Denmark Data Center Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Denmark data center construction market is projected to register a CAGR of 12.44%.

Key Highlights

• The upcoming IT load capacity of the Denmark data center construction market is expected to reach 332.1 MW by 2029.
• The country's construction of raised floor area is expected to increase by 1.3 million sq. ft by 2029.
• The country's total number of racks to be installed is expected to reach 63,863 units by 2029. Copenhagen is expected to house the maximum number of racks by 2029.
• There are close to 20 submarine cable systems connecting Denmark, and many are under construction. One such submarine cable, estimated to be built by the end of 2023, is Digital E4, which stretches over 70 Kilometers with landing points in Rønne, Denmark, and Tejn, Denmark.

Denmark Data Center Construction Market Trends

IT and Telecom to have significant market share

• The cloud segment reached an IT load capacity of 14.40 MW in 2022. It is projected to exhibit a CAGR of 16.46%, surpassing 60.94 MW by 2029. On the other hand, e-commerce is predicted to register a CAGR of 16.55% to reach a capacity of 42.30 MW by 2029. Among end-user industries, the cloud is expected to account for the highest market share, while e-commerce and telecom are expected to witness the fastest growth over the forecast period.
• For instance, in 2021, the share of companies using cloud computing services reached 65%. The market in Denmark has also been driven by rising cloud use across most companies as a result of developing technologies like artificial intelligence, big data, and blockchain. The Munichbased managed cloud services platform Skaylink announced in 2021 that it had merged with cVation, giving it a strong foothold in the Danish market. Both businesses will gradually bundle their cloud computing resources in the coming months.
• In May 2022, Nokia announced that team.blue Denmark, a unit of the team.blue Group, the top hosting and cloud services provider to small and medium-sized businesses (SMEs) in Europe, had begun using its 7750 Service Routers (SR). With the implementation, team.blue will be able to increase its network infrastructure to accommodate its 250,000 Danish clients' fast-expanding service needs. As the popularity of cloud computing services and applications increases, more colocation cloud-based data centers are being built in Denmark.

Copenhagen to host more data center construction in the country

• The total IT load capacity in the Copenhagen hotspot reached an IT load capacity of 51.48 MW in 2022. It is projected to exhibit a CAGR of 8.09%, surpassing 119.7 MW by 2029. On the other hand, the Rest of Denmark is predicted to register a CAGR of 18.73% to reach a capacity of 218.36 MW by 2029.
• Copenhagen is the major hotspot in the region. It has convenient access to the city by air, land, and water and is brimming with business prospects. Greater Copenhagen connects continental Europe, Scandinavia, and the Baltic States, giving 25 million Scandinavians and the 100 million-person North European market access. Profiting from this has been essential to its success in the global market, facilitating trading goods and services with economic superpowers like Germany, the United Kingdom, the United States, and China. These factors are expected to further offer favorable conditions for the growth of the data center market in the country. During the forecast period, Copenhagen will likely show a drop in the number of data centers as few operators are looking for locations other than Copenhagen for their data center establishments.
• Copenhagen's start-up ecosystem is ranked 53rd globally, first in Denmark, and 11th in Western Europe. Followed by Copenhagen, Aarhus stood in the 213th position globally and second in Denmark.
• The Rest of Denmark includes Aarhus, Skanderborg, Esbjerg, Odense, Randers, and Others. Aarhus is one of Denmark's most important growth areas, with one of the country's largest concentrations of foreign labor. The business sector in Aarhus has achieved great success by concentrating on creating and marketing cutting-edge, knowledge-intensive, and internationally-focused products and services.
• Esbjerg has several subsea fiber systems terminating within or nearby. These include Havfrue (United States, Ireland, Norway, and Denmark), Havhingsten (Ireland and Denmark), Cobra (the Netherlands and Denmark), Skagerrak 4 (Norway and Denmark), and DANICE (Iceland and Denmark). In March 2022, Arelion (Telia Carrier) announced the new 750 km fiber route from Oslo, Norway, to Esbjerg, Denmark, where it joins the wider Arelion pan-European network. The new route doubles available capacity in the country and will support new data center infrastructure, ensuring future traffic needs can be met for years to come.

Denmark Data Center Construction Industry Overview

The Denmark Data Center Construction Market is fairly consolidated, with significant companies such as AECOM, Arup Group Limited, Legrand, Atos, and Arista Networks.

In February 2023, GlobalConnect became the first colocation operator in Europe to offer its clients immersed cooling technique that can reduce data center cooling power consumption by up to 90%. The next-generation cooling technology was deployed in GlobalConnect's data center in Copenhagen and will be rolled out to all remaining data centers based on customer demand.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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