Norway Data Center Storage - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Norway Data Center Storage Market size is estimated at USD 0.49 billion in 2024, and is expected to reach USD 0.74 billion by 2029, growing at a CAGR of 6.85% during the forecast period (2024-2029).

Key Highlights

• 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.
• Under Construction IT Load Capacity: The upcoming IT load capacity of the Norway data center market is expected to reach more than 700 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase above 3.4 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach above 174K units by 2029. Oslo is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 15 submarine cable systems connecting Norway, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Celtic Norse, which stretches over 2008 Kilometers with landing points from Oysanden, Norway.
• An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide. Several factors contribute to the demand for data centers and their growth within Norway, which is reflected by the country's evolving IT landscape, business activities, and technological initiatives.
• The key drivers that propel the development of data centers in the nation include digital transformation, cloud computing adoption, e-commerce & digital services, renewable energy & sustainability, and smart cities & IoT initiatives. Hence, such factors are expected to drive market growth during the forecast period.

Norway Data Center Storage Market Trends

IT & Telecommunication Segment holds the major share.

• Cloud services are growing in popularity in Norway. The need for big data integration and the demand for more remote work and data migration to the cloud are driving the use of domestic cloud data centers.
• Additionally, Norway data