Sweden Data Center Market - Investment Analysis & Growth Opportunities 2026-2031
Sweden Data Center Market Size & Share Outlook, Trends & Growth Analysis Report (2026-2031)
SWEDEN DATA CENTER MARKET OUTLOOK
| MARKET SIZE (INVESTMENT) | USD 5.91 Billion (2031) |
| MARKET SIZE (AREA) | 418 Thousand Sq. feet (2031) |
| MARKET SIZE (POWER CAPACITY) | 110 MW (2031) |
| CAGR - INVESTMENT (2025-2031) | 8.34% |
| COLOCATION MARKET SIZE (REVENUE) | USD 1.10 Billion (2031) |
| HISTORIC YEAR | 2022-2024 |
| BASE YEAR | 2025 |
| FORECAST YEAR | 2026-2031 |
| MAJOR PLAYERS | Arista NetworksAtosBroadcomCiscoDell TechnologiesHPEHuawei TechnologiesIBM |
SWEDEN DATA CENTER MARKET ANALYSIS
The Sweden data center market size was valued at USD 3.65 billion in 2025 and is expected to reach USD 5.91 billion by 2031, growing at a CAGR of 8.34% during the forecast period. Sweden holds a significant position in the Nordic data center market, supported by its strategic geographic location, robust digital infrastructure, reliable power availability, and supportive government initiatives.
As of December 2025, Sweden hosted around 24 operational submarine cables, including Aurora, Baltic Sea Submarine Cable, BCS East-West Interlink, Botnia, Denmark-Sweden 17, Eastern Light Sweden-Finland I, Energinet Laeso-Varberg, Oskarshamn-Visby, Scandinavian Ring North, Sweden-Latvia, and STO-HEL-One, among others. The country is also investing in around four additional submarine cable projects, expected to become operational by 2028. These developments are strengthening Sweden’s international connectivity and supporting the expansion of data center infrastructure.
The Swedish government continues to support inland and rural network connectivity through initiatives such as the National Broadband Expansion Program, Broadband Subsidy Funding, and the Digital Connectivity Strategy and Policy. For instance, in 2025, the Swedish Post and Telecom Authority (PTS) allocated approximately USD 76.6 million in broadband subsidies to support inland and rural connectivity projects. Such initiatives are expected to improve high-speed connectivity and create a favorable environment for data center development across the country.
Demand for cloud adoption in Sweden continues to increase year over year, driven by the ongoing digital transformation of businesses, private services, and government operations. Growing adoption of cloud computing, data-intensive applications, and digital services is driving demand for scalable, reliable data center infrastructure nationwide.
SWEDEN DATA CENTER MARKET INVESTMENT BY AREA
The Sweden data center market by area is projected to reach approximately 418 thousand sq. ft. by 2031, supported by the country’s expanding industrial and commercial infrastructure. The development of Free Trade Zones (FTZs) and Export Processing Zones (EPZs), particularly in key industrial hubs such as Gothenburg and Malmö, is further strengthening Sweden’s business ecosystem. The country currently has around four FTZs, including Stockholm Free Zone, Gothenburg Free Zone, Malmö Free Zone, and Jönköping Free Zone, enhancing its position as an attractive destination for businesses and supporting the continued development of data center infrastructure across the Nordic and European markets.
SWEDEN DATA CENTER MARKET INVESTMENT BY POWER CAPACITY
The Sweden data center market by power capacity is projected to reach approximately 110 MW by 2031, driven by the development of energy-intensive hyperscale and specialized data center facilities. In line with this expansion, Blykalla, an advanced nuclear technology developer, Evroc, a hyperscale cloud and data center company, and Studsvik, a nuclear services provider, signed an MoU to explore the development of a data center at Studsvik’s licensed nuclear site in Nyköping, Sweden. The proposed project highlights the growing focus on securing reliable and sustainable power sources to support Sweden’s expanding data center infrastructure.
Key Report Takeaways
- IT Infrastructure - The server infrastructure segment held the leading position in the Sweden data center market in 2025, accounting for approximately 47% of the total market.
- Electrical Infrastructure - The UPS segment emerged as the dominant component of the Sweden data center electrical infrastructure market in 2025.
- Mechanical Infrastructure - The cooling systems segment accounted for the largest share of the Sweden data center mechanical infrastructure market in 2025.
- General Construction - The core & shell development segment held the largest share of the Sweden data center general construction market in 2025.
- Tier Standard - Tier III facilities represented the largest share of the Sweden data center market by tier standard in 2025.
