Sweden Data Center Rack - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2030

The Swedish Data Center Rack Market reached a volume of around 62,000 in the previous year, and it is further projected to register a CAGR of 5.7% during the forecast period. The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

Key Highlights

• Under Construction IT Load Capacity: The upcoming IT load capacity of the Sweden data center market is expected to reach more than 400 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase above 1.7 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach above 87,000 units by 2029. Stockholm is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 26 submarine cable systems connecting Sweden, and many are under construction.

Sweden Data Center Rack Market Trends

Full Rack accounted for majority market share in 2022

• Sweden is one of the leading globally connected countries in terms of the Internet and has a high consumer e-commerce maturity. Online shoppers in Sweden in 2021 will be 8 million, with the e-commerce industry accounting for 80% of them.
• Services purchased online accounted for only 8.7% of the retail market in past years, after which its share will almost double to 16%, driving the growth of online shopping in the region. It shows that it is being accepted. These figures demonstrate the growing demand for data processing devices in the e-commerce consumer industry segment of the market.
• Due to the increasing shortage of space in various companies, a full rack in the data center has taken a large part of the market share in France. The demand for full-rack data center infrastructure is increasing to cope with the increasing rack size due to the rapid growth of mobile broadband networks due to the increase in big data analytics combined with cloud computing.
• With large amounts of data generated every day, businesses rely on data centers to efficiently manage data and storage. Therefore, the increasing use of full-rack data centers is the most important factor affecting data center rack consumption. Increasing demand for technology services and investments by large companies are also changing the market growth.
• Initially, the focus was solely on data center rack infrastructure, with only size and cost considered during deployment. However, the introduction of high-density applications by various end-users, such as online banking, IT and telecommunications, media, and entertainment, creates opportunities for increased usage of full racks of data centers.

Cloud sector is the fastest growing sector in the country

• Cloud computing makes information, applications, and services accessible to multiple customers over the Internet. The Swedish data center industry is starting to receive attractive investments from hyperscale cloud providers such as Google, Microsoft, and Amazon. In October 2022, Google Cloud announced plans to build its first cloud region in Sweden to drive sustainable business transformation. In 2021, 54 cloud computing start-ups and companies will be established in Sweden.
• The prevalence of wireless devices and increasing connectivity to the Internet has increased the demand for online cloud platforms. Rising digital penetration of computers and other devices, rising from 89.72% in 2017 to 94.36% in 2022, boosted traffic on broadband channels, further supporting the growth of cloud computing services. Such factors are expected to increase the demand for computing and storage devices in the cloud market segment.
• Procurement of renewable energy, government efforts to build smart cities that increase the use of edge computing, digital economy, and rising industrial technology spending are expected to drive investment in Sweden's data centers.
• Furthermore, over 65% of Swedish companies are investing in digitalization. The trend of digitization is expected to continue during the forecast period, especially in the public sector. Demand is primarily driven by the introduction of new delivery models such as cloud computing, big data, and the Internet of Things (IoT). The increasing use of smartphones and tablets in business has become increasingly important to the public sector and e-commerce market.

Sweden Data Center Rack Industry Overview

The Sweden Data Center Rack Market is moderately competitive and has gained a competitive edge in recent years. In terms of market share, a few major players, such as Black Box Corporation, Eaton Corporation, Hewlett Packard Enterprise (HPE), ENOC SYSTEM AB, and Schneider Electric SE, currently dominate the market. These major players with a prominent market share focus on expanding their customer base across foreign countries.

In June 2023, Swedish startup Evroc planned to open a number of hyperscale data centers across Europe. The company raised EUR 13 million (USD 13.9 million) in a pre-seed round but will increase that to EUR 3 billion (USD 3.2 billion) over the next two years as it develops and operates two hyperscale data centers in Europe. The new DC facilities would increase the demand for data center racks in the coming years.

Additional Benefits:

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

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