This research report on the Nordic data center construction market covers market sizing and forecast, market share, industry trends, growth drivers, and vendor analysis. The market study includes insights on the segmentation by electrical infrastructure (UPS, generators, rack power distribution units, transfer switches & switchgears, and other), mechanical infrastructure (cooling systems, racks, and other mechanical infrastructure), cooling systems (CRAC & CRAH, chiller units, cooling towers & dry coolers, economizers& evaporative coolers, and other cooling units), cooling technique (air-based cooling technique and liquid-based cooling technique), general construction (building development, installation & commissioning services, building design, physical security, DCIM), tier standards (Tier I&II, Tier III, and Tier IV), and geography (Iceland, Sweden, Denmark, and Finland).
The availability of land and inexpensive clean electricity is expected to increase the construction of data centers in the Nordic region
The district heating concept is gaining popularity among data center operators and local governments in the Nordic region. This concept involves the distribution of the heat generated in a centralized data center location through a network of insulated pipes for domestic heating purposes. The facility operators are increasingly using the heat generated from servers to heat district homes during winters. Thus, the concept is likely to grow among the investors in the region during the forecast period. Stockholm Data Parks is likely to supply waste heat to several households in Stockholm.
Hyperscale operators and colocation providers are establishing data centers in the Nordic region to the decrease in the electricity cost. Hydro and wind powers are the major renewable energy sources in the Nordic region. In 2018, over 90% of the established facilities in the Nordic region were powered through renewable energy sources. Strong support from the local government and energy producers is a significant boost for the operators in the region. The operators are also procuring renewable energy. Norway is leading the race in terms of renewable energy capacity production, followed by Sweden and Finland.
The availability of land to develop data centers is an active driver for the growth of the Nordic data center construction market. For instance, Stockholm data center parks will bring significant investment to the country. In 2019, the mayor of Stockholm announced Brista (Stockholm Data Park) with an initial30 MW of renewable power capacity and heat recovery. Twenty locations are available for data center development. Aurland, Flaa, grue, Hamar, and Mo i Rana are some of the prime locations for data center development. The Nordic data center construction market is expected to grow at a CAGR of over 7% during the period 2018−2024.
This research report includes detailed market segmentation by electrical infrastructure, mechanical infrastructure, cooling systems, general construction, tier standards, and geography.
Nordic Data Center Construction Market: Electrical Infrastructure
The construction of carbon-neutral facilities is likely to decline the procurement of redundant generators in the Nordic data center construction market
The use of lithium-ion UPS systems will continue to grow among data center operators in the region as they help to reduce the OPEX through low maintenance cost. Vendors are continually coming up with innovative UPS solutions that increase efficiency and reduce cost. Large and mega datacenters in Nordic are likely to procure UPS systems of over 750 kVA, whereas small and medium facilities are installing UPS systems with less than 500 kVA capacity.
The adoption of generators in the Nordic data center construction market is likely to decline during the forecast period as the popularity of carbon-neutral facilities is growing. Also, the grid supply stability in the Nordic region, especially in Denmark, is high, thereby reducing the adoption of generators systems. However, the increase in the construction of energy-efficient and carbon-neutral data centers will hurt Nordic data center construction market growth.
With the increased construction of data centers, the market for transfer switches and switchgears is expected to grow during the forecast period. However, the use of switches will vary significantly based on factors such as capacity, cost, meantime between failures (MTBF), switching time, and designs.
The growing data center rack density will increase the adoption of three-phase rack PDUs rather than single-phase PDUs in the Nordic region during the forecast period.
Nordic Data Center Construction Market: Mechanical Infrastructure
The adoption of direct free cooling technique is aiding the market growth of other infrastructures namely, ductworks
To facilitate free cooling in data centers, the use of direct/indirect evaporative coolers and air/water-side economizers will continue to grow in the Nordic region. 42U rack units are the most commonly used in Nordic. The Nordic data center construction market is likely to witness the adoption of Open 19 rack architecture and related IT infrastructure designs. It is expected that 42U and 48U racks will be major revenue contributors to the Nordic data center construction market. Ductworks are the major revenue generators in the other mechanical infrastructure segment. The adoption of direct/in-direct free cooling technique is aiding the market growth of ductworks.
Nordic Data Center Construction Market: Cooling Systems
The availability of free cooling resources is projected to increase the growth of indirect evaporative cooling systems during the forecast period
The market for CRAC and CRAH units in the Nordic data center construction market is expected to grow steadily during the forecast period as several data centers are installing direct evaporative coolers, which do not use CRAC or CRAH systems. However, a majority of datacenters, which use water-based cooling technique, install multiple CRAC and CRAH units in data halls and containment designs.
The chiller market in the Nordic region is expected to be low due to the extensive use of free cooling systems. Further, the adoption of free cooling chillers with smart technology is growing as they enable operations based on outside temperatures and use limited water for cooling.
The abundance of free cooling resources in the Nordic region is expected to lead the growth of indirect evaporative cooling systems during the forecast period. Vendors are offering a variety of modern cooling systems that use cold air outside for cooling. The increasing rack power density has considerably decreased the use of air-cooled comfort cooling systems in data centers. Innovations in the free cooling space, especially in the use of outside air to cool data centers without any on-site water requirement, will continue to grow in the Nordic data center construction market during the forecast period. The adoption of chilled water systems is likely to decline over the next few years due to the availability of free cooling solutions.
