by using techniques like district heating, free cooling, and the circular economy. It aims to achieve net-zero carbon emissions by 2040 through the growth of green energy. Furthermore, Iceland’s electricity is powered by a sustainable mix of geothermal (30%) and hydroelectric energy (70%), minimizing carbon footprints while keeping costs low. Due to the abundance of natural cooling capacity, the Iceland data center market boasts a lower power usage effectiveness (PUE) number than the global average.

The country is also strengthening its subsea cable infrastructure to ensure low latency in the network. The government has introduced multiple digital policy frameworks, including - Artificial Intelligence Action Plan (2024–2026), the National Cybersecurity Strategy (2022–2037), the Data Protection Act, and the Cloud Policy (2022). Furthermore, Reykjavik is the main hub for investments in the Iceland data center market, while other cities, such as Keflavik, Blönduós, and Akureyri, are emerging as new locations.

KEY HIGHLIGHTS

1. The Iceland data center market growth is driven by several factors, including the presence of bitcoin miners, high power reliability, the presence of green energy, suitable climatic conditions, high internet and social media penetration, strong inland and submarine cable connectivity, and a strong regulatory framework.
2. Reykjavik is the data center destination in the country. The city is marked by a concentrated growth in advanced facilities, hyperscale data centers, and dedicated cloud regions. As of January 2025, the industrial price of land in Reykjavik, Iceland, ranged between $4,500–$7,000 per sq m. Furthermore, Akureyri & Northern Iceland region also have a lower entry price than Reykjavik, along with a quality infrastructure.
3. As a European Economic Area (EEA) member, Iceland provides tariff-free access to the EU market, paired with World Trade Organization (WTO) membership, 50+ double tax treaties, and trade agreements. It offers a reduced corporate tax rate as compared to Organisation for Economic Co-operation and Development (OECD) countries, which plays a significant role in attracting investments in the Iceland data center market.
4. According to a report by the Ministry and Statistics Iceland, effective adoption of AI in Iceland could add between USD 1.42 billion and USD 11.83 billion to the economy of Iceland by 2029, depending on how quickly and widely AI is used.
5. Data center operators in Iceland consistently achieve low PUE ratios, between 1.1 and 1.2, far below the global average (1.57), showcasing top-tier energy efficiency.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment area, power capacity, and the Iceland colocation market revenue.
2. Data center investments in the area (square feet) and power capacity (MW) across cities in the country.
3. A detailed study of the existing Iceland data center market landscape, an in-depth market analysis, and insightful predictions about the Iceland data center market size during the forecast period.
4. Snapshot of existing and upcoming third-party data center facilities in Iceland
5. Facilities Covered (Existing): 08
6. Facilities Identified (Upcoming): 02
7. Coverage: 4+ Locations
8. Existing vs. Upcoming (Data Center Area)
9. Existing vs. Upcoming (IT Load Capacity)
10. Data center colocation market in Iceland
11. Colocation Market Revenue & Forecast (2021-2030)
12. The Iceland data center landscape market investments are classified into IT, power, cooling, and general construction services, with sizing and forecast.
13. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
14. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
15. A transparent research methodology and the analysis of the demand and supply aspects of the industry.

ICELAND DATA CENTER MARKET VENDOR LANDSCAPE

1. In the current landscape of colocation investors, several established companies play a significant role. Notable players in the Icelandic data center market include atNorth, Borealis Data Center, and Verne.
2. atNorth and Borealis, utilize direct-air cooling at their facilities to bring down the temperature of their units.
3. As of 2025, there is no direct presence of major hyperscalers in the Icelandic data center market. However, growing investment, 100% renewable energy, excellent global connectivity, and favorable climate conditions position Iceland as a strong candidate for future hyperscale expansion.

EXISTING VS. UPCOMING DATA CENTERS

1. Existing Facilities in the region (Area and Power Capacity)
2. Reykjavik
3. Other Cities
4. List of Upcoming Facilities in the region (Area and Power Capacity)
5. Reykjavik
6. Other Cities

VENDOR LANDSCAPE

1. IT Infrastructure Providers: Broadcom, Cisco, Dell Technologies, Hewlett-Packard Enterprise, Huawei Technologies, Hitachi Vantara, IBM, Lenovo, and NetApp.
2. Data Center Construction Contractors & Sub-Contractors: AVH, Blikk & Taekni, COWI, Perago Bygg, Rafeyri, and Raftakn.
3. Support Infrastructure Providers: Alfa Laval, Carrier, Eaton, Legrand, Schneider Electric, Socomec, STULZ, and Vertiv.
4. Data Center Investors: atNorth, Borealis Data Center, and Verne.