DUBLIN--(BUSINESS WIRE)--The "Data Center Market in Nordic - Industry Outlook and Forecast 2019-2024" report has been added to ResearchAndMarkets.com's offering.
The Nordic data center market is expected to grow at a CAGR of over 7% during the period 2018-2024.
Key Market Insights
- The report provides the following insights into the Nordic data center market for the forecast period 2019-2024.
- It offers comprehensive insights into current industry trends, trend forecast, and growth drivers about the Nordic data center market.
- The report provides the latest analysis of Nordic data center market share, growth drivers, challenges, and investment opportunities.
- It offers a complete overview of market segments and the regional outlook of the Nordic data center market.
- The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.
The availability of land to develop data centers is an active driver for the growth of the Nordic data center market. Hyperscale operators and colocation providers are establishing data centers in the Nordic region to the decrease the electricity cost. Hydro and wind powers are the major renewable energy sources in the Nordic region. Strong support from the local government and energy producers is a significant boost for the operators in the region. The operators are also procuring renewable energy.
The following factors are likely to contribute to the growth of the Nordic data center market during the forecast period:
- Increased Demand for Cloud Computing
- Growth in Hyperscale Colocation Investment
- Availability of Renewable Energy Sources
- Construction of Cryptocurrency Data Centers
- Increase in Modular Data Center Deployment
Nordic Data Center Market: Segmentation
This research report includes detailed market segmentation by electrical infrastructure, mechanical infrastructure, cooling systems, general construction, tier standards, and geography.
The use of lithium-ion UPS systems will continue to grow among data center operators in the region as they help to reduce the OPEX through low maintenance cost. Vendors are continually coming up with innovative UPS solutions that increase efficiency and reduce cost. Large and mega datacenters in Nordic are likely to procure UPS systems of over 750 kVA, whereas small and medium facilities are installing UPS systems with less than 500 kVA capacity.The adoption of generators in the Nordic data center market is likely to decline during the forecast period as the popularity of carbon-neutral facilities is growing.
To facilitate free cooling in data centers, the use of direct/indirect evaporative coolers and air/water-side economizers will continue to grow in the Nordic region. The Nordic data center market is likely to witness the adoption of Open 19 rack architecture and related IT infrastructure designs. It is expected that 42U and 48U racks will be major revenue contributors to the Nordic data center market.
The market for CRAC and CRAH units in the Nordic data center market is expected to grow steadily during the forecast period as several data centers are installing direct evaporative coolers, which do not use CRAC or CRAH systems. The chiller market in the Nordic region is expected to be low due to the extensive use of free cooling systems. Further, the adoption of free cooling chillers with smart technology is growing as they enable operations based on outside temperatures and use limited water for cooling.
Although the Nordic region has a strong presence of infrastructure vendors, the dependency on engineering firms that operate at the regional or global level is high in the market. The increase in the investment in hyperscale facilities in the Nordic region is likely to generate the demand for local engineering expertise. Further, the increase in greenfield facilities will generate high revenue for installation and commission service providers in the Nordic region.
Colocation data center and managed service providers in the Nordic region are expected to comply with regulations and certifications. Designing a facility with prescribed rules provides high reliability, scalability, and flexibility in data center operations along with efficiency and resilience. The importance of physical security systems, along with relevant securities, is growing among service providers in the Nordic region.
In the future, the data center market is likely to witness the increased use of robot monitoring systems in the facility with sensors and video surveillance. The DCIM market is expected to grow in the Nordic region due to the growing power consumption and increasing carbon emissions. The adoption of intelligent security solutions will continue to grow in Norway, with organizations planning to build facilities with EMP physical security protection.
The Nordic data center market by Tier I and Tier II is expected to decline during the forecast period. However, Tier III facilities are likely to grow during the forecast period in the Nordic region. Denmark and Norway have five and six facilities, respectively, which are certified by the Uptime Institute. Many operators are expected to move to the Tier IV category based on the growth in the rack power density and critical applications. Nordic countries are witnessing increased hyperscale investments from Google, Facebook, Microsoft, and AWS.
Nordic Data Center Market: Geography
The adoption of cloud-based services in Denmark is growing significantly. Denmark is an ideal location for data center operations because it has the closest proximity to other European countries and robust fiber connectivity inside the country. The increasing number of several submarine fiber cable projects from Denmark that connects with other European countries such as the UK, Germany, the Netherlands, France, and the US is growing. The increased construction of hyperscale data centers in Denmark is expected to lead the growth of intelligent and efficient power infrastructure solutions during the forecast period.
The Finland data center market has witnessed significant growth in the recent year. The adoption of PaaS and IaaS solutions is increasing in the country. The availability of 100% renewable energy sources is helping Iceland to emerge as the most favorable location for data center development in the Nordic region. Increasing tax incentives on data center property and equipment by the Norwegian government is a significant factor for the data center development. Sweden has been witnessing significant data center investment. The availability of renewable energy and the presence of favorable climatic condition are few of the major factors that attract new data center investments in the country.
Key Vendor Analysis
The Nordic data center market is witnessing steady growth, with the high adoption of efficient and modular infrastructure solutions. The market has evolved over the years with multiple innovations focused on reducing power and water consumption and decreasing carbon dioxide emissions.
Moreover, the Nordic data center market has a strong presence of vendors across all three categories: electrical infrastructure, mechanical infrastructure, and general construction. Hyperscale data centers are likely to adopt lithium-ion batteries, natural gas generators, and intelligent PDUs during the forecast period. Infrastructure vendors are expected to offer innovative products during the forecast period, especially those products that help to reduce power wastage and improve efficiency.
Market Growth Enablers
- Increasing Demand for Cloud Computing
- Growing Hyperscale Colocation Investment
- Availability of Renewable Energy Sources
- Free-Cooling Facilitates Operating Data Centers at Low PUE
- Tax Incentives and Availability of Data Center Site
Market Growth Restraints
- Lack of Skilled Workforce
- Procurement Cost of Efficient Infrastructure
- Physical Security Constraints
Opportunities and Trends
- Increasing Popularity of District Heating Concept
- Concept Growing Construction of Cryptocurrency Data Centers
- Purchase of Land to Increase Hyperscale Investment
- Modular Data Center Deployment Will Increase
Key Data Center Construction Contractors
- DPR Construction
- HDR Architecture
- MACE Group
- Mercury Engineering
Key Data Center Infrastructure Providers
- Schneider Electric
Key Data Center Investors
- Amazon Web Service
Other Prominent Construction Contractors
- Arup Group
- AFEC International
- Etix Everywhere
- Kirby Group
- MTH Group
- Red Engineering
- Royal Haskoningdhv
- SRV Group
Other Prominent Infrastructure Providers
- Airedale Air Conditioning
- Alfa Laval
- Condair Group
- General Electric (GE)
- Hewlett Packard Enterprise (HPE)
- MTU Onsite Energy (Rolls-Royce Power Systems AG)
- Systemair AB
- KINOLT (EURO-DIESEL)
Other Prominent Data Center Investors
- Advania Data Centers
- Basefarm (Orange Group)
For more information about this report visit https://www.researchandmarkets.com/r/62l4l7
Laura Wood, Senior Press Manager
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