Nordic Data Center Construction Market: General Construction
The increase in greenfield facilities will generate high revenue for installation and commission service providers in the Nordic region
In the Nordic data center construction market, processes such as site selection and preparation are carried out by local municipalities in partnership with energy producer, grid, and fiber operators. Although the Nordic region has a strong presence of infrastructure vendors, the dependency on engineering firms that operate at the regional or global level is high in the market. The increase in the investment in hyperscale facilities in the Nordic region is likely to generate the demand for local engineering expertise. Further, the increase in greenfield facilities will generate high revenue for installation and commission service providers in the Nordic region.
Colocation data center and managed service providers in the Nordic region are expected to comply with regulations and certifications. Designing a facility with prescribed rules provides high reliability, scalability, and flexibility in data center operations along with efficiency and resilience. The importance of physical security systems, along with relevant securities, is growing among service providers in the Nordic region. In the future, the data center market is likely to witness the increased use of robot monitoring systems in the facility with sensors and video surveillance. The DCIM market is expected to grow in the Nordic region due to the growing power consumption and increasing carbon emissions. To identify power consumption in data centers, infrastructure vendors, and pure-play DCIM providers are offering solutions that integrate infrastructure monitoring into a single software. The adoption of intelligent security solutions will continue to grow in Norway, with organizations planning to build facilities with EMP physical security protection.
Nordic Data Center Construction Market: Tier Standards
The development of hyperscale data centers will be a significant driver for the growth of Tier IV data centers in the region
The Nordic data center construction market by Tier I and Tier II is expected to decline during the forecast period. However, Tier III facilities are likely to grow during the forecast period in the Nordic region. Denmark and Norway have five and six facilities, respectively, which are certified by the Uptime Institute. Many operators are expected to move to the Tier IV category based on the growth in the rack power density and critical applications. Nordic countries are witnessing increased hyperscale investments from Google, Facebook, Microsoft, and AWS.
Nordic Data Center Construction Market: Geography
The introduction of tax incentives for data center infrastructure procurement by government agencies is a significant factor in driving market growth in Norway
The adoption of cloud-based services in Denmark is growing significantly. Denmark is an ideal location for data center operations because it has the closest proximity to other European countries and robust fiber connectivity inside the country. The increasing number of several submarine fiber cable projects from Denmark that connects with other European countries such as the UK, Germany, the Netherlands, France, and the US is growing. The increased construction of hyperscale data centers in Denmark is expected to lead the growth of intelligent and efficient power infrastructure solutions during the forecast period.
The Finland data center market has witnessed significant growth in the recent year. The adoption of PaaS and IaaS solutions is increasing in the country. The IoT market is also growing in the industry sectors such as healthcare and automotive in Finland. The demand for hybrid infrastructure services is likely to emerge as an active driver for the growth of the data center market.
The availability of 100% renewable energy sources is helping Iceland to emerge as the most favorable location for data center development in the Nordic region. Also, the continuous investment in submarine fiber cables projects, connecting Iceland to North America and Europe, is a significant driver for Nordic data center construction market growth. The increasing interest in cryptocurrency miners is leading to the development of data centers in Finland.
Increasing tax incentives on data center property and equipment by the Norwegian government is a significant factor for the data center development. Also, the government is strengthening the fiber connectivity inside and outside the country. The demand for hybrid infrastructure services and the establishment of the cloud data center by Microsoft is likely to boost the Nordic data center construction market. The installation of cloud services in the country is expected to reach over 80% by 2024.
Sweden has been witnessing significant data center investment. The availability of renewable energy and the presence of favorable climatic condition are few of the major factors that attract new data center investments in the country. Also, tax incentives from the Swedish government have a significant effect on market growth with many local and global data center providers increasing their investments in the country. The adoption of cloud-based services is also growing in the region, with over 60% of the enterprises using cloud-based applications for their business operations.
Key Countries Profiled:
Key Vendor Analysis
The Nordic data center construction market is witnessing steady growth, with the high adoption of efficient and modular infrastructure solutions. The market has evolved over the years with multiple innovations focused on reducing power and water consumption and decreasing carbon dioxide emissions.
Moreover, the Nordic data center construction market has a strong presence of vendors across all three categories: electrical infrastructure, mechanical infrastructure, and general construction. Hyperscale data centers are likely to adopt lithium-ion batteries, natural gas generators, and intelligent PDUs during the forecast period. Infrastructure vendors are expected to offer innovative products during the forecast period, especially those products that help to reduce power wastage and improve efficiency.
Prominent Construction Contractors
Prominent Infrastructure Providers
Other Prominent Construction Contractors
Other Prominent Construction Contractors
Other Prominent Construction Contractors
Key Market Insights Include
The report provides the following insights into the Nordic data center construction market for the forecast period 2019–2024.
Get the updated report free if published within 100 days of purchase
Free datasheet worth $1500 with team and corporate license.
10% free customization. Speak to our analyst