Why the Nordics are the Hotspot for Data Centre Development?

In the current era, marked by an increasing reliance on digital technologies fueled by artificial intelligence (AI), the demand for data centre capacity is on the rise. As companies embrace AI to drive innovation and expansion, the necessity for ample data centre capacity has reached a critical point.

The Nordic nations possess a strategic edge over the remainder of the European Union in terms of becoming the next hub for data centres, but what’s the reason behind it?

Due to the benefits the area brings, The Nordic region is expected to experience a surge in demand ranging from 30% to 55%.

The Nordic region, characterised by vast expanses of land and a strong focus on renewable energy, has emerged as a major location for data centres. Within this Nordic area, Stockholm is particularly distinguished as a top choice for hosting data centre colocation facilities. Known for its eco-friendly power supply, affordable electricity rates, and forward-thinking strategies for reusing heat, Stockholm provides an optimal setting for the functioning of data centres.

Assuming a typical-sized data centre in 2017 has a capacity of 10 MW, it could lower its energy expenses by 70% by moving to Sweden instead of the UK, even before taking into account an energy supply that produces ten times the amount of energy from the Nordic energy mix.

Lately, there has been an increase in global companies establishing operations in the Nordic region. Facebook has recently constructed its most energy-efficient data centre so far in Lulea, Sweden, taking advantage of a consistent renewable energy source and minimising the necessity for backup power. Microsoft and Google have also moved into Finland, taking advantage of the connection between the eastern and western parts of the region.

To sum up, as artificial intelligence further molds various sectors, the significance of eco-friendly data centre infrastructure cannot be emphasised enough. With funds flowing into up-and-coming regions such as the Nordics, along with progress in eco-friendliness and tech, the prospects for data centres appear promising.