Nordic Data Center Construction Market Outlook Report 2023: Market to Reach a Value of Over $2.5 Billion by 2028 - Tax Incentives Boosting Data Center Construction - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Nordic Data Center Construction Market - Industry Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The Nordic data center construction market was valued at USD 1.68 billion in 2022 and is expected to reach USD 2.57 billion by 2028, growing at a CAGR of 7.33%

One of the reasons that operators prefer Nordics for data center developments is due to the cold climate of the regions, which helps data center operators cut down the cooling costs and reduce their PUE significantly. Many governments across the Nordics area are launching AI strategies for implementing AI in various sectors generating huge loads of data sets and driving the need for data center construction.

Denmark has topped the list amongst Nordic countries, investing more than USD 500 million in 2022. Sweden and Norway followed Denmark in terms of high investments in 2022. Operators are signing PPA with renewable energy providers to increase sustainability by decreasing their carbon footprint. For instance, Telia and Telenor signed a PPA with Better Energy for a solar park construction in Denmark.

There is increased growth in cloud regions set up by multiple hyperscale data centers operators, such as Google, Microsoft, AWS, Oracle, and Meta. There is an increase in initiatives being taken by various governments across the regions to make the respective countries carbon-neutral in the future. Operators are moving through more sustainable construction methods like wood and mycelium.

Supply chain disruptions, increasing inflation rates, shortage of skilled workforce, and political disturbances in Russia will likely hurt the market.

KEY TRENDS IN THE NORDICS DATA CENTER CONSTRUCTION MARKET

5G Deployments Fueling Data Center Investments

Nordic countries are deploying 5G rapidly, driving investments in data centers, especially edge data centers.

In July 2022, Eltel and Telenor Norway signed an agreement for USD 36-40 million for 2023-2024 for upgrading and strengthening the telecommunication network of Telenor 5G in Denmark.

Telenor and Tele2 combined to form a joint venture known as Net4Mobility which expects to cover 90% Swedish population with 5G by the end of the year 2023 and 100% by 2024.

Iceland is showing tremendous signs of 5G progression. Siminn, an Icelandic network operator, has targets for nationwide 5G coverage by the end of 2022.

Increasing Cloud Services Adoption

Nordic companies mainly opt for a hybrid cloud approach by enjoying public and private cloud benefits such as enhanced security. Companies across Nordics are shifting their workloads to the cloud to strengthen their digitalization goals and enjoy cloud advantages.

For instance, a Swedish bank migrated its services to the AWS cloud to analyze customer behavior and make data-driven decisions effectively. Hyperscale cloud services providers such as AWS, Google, Microsoft, Oracle, and Meta are increasing their service capabilities for supporting businesses.

Rising Awareness of Carbon-Neutrality

In Nordics, renewable energy sources such as wind, geothermal, and hydro are abundant. Operators are aligning their goals with the carbon-neutral goals of the respective countries. For instance, Green Mountain, a colocation operator, uses 100% of renewable energy in its data center operations.

Denmark is setting up energy islands to harness the resources in the Baltics and will be the first in the world. They will have the capacity to not only supply Denmark but also supply neighboring countries. Also, Nordic Governments are releasing policies relating to sustainability and energy reuse.

For instance, the Swedish Government released energy policies such as the Electricity Certificate System to ensure energy is used through renewable energy sources such as solar, wind, hydro, or geothermal.

Tax Incentives Boosting Data Center Construction

Various countries are providing tax incentives for investors based locally or even globally, which will aid in constructing data centers. The Government of Denmark launched a Green Tax Reform and green R&D, which falls under the Danish Recovery and Resilience Plan, for which a USD 250 million investment is planned.

Further, Norway has an abundance of hydropower supply; therefore, the government provides favorable and flexible tax rates on the consumed electricity to the industries which are energy intensive.

COMPETITIVE ANALYSIS

Some major Nordic data center construction market vendors include companies Arup, Caverion, Cowi, Designer Group, RED, and Granlund Group.

These vendors are collaborating with operators to provide reliable construction solutions. For instance, Keysource provided its planning, engineering, and construction services to Namsos Datasenter (NDS) for edge data center construction.

Vendors focus on regions with lower land and labor costs while ensuring the data center construction specifications are followed.

There is an immense focus on reducing the data center's energy consumption and carbon emission levels to improve their green credentials.

KEY QUESTIONS ANSWERED

• How big is the Nordic data center construction market?
• What is the growth rate of the Nordic data center construction market?
• What is the estimated market size in terms of area in the Nordic data center construction market by 2028?
• What factors drive the Nordic data center construction market growth?
• How many MW of power capacity is expected to reach the Nordic data center construction market by 2028?

