Data Center - Nordics

Nordics

Revenue in the Data Center market is projected to reach US$9.21bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$4.94bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.96%, resulting in a market volume of US$12.30bn by 2029.
In global comparison, most revenue will be generated in the United States (US$123.20bn in 2024).

Key regions: United States, Germany, India, Japan, China

Definition:

The Data Center market is a critical segment of the technology industry focusing on supplying and managing physical infrastructure necessary for hosting and operating IT systems, primarily servers, storage, and network equipment. This market spans from traditional in-house data centers to sophisticated facilities offered by specialized providers, covering services like hosting, shared data center facilities, and managed data center solutions. It targets a diverse client base, ranging from small businesses to large enterprises, offering flexible, scalable solutions for their IT infrastructure needs. This sector is integral to the efficient functioning and security of IT operations in various organizations.

Structure:

The Data Center market is structured in three markets based on the services model provided by the companies.

The Server market covers the resources and services related to servers, integral for hosting websites, managing databases, and supporting cloud computing.
The Storage market covers the resources and services related to data storage systems, crucial for archiving, data backup, and ensuring data recovery.
The Network Infrastructure market covers the resources and services related to network hardware essential for ensuring connectivity, data transmission, and network security.

Additional Information:

The Data Center market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Market values represent revenues paid to primary vendors at the manufacturer price level either directly or through distribution channels (excluding VAT). Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Data Center market include companies such as Dell, HPE, Huawei, and Ericsson.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center Market in Nordics is experiencing mild growth, influenced by factors such as increasing demand for digital infrastructure, growing awareness of data privacy and security, and the convenience of online services. This growth is driven by the sub-markets of Servers, Storage, and Network Infrastructure, as they cater to the rising need for advanced data processing and storage capabilities. However, the market is also impacted by challenges such as high operational costs and limited availability of skilled professionals.

Customer preferences: The Nordics have seen a rise in demand for sustainable and energy-efficient data center solutions, driven by the region's focus on environmental sustainability. This has led to the adoption of innovative technologies such as liquid cooling, renewable energy sources, and energy-efficient data center designs. Additionally, the growing trend of remote work and online education has increased the need for reliable and high-performing data centers, further driving the growth of the market.

Trends in the market: In the Nordics, the Data Center Market is experiencing a surge in demand for sustainable and energy-efficient data centers. This trend is driven by the region's push towards renewable energy sources and the growing awareness of the environmental impact of data centers. As a result, there is an increasing number of data centers being built with green technology, such as renewable energy sources and innovative cooling systems. This trajectory towards sustainability not only benefits the environment but also presents a competitive advantage for industry stakeholders in attracting environmentally-conscious clients. It is expected that this trend will continue to grow, with potential implications for the industry, including increased investment in renewable energy sources and the development of more advanced green data center technologies.

Local special circumstances: In the Nordics, the Data Center Market is flourishing due to the region's cold climate and abundance of renewable energy sources, making it an ideal location for energy-efficient data centers. Additionally, the cultural emphasis on sustainability and data privacy regulations have further propelled the growth of the market. In comparison to other markets, the Nordics also have a high level of digital literacy and a strong focus on innovation, driving the demand for cutting-edge data center solutions.

Underlying macroeconomic factors: The Data Center Market in the Nordics is heavily influenced by macroeconomic factors such as the overall economic health of the region, government policies and regulations, and global economic trends. The Nordics are known for their strong economies, stable political environments, and advanced technological infrastructure, making them attractive locations for data center investments. Additionally, the region's commitment to sustainability and renewable energy sources has also contributed to the growth of the data center market, as companies seek to reduce their carbon footprint and operate in environmentally-friendly locations. Furthermore, the increasing digitalization of industries and the rise of cloud computing are driving the demand for data center services in the Nordics, making it a lucrative market for investors.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.