Investment in Nordic data centre sector surpasses US$3b
New research from BroadGroup shows the data center sector in the Nordic region continues its growth in leaps and bounds.
According to the research company, investment into the sector within the Nordic region has reached around USD$3 billion in just the last 12 to 18 months.
Data Centers Nordic III is the third annual report from BroadGroup that delves into the data center markets across eight countries that includes Denmark, Finland, Iceland, Norway, Sweden and the Baltic States of Latvia, Lithuania and Estonia - collectively these nations own more than 260 third party data center facilities.
Findings from the report suggest that the third party m2 space will surge by more than 26 percent before the end of 2018, with combined available power for third party facilities and hyperscales already approaching 800MW for the region.
BroadGroup expects the rampant growth within the industry to continue in the future.
The market landscape is predicted to change significantly over the next 12 to 18 months, driven by a combination of merger and acquisition activity, market entry by new investors, the emergence of ecosystems, and promotional initiatives (particularly from Sweden, Norway and Denmark) to attract hyperscale investment.
BroadGroup says with its abundance of renewable energy, a competitive energy tax (in most cases), and land availability, the region is set to be targeted for further hyperscale development by US and Asian firms, meaning the Nordics can potentially harness new infrastructure investments.
“Given the outlook for available renewable energy attached to greenfield and brownfield sites across the region, with more than 5500MW, the outlook for the end of 2018 and beyond is extremely positive,” says Philip Low of BroadGroup.
“As the Nordic markets are now much more integrated with Europe, existing colocation and content distribution hub opportunities, the emergence of Edge, fixed price contracts for renewable energy and further investment in connectivity present attractive opportunities for enterprises deploying IT assets globally.