Key Attributes:

Report Attribute	Details
No. of Pages	295
Forecast Period	2022 - 2028
Estimated Market Value (USD) in 2022	$1686 Million
Forecasted Market Value (USD) by 2028	$2577 Million
Compound Annual Growth Rate	7.3%
Regions Covered	Denmark, Finland, Iceland, Norway, Sweden

MAJOR VENDORS

Prominent Support Infrastructure

• ABB
• Alfa Laval
• Carrier
• Caterpillar
• Cummins
• Eaton
• HITEC Power Protection
• Legrand
• NetNordic
• Reillo Elettronica
• Rittal
• Rolls-Royce Power Systems
• Schneider Electric
• Socomec
• STULZ
• Trane Technologies
• Vertiv

Prominent Construction Contractors

• Arup
• Coromatic
• Caverion
• COWI
• Designer Group
• RED
• Dornan
• EXYTE (M+W GROUP)
• Gottlieb Paludan Architects
• Granlund Group
• MT Hojgaard
• Mace Group
• ISG
• Sweco
• Mercury
• Ramboll Group
• YIT

Prominent Data Center Investors

• Apple
• AQ Compute
• atNorth
• Bahnhof
• DigiPlex (IPI Partners)
• Digital Realty
• EcoDataCenter
• Equinix
• Green Mountain
• Hyperco
• Verne Global
• Google
• Meta
• Microsoft

Key Topics Covered:

1 Research Methodology

2 Research Objectives

3 Research Process

4 Scope & Coverage

4.1 Market Definition

4.2 Base Year

4.3 Scope of the Study

5 Report Assumptions & Caveats

5.1 Key Caveats

5.2 Currency Conversion

5.3 Market Derivation

6 Market at a Glance

7 Premium Insights

7.1 Key Market Highlights

7.2 Key Trends in the Nordics Data Center Construction Market

8 Introduction

8.1 Market Overview

8.2 Data Center Design Certifications

8.2.1 Uptime Institute Tier Standards

8.2.2 Leed Certification

8.2.3 Tia 942 Certification

9 Market Opportunities & Trends

9.1 5G Deployments Fueling Data Center Investments

9.2 District Heating Growth

9.3 Increasing Advances in Ai

9.4 Government Support/Initiatives for Data Center Construction

9.5 Innovations in Data Center Construction

10 Market Growth Enablers

10.1 Rising Awareness of Carbon Neutrality

10.2 Increasing Cloud Services Adoption

10.3 Big Data & IoT Driving Data Center Investments

10.4 Use of Free Cooling to Reduce Pue

11 Market Restraints

11.1 Dearth of Skilled Workforce

11.2 Security Issues Impacting Data Center Developments

11.3 Supply Chain Issues

12 Market Landscape

12.1 Market Overview

12.2 Market Size & Forecast

12.3 Area: Market Size & Forecast

12.4 Power Capacity: Market Size & Forecast

12.5 Five Forces Analysis

13 Facility Type

13.1 Investment: Market Snapshot & Growth Engine

13.2 Area: Market Snapshot & Growth Engine

13.3 Power Capacity: Market Snapshot & Growth Engine

13.4 Hyperscale Data Centers

13.5 Colocation Data Centers

13.6 Enterprise Data Centers

14 Infrastructure

14.1 Market Snapshot & Growth Engine

14.2 Electrical Infrastructure

14.3 Mechanical Infrastructure

14.4 General Construction

15 Electrical Infrastructure

15.1 Market Snapshot & Growth Engine

15.2 Ups Systems

15.3 Generators

15.4 Transfer Switches & Switchgear

15.5 Power Distribution Units

16 Mechanical Infrastructure

16.1 Market Snapshot & Growth Engine

16.2 Cooling Systems

16.3 Racks

17 Cooling Systems

17.1 Market Snapshot & Growth Engine

17.2 Crac & Crah Units

17.3 Chiller Units

17.4 Cooling Towers, Condensers & Dry Coolers

17.5 Economizers & Evaporative Coolers

18 Cooling Technique

18.1 Market Snapshot & Growth Engine

18.2 Air-Based Cooling Techniques

18.3 Liquid-Based Cooling Techniques

19 General Construction

19.1 Market Snapshot & Growth Engine

19.2 Core & Shell Development

19.3 Installation & Commissioning Services

19.4 Engineering & Building Design

19.5 Fire Detection & Suppression

19.6 Physical Security

19.7 Dcim/Bms Solutions

20 Tier Standards

20.1 Market Snapshot & Growth Engine

20.2 Overview of Tier Standards

20.3 Tier I & II

20.4 Tier III

20.5 Tier IV

21 Geography

21.1 Investment: Market Snapshot & Growth Engine

21.2 Area: Market Snapshot & Growth Engine

21.3 Power Capacity: Market Snapshot & Growth Engine

For more information about this report visit https://www.researchandmarkets.com/r/hgsv82

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