Iceland Data Center Market - Investment Analysis & Growth Opportunities 2023-2028

INDUSTRY INSIGHTS

The Iceland data center market size will witness investments of USD 543 million by 2028, growing at a CAGR of 12.63% during the forecast period. Iceland's commitment to sustainability and its strategic location between North America and Europe positions it for continued growth and substantial investment within the global data center industry. Moreover, the Iceland data center market has emerged as a significant player, driven mainly by its advantageous environmental factors and the availability of abundant renewable energy sources. The region has a small, open economy with about 390,000 people. In 2022, its GDP was around USD 28 billion, showing a 2.1% growth compared to 2021.

The Iceland data center market is witnessing growth in connectivity with submarine cables, connecting major locations worldwide. Some existing submarine cables connecting the country include CANTAT-3, DANICE, FARICE-1, Greenland Connect, and IRIS, connecting the country with Germany, Denmark, the UK, the Faroe Islands, and others. Further, Nova, Advania, Vodafone, Mila, Gagnaveita Reykjavíkur, Opin Kerfi, Sensa, ISNIC, Cloudflare, and NORDUnet are some of the telecom operators in Iceland that operate internet exchange points across the country.

KEY HIGHLIGHTS

• Iceland secures 4th for digital innovation in the European Commission’s eGovernment Benchmark 2022.
• In terms of 5G network deployment, Mila, Siminn, Vodafone, Ciena, Ericsson, and Nova are some of the telecom operators involved in deploying the 5G services across the region.
• Reykjavik is the primary hub in the Iceland data center market, with most existing third-party data centers. Other cities such as Keflavik, Akureyri, and Blönduós are the emerging data center locations.
• Iceland has ambitious targets for its future energy, which aims to reduce the use of fossil fuels by 2050 and achieve carbon neutrality by 2040.
• Iceland's membership in the European Free Trade Association (EFTA) and the European Economic Area (EEA) allows it to participate in the European Single Market, facilitating the free movement of capital, labor, goods, and services with the EU. Iceland also maintains regulatory stability by adopting EU legislation for matters related to the single market.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Iceland colocation market revenue.
• An assessment of the data center investment in Iceland by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Iceland data center market landscape, an in-depth industry analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Iceland
  • Facilities Covered (Existing): 07
  • Facilities Identified (Upcoming): 01
  • Coverage: 2 Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Iceland
  • Market Revenue & Forecast (2022-2028)
  • Retail Colocation Pricing
• The Iceland data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• In the Iceland data center market, some of the key investors are atNorth, Borealis Data Centres, and Verne Global.
• In June 2023, atnorth announced the launch of their data center facility, ICE03, located in Akureyri in the north of Iceland.
• Due to the mergers & acquisitions, the operators are increasing their capacities. For instance, Ficolo, a data center firm and expert in hybrid cloud infrastructure based in Finland, merged with Verne Global to satisfy the data center demand in the country.
• With abundant renewable energy in the country, operators in the Iceland data center market are adopting green energy to achieve sustainability goals. For instance, in July 2023, atNorth entered into a Power Purchase Agreement (PPA) of a five-year deal with Landsvirkjun for energy supply to a new facility in Iceland.
• Iceland has mild winters and cold summers most of the year in the country. Most data centers in Iceland support free cooling with economical operations and cool their servers with free air cooling systems.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Reykjavik
  • Other Cities
• List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Iceland data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • 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
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • DCIM
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV

VENDOR LANDSCAPE

• IT Infrastructure Providers: Broadcom, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, Hitachi Vantara, IBM, Lenovo NetApp.
• Data Center Construction Contractors & Sub-Contractors:
• Support Infrastructure Providers: Alfa Laval, Carrier, Eaton, Legrand, Schneider Electric, Socomec, Stulz, Vertiv.
• Data Center Investors: Borealis Data Center, atnorth, and Verne Global.