LONDON--(BUSINESS WIRE)--Technavio’s latest report on the data center construction market in the Nordic region provides an analysis of the most important trends expected to impact the market outlook from 2017-2021. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
The data center construction market in the Nordic region is expected to grow at a CAGR of 17% during the forecast period. The Nordic region is one of the fastest growing data center markets worldwide. Support from the government for both local and foreign direct investment (FDI), climatic conditions, less electricity cost, use of renewable energy sources, and power data centers are the major benefits that increase the investment in data centers in the region.
Rohan Joy Thomas, a lead analyst from Technavio, specializing in research on data center sector, says, “In the Nordic region, the governments have also identified suitable locations for the construction of data centers, which include reliable renewable power sources, free-cooling and sea-water cooling options, fiber connectivity to European countries and the US, and tax incentives.”
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The top three emerging trends driving the data center construction market in the Nordic region according to Technavio research analysts are:
- Adoption of energy-efficient infrastructure
- Increasing need for DCIM and automation
- Growing number of colocation providers
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Adoption of energy-efficient infrastructure
Data center vendors have witnessed many innovations over the past decade regarding the adoption of efficient infrastructure. The adoption of density-optimized servers and storage infrastructure is gaining traction. Hard disk drive (HDD) arrays are being replaced with solid state drive (SSD) arrays that reduce the amount of energy consumed by the infrastructure.
“Free-cooling and using sea water to cool data centers are techniques that are the major reason for an enterprise to move to the Nordic region to build data centers. Several initiatives are also carried out by data center physical infrastructure vendors to improve the efficiency of the facility. These initiatives include racks with better cable management and perforation for cooling,” according to Rohan.
Increasing need for DCIM and automation
DCIM facilitates management of the entire data center facility using the remote software. Most of the modern infrastructure solutions offered by the vendors enable remote monitoring features. However, these state-of-art technologies lead to higher CAPEX than traditional systems.
The growing concerns over energy consumption and carbon emission by data center facilities have made the use of DCIM software a mandatory requirement irrespective of the location. For facilities such as colocation data centers, DCIM will help in attaining certification and also attract customers.
Growing number of colocation providers
An enterprise operating a colocation facility offers more benefits when compared to an enterprise building its own data center. Colocation significantly reduces the CAPEX for infrastructure and improved connectivity required for operational services. Data center colocation is a facility that rents computing servers, storage, and network.
Colocation facilities are built with private racks that enterprises can rent to operate their IT infrastructure. Colocation facilities help SMEs to run their operations using modern infrastructure at reduced subscription costs. The number of these facilities is growing significantly in the Nordic region.
The key vendors are as follows:
- AECOM
- Arup Associates
- DPR Construction
- Mercury Engineering
- NCC
- Skanska
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