- Colocation - Retail colocation is the dominant segment of the Sweden data center market.
Note: Market size and forecast figures are generated using Arizton's proprietary estimation framework, based on facility-level primary and secondary research, updated as of the current reporting cycle.
Sweden Existing & Upcoming Data Center Portfolio
EXISTING FACILITY DATA POINTS
- Location — region, city, full address
- Operator / owner name & facility name
- Core & shell white-floor area
- Core & shell IT load capacity
- Rack Capacity
- Tier standard (I–IV) & redundancy design
- Year of operations
UPCOMING FACILITY DATA POINTS
- Investor name & location
- Planned area & power capacity (MW)
- Total investment (USD Million)
- Electrical / mechanical / construction investment split
- Announcement year & project status
- Expected year of opening
- Retail & wholesale colocation pricing
SWEDEN DATA CENTER MARKET TRENDS AND DRIVERS
TRENDS
Inclusion of Sustainable and Green Practices in Data Centers
Sweden plans to achieve net-zero emissions by 2045 and has made significant progress in generating electricity from renewable sources, including hydropower, wind, solar, and bioenergy. The country also aims to generate 100% of its electricity from renewable energy sources by 2040. This strong focus on renewable energy is also reflected in the data center industry, with operators increasingly adopting sustainable power solutions. For instance, Equinix operates three data centers in Sweden, all located in Stockholm, and these facilities are powered by 100% renewable energy. Such initiatives highlight Sweden’s favorable environment for developing energy-efficient and sustainable data center infrastructure.
Rise in AI and Digitalization Trends
The demand for AI and digitalization in Sweden is increasing, driven by technological advances, changing consumer preferences, and the growing need for businesses to improve operational efficiency. This rapid digital transformation is supported by the country’s high level of internet connectivity and widespread adoption of digital services. By the end of 2025, Sweden had achieved an internet penetration rate of over 98.3%, with more than 10.7 million internet users. This high level of connectivity, supported by government initiatives, technological advancements, and the increasing adoption of digital solutions across sectors such as education, healthcare, and commerce, is further contributing to the growth of Sweden’s digital ecosystem and data center infrastructure.
RESTRAINTS
Business Ownership Hurdles and Dearth of Skilled Personnel
The Swedish data center industry is experiencing strong demand for skilled professionals, driven by the rapid expansion of digital infrastructure and the increasing adoption of advanced technologies. However, the industry continues to face challenges in meeting its workforce requirements, particularly in specialized areas such as cloud computing, cybersecurity, artificial intelligence, and data center operations. The shortage of qualified personnel is further intensified by limited access to specialized training and education programs, low awareness of data center career opportunities, and intense competition for technology talent from other industries. Addressing these workforce gaps will be essential to support the continued expansion and technological development of Sweden’s data center market.
Location Constraints
Sweden’s cold climate provides favorable conditions for data center operations by enabling the use of free-air cooling, which can help reduce cooling requirements and overall energy consumption. However, the availability of suitable land remains a key challenge, particularly in major urban centers such as Stockholm, Gothenburg, and Malmö, where land is limited and relatively expensive. This can increase site acquisition costs and make it challenging to develop large-scale data center facilities in strategic locations. In contrast, rural and remote areas offer greater land availability and potentially lower costs but often have less-developed grid connectivity and fiber infrastructure. These infrastructure limitations can affect the scalability, network performance, and deployment of latency-sensitive data center services.
SWEDEN DATA CENTER MARKET DRIVERS
Adoption of Cloud-based Services
Sweden has emerged as a key destination for data center investments in 2025, supported by the rapid adoption of cloud services across the country. Swedish enterprises are increasingly transitioning from on-premises infrastructure to cloud platforms to benefit from enhanced scalability, flexibility, and cost efficiency. The rising demand for cloud-based solutions has attracted leading cloud service providers such as AWS, Google, Microsoft, and Oracle Cloud, which continue to invest in Sweden to expand their cloud infrastructure and strengthen their presence in the market.
Increase in Submarine Cables and Inland Connectivity
Submarine cables play a critical role in supporting global internet connectivity, and Sweden has emerged as an important regional hub due to its extensive international cable connections. The country is connected to several key markets across the Nordic and European regions, enabling reliable and high-capacity data transmission. In addition, Sweden has a well-developed terrestrial fiber network that strengthens connectivity between major cities and regions. The combination of submarine cable infrastructure and robust terrestrial networks supports efficient data transfer, low-latency connectivity, and reliable digital services, creating a favorable environment for the expansion of data centers and cloud-based infrastructure across the country.
SEGMENT ANALYSIS
IT INFRASTRUCTURE
Based on IT infrastructure, the server segment held the largest share of the Sweden data center market, accounting for approximately 47% in 2025. This dominance is supported by the rapid digitization of the country and the strong demand for cloud-based services, with the IT and telecom industries leading cloud computing adoption and significant momentum also emerging across manufacturing, healthcare, and government agencies. The growing reliance on cloud platforms is driving demand for scalable and application-specific data center infrastructure. In particular, hyperscale data center operators are increasingly investing in facilities designed to support specialized workloads, which is expected to boost the adoption of ODM servers. Manufactured by Original Design Manufacturers, ODM servers offer greater flexibility and customization, making them well suited for application-specific data center deployments and supporting the continued growth of the server segment in Sweden.
ELECTRICAL INFRASTRUCTURE
Based on electrical infrastructure, the UPS segment accounted for the largest share of the Sweden data center market, driven by the increasing need for reliable and continuous power supply. Data center facilities across the country commonly implement at least N+1 redundancy in power and backup systems to ensure high availability and reduce the risk of downtime. For example, Digital Realty’s ST02 campus features two independent power feeds for all equipment, with each feed supported by dedicated UPS systems and backup generators under an N+1 redundancy configuration. The adoption of such resilient power infrastructure underscores the critical role of UPS systems in maintaining operational reliability and business continuity across Sweden’s data center facilities.
MECHANICAL INFRASTRUCTURE
Based on mechanical infrastructure, the cooling systems segment held the largest share of the Sweden data center market, reflecting the critical role of thermal management in maintaining the performance and reliability of IT infrastructure. These systems are installed to dissipate the heat generated by IT equipment and maintain optimal operating temperatures within data center facilities. Cooling systems typically use air- or water-based cooling methods, with commonly deployed infrastructure including CRACs, CRAHs, chillers, cooling towers, condensers, dry coolers, economizers, and evaporative coolers. In addition, advanced solutions such as direct-to-chip cooling, liquid immersion cooling, pumped refrigerant heat exchangers, and other cooling accessories are increasingly being adopted to address the thermal requirements of high-density computing environments.
GENERAL CONSTRUCTION
Core & shell development was the largest segment within the general infrastructure category of the Sweden data center market in 2025, reflecting the significant investment required to establish the physical foundation and building structure of data center facilities. This segment includes the costs associated with developing data center buildings, irrespective of their size or location. It covers various construction activities, including lift installation, sanitary fittings, disposal systems, water installations, and site preparation. It also encompasses core & shell components such as substructures, frames, upper floors, roofs, stairs, external walls, windows and doors, and internal partitions.
TIER STANDARD
Tier III facilities represented the largest share of the Sweden data center market by tier standard in 2025, supported by their high availability and robust redundancy capabilities. Tier III data centers offer comprehensive redundancy, enabling improved operational reliability and minimizing the risk of service disruptions. These facilities typically implement N+1 redundancy, ensuring that an additional component can take over in the event of a single component failure or during planned maintenance. In addition, Tier III facilities can be reconfigured to support up to 2N+1 redundancy when required, supported by flexible data center designs that enable operators to enhance resilience and accommodate changing infrastructure requirements.
COLOCATION
Retail colocation remains the leading segment in the Sweden data center market, driven by the presence of established domestic and international colocation providers. In 2025, the segment recorded higher capacity and market share than wholesale colocation, supported by increasing demand across a broad range of industries. Key sectors such as entertainment and media, tourism, education, healthcare, oil and gas, and retail are contributing significantly to the growing adoption of retail colocation services in Sweden.
GEOGRAPHY ANALYSIS
Stockholm
Other Cities
COMPETITIVE LANDSCAPE
The Sweden data center market has the presence of several major colocation data center operators, including atNorth, Equinix, Bahnhof, Conapto, Digital Realty, EcoDataCenter, GleSYS, Kolo DC, and Vaultica Data Centers.
In Sweden, we observe that some existing data center operators have expanded their data centers across the country; such operators are EcoDataCenter, Bahnhof, GlobalConnect, and Conapto, among others.
Sweden data center market has the presence of several major cloud operators, which include Amazon Web Services (AWS), Google, Microsoft, Meta, and Oracle Cloud.
The Sweden data center market has the presence of several major IT infrastructure vendors, including Arista Networks, Broadcom, Cisco, IBM, Lenovo, and NVIDIA, among others.
In December 2025, Singularity Compute announced that it had launched a GPU cluster in Sweden at a Conapto data center, offering bare-metal and VM GPU rentals covering Nvidia L40Ss, H200s, and B200s, for AI and high-performance workloads.
The Sweden center market has the presence of global as well as local data center construction contractors & sub-contractors, such as AFEC, Bravida, Collen Construction, COWI, DPR Construction, KeyPlants, Kirby Group Engineering, Winthrop Technologies, among others.
In Sweden, Winthrop Technologies is constructing a 40 MW greenfield data center for a global hyperscale client.
Sweden Data Center Industry Leaders
Disclaimer: Major players sorted in no particular order.
VENDOR LANDSCAPE
- IT INFRASTRUCTURE PROVIDERS - Arista Networks, Atos, Broadcom, Cisco, Dell Technologies, HPE, Huawei Technologies, IBM, Lenovo, NetApp, and NVIDIA.
- DATA CENTER CONSTRUCTION CONTRACTORS & SUB-CONTRACTORS - AFEC, Bravida, ByggPartner, Collen Construction, Coromatic AB, COWI, Dornan, DPR Construction, Granlund, Jones Engineering, KeyPlants, Kirby Group Engineering, Linesight, NCC, RED Engineering Design, RKD, Skanska, Sweco, and Winthrop Technologies.
- SUPPORT INFRASTRUCTURE PROVIDERS - ABB, Alfa Laval, Carrier, Caterpillar, Cummins, Eaton, FlaktGroup, HITEC Power Protection, Kohler, Legrand, NetNordic, Riello UPS, Rittal, Rolls-Royce, Schneider Electric, Socomec Group, STULZ, Swegon, and Vertiv.
- DATA CENTER INVESTORS - AWS, atNorth, Bahnhof, Conapto, Digital Realty, EcoDataCenter, Equinix, Glesys, GlobalConnect, Google, Kolo DC, Meta, Microsoft, and Vaultica Data Centers
- NEW ENTRANTS - Brookfield and Evroc
RECENT INDUSTRY DEVELOPMENTS
SWEDEN DATA CENTER COLOCATION MARKET
View Colocation Report →TABLE OF CONTENTS FOR SWEDEN DATA CENTER INDUSTRY REPORT
SWEDEN DATA CENTER MARKET REPORT SCOPE
IT Infrastructure
- Servers
- Storage Systems
- Network Infrastructure
Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgears
- PDUs
- Other Electrical Infrastructure
Mechanical Infrastructure
- Cooling Systems
- Rack Cabinets
- Other Mechanical Infrastructure
Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers & Dry Coolers
- Other Cooling Units
General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression Systems
- Physical Security
- Data Center Infrastructure Management (DCIM)
Tier Standard
- Tier I & Tier II
- Tier III
- Tier IV
MARKET DEFINITION
| Term | Definition |
|---|---|
| PUE | Power Usage Effectiveness — total facility energy divided by IT equipment energy; values closer to 1.0 indicate higher efficiency. |
| Redundancy (N, N+1, 2N) | Design standards describing backup capacity for power and cooling components, ranging from no redundancy (N) to fully duplicated systems (2N). |
| CRAC / CRAH | Computer Room Air Conditioner / Air Handler — equipment used to regulate temperature and humidity in the server environment. |
| Hot Aisle / Cold Aisle | Rack layout convention that separates cool air intake from hot air exhaust to improve cooling efficiency. |
| Colocation (Retail / Wholesale) | Retail colocation serves capacity needs under roughly 250 kW; wholesale colocation serves capacity needs between 250 kW and 4 MW. |
RESEARCH METHODOLOGY
Identify Key Variables
Variables and factors are tested against historical facility-level market data through an iterative process.
Build a Market Model
Market-size estimations are built in nominal terms with a consistent average selling price across the forecast period.
Validate & Finalize
Market numbers and analyst calls are validated through an extensive primary research network across levels and functions.
Research Outputs
Syndicated reports, custom consulting assignments, and facility-level databases.
Facility-level depth
Existing and upcoming facilities tracked across Sweden.
Exclusive research
80% of Arizton reports are exclusive and first-to-market.
Trusted by leaders
200+ Fortune 500 companies rely on Arizton research.
24x7 availability
Continuous analyst and post-sale support.
Free customization
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KEY QUESTIONS ANSWERED IN THE REPORT
How much MW of power capacity will be added across Sweden during 2026-2031?
How big is the Sweden data center market?
Which all geographies are included in Sweden data center market report?
What factors are driving the Sweden data center market?
Last Refreshed on : October 2026
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