The Iceland Data Center Market Size, Share, Trends, & Investments By IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, General Construction, & Tier Standard.

Iceland Data Center Market – Investment Analysis & Growth Opportunities 2026-2031

ICELAND DATA CENTER MARKET SIZE & OUTLOOK

The Iceland data center market size was valued at USD 449 million in 2025 and is expected to reach USD 769 million by 2031, growing at a CAGR of 9.38% during the forecast period. Iceland’s data center market is driven by factors such as the growing adoption of digital platforms, advanced technologies such as AI, the digital economy, increasing internet users & data traffic, government initiatives, and the rising growth in mobile and social media users which are expected to significantly enhance data traffic and demand for data centers.

The data center market in Iceland is a fast-growing niche market within the Nordic digital infrastructure ecosystem, driven primarily by sustainable energy availability and favorable climatic conditions. With a market value projected to reach around $770 million by 2031, Iceland is positioning itself as a global hub for energy-efficient computing and HPC workloads.

The Icelandic data center industry has undergone a structural transformation, shifting from cryptocurrency mining toward AI-driven workloads and high-performance computing. A notable example is Borealis, which replaced tens of millions of dollars of bitcoin mining servers with advanced AI computing systems.

As a member of the European Economic Area (EEA), Iceland offers tariff-free access to EU markets. Combined with WTO membership, more than 50 double taxation treaties and multiple trade agreements, the country provides a favorable international trade environment. To further attract investment, Iceland offers a reduced corporate tax rate of 20%, down from 21% in 2025.

ICELAND DATA CENTER MARKET - KEY HIGHLIGHTS

1. Iceland’s political and economic stability, combined with its membership in the European Economic Area (EEA) and alignment with the GDPR, provides strong legal frameworks and data governance protections that are attractive to global enterprises.
2. Reykjavik is the top data center destination in the country. It remains Iceland’s leading hub for data center expansion, characterized by concentrated growth in advanced facilities, hyperscale data centers, and dedicated cloud regions.
3. As of 2025, the construction cost of data centers in Iceland ranges from $9 million to $11 million per MW. However, these costs are expected to increase annually due to various factors, including supply chain issues, inflation, and rising interest rates.
4. As of December 2025, Iceland hosted seven operational data centers, with established providers such as atNorth, Borealis Data Center and Verne Global maintaining a presence in the country.
5. Although Iceland’s total number of data centers remains modest compared to major hubs such as Sweden Denmark and Norway, its growth trajectory and strategic advantages are attracting global attention from operators looking for sustainable alternatives.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment, area, power capacity, and Iceland colocation market revenue.
2. An assessment of the data center investment in Iceland by colocation, hyperscale, and enterprise operators.
3. Data center investments in the area (square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing Iceland data center market landscape, an in-depth industry analysis, and insightful predictions about the Iceland data center market size during the forecast period.
5. Snapshot of existing and upcoming third-party data center facilities in Iceland
6. Facilities Covered (Existing): 07
7. Facilities Identified (Upcoming): 02
8. Coverage: 5 Cities
9. Existing vs. Upcoming (Data Center Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data center colocation market in Iceland
12. Colocation Market Revenue & Forecast (2022-2031)
13. Retail & Wholesale Colocation Revenue (2022-2031)
14. Retail & Wholesale Colocation Pricing
15. Iceland data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
16. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
17. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
18. A transparent research methodology and the analysis of the demand and supply aspect of the market.

ICELAND DATA CENTER MARKET VENDOR LANDSCAPE

1. The market is led by three major operators – atNorth, Verne Global, and Borealis Data Center.
2. In March 2024, a global investment firm, Ardian, acquired 100% of the data center platform, Verne Global, from Digital 9 Infrastructure plc. The deal had an equity value of approximately $575 million. This acquisition marks Ardian's entry into the data center infrastructure sector and aligns with its broader strategy to invest in digital infrastructure and sustainable computing platforms.
3. The entry of several other global and regional players will increase the competition in the market. In August 2025, GIGA-42 Holdings Limited signed a new memorandum of understating with Global InterConnection Group for the development of new 50MW data center in Bakki, Húsavík.

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

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, cooling systems, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

1. IT Infrastructure
2. Server Infrastructure
3. Storage Infrastructure
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Transfer Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack Cabinets
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC and CRAH Units
17. Chiller Units
18. Cooling Towers, Condensers and Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & commissioning Services
23. Building & Engineering Design
24. Fire Detection & Suppression Systems
25. Physical Security
26. Data Center Infrastructure Management (DCIM)
27. Tier Standard
28. Tier I & Tier II
29. Tier III
30. Tier IV

VENDOR LANDSCAPE

1. IT INFRASTRUCTURE PROVIDERS: Broadcom, Cisco, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, Hitachi Vantara, IBM, Lenovo, NetApp and NVIDIA.
2. DATA CENTER CONSTRUCTION CONTRACTORS & SUB-CONTRACTORS: COWI and Mannverk
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 Global (Ardian).
5. NEW ENTRANTS: GIGA-42