This research report on the Nordic data center market covers sizing and forecast, share, industry trends, growth drivers, and vendor analysis. The 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 district heating concept is gaining popularity among facility 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 facilities in the Nordic region to the decrease in the electricity cost. Hydro and wind powers are the major renewable energy sources in the region. In 2018, over 90% of the established facilities 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 market.
The Nordic data center 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.
Insights by Electrical Infrastructure
The use of lithium-ion UPS systems will continue to grow among facility 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 facilities 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 is likely to decline during the forecast period as the popularity of carbon-neutral facilities is growing. Also, the grid supply stability in the region, especially in Denmark, is high, thereby reducing the adoption of generators systems.
With the increased construction of facilities, the market for transfer switches and switchgears is expected to grow during the forecast period. The growing data center rack density will increase the adoption of three-phase rack PDUs rather than single-phase PDUs during the forecast period.
Insights by Mechanical Infrastructure
To facilitate free cooling in data center facilities, 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. The Nordic data center 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 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.
Insights by Cooling Systems
The market for CRAC and CRAH units in the Nordic data center market is expected to grow steadily during the forecast period as several facilities 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 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 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.
Insights by General Construction
In the Nordic data center 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 region has a strong presence of infrastructure vendors, the dependency on engineering firms that operate at the regional or global level is high. The increase in the investment in hyperscale facilities 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 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 operations along with efficiency and resilience. The importance of physical security systems, along with relevant securities, is growing among service providers. 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.
Insights by Tier Standards
The Nordic data center 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. 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.
Insights by Geography
The adoption of cloud-based services in Denmark is growing significantly. Denmark is an ideal location 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 center facilities in Denmark is expected to lead the growth of intelligent and efficient power infrastructure solutions during the forecast period.
The availability of 100% renewable energy sources is helping Iceland to emerge as the most favorable location for development in the Nordic region. The increasing interest in cryptocurrency miners is leading to the development in Finland. The demand for hybrid infrastructure services and the establishment of the cloud data center by Microsoft is likely to boost the 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 a few of the major factors that attract new 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 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 market has a strong presence of vendors across all three categories: electrical infrastructure, mechanical infrastructure, and general construction. Hyperscale service providers 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 Infrastructure Providers
Other Prominent Investors
Key Market Insights Include
The report provides the following insights into the market for the forecast period 2019–2024.
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