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Findings of a new report launched today by BroadGroup, Data Centre Nordics, covering Iceland, Norway, Sweden, Finland and Denmark, and 112 operators, suggest that the market in third party data centres will increase by almost two and a half times in square metre space and triple megawatt power requirements from current levels by the end of 2017. Denmark benefits hugely through the construction of a vast new Apple data centre in Viborg, central Jutland.
The region’s attractiveness as a data centre location relies on a mix of lower cost and taxes for an abundance of renewable energy, particularly hydro-electric and wind power, incentives offered by inward investment agencies, highly educated workforce and standards of governance.
Industrial electricity pricing in the Nordic Region remains the lowest in the EU-28 countries. The report finds that energy providers range as low as €0.03 per kW Hour, excluding taxes, with the Nord Pole (Ulea) region in Northern Sweden and Western Norway offering the lowest electricity costs for data centre facilities.
Overseas investment by the likes of Google, Apple, Yandex and Facebook have strongly impacted the region and in some cases influenced the emergence of digital eco systems. However the recent announcement by Norwegian operator Lefdal, which proposes a 120,000 square metre facility, underlines investment by local players can be substantial and is likely to continue.
With business models largely focused on delivering colocation, hosting and cloud services, the number of wholesale providers remains low. Telcos still dominate in terms of number of facilities but as new players and entrants build out through to 2017, their market share, with the exception of TeliaSonera, will diminish.
“The Nordic Region is set for growth with new demand, build and market entrants,” commented Philip Low, managing director, BroadGroup. “Lower power costs, abundant resources of green energy, local and international investment, connectivity, taxation incentives, and natural cooling efficiencies present a formidable argument for consideration in the international IT deployment plans of any global enterprise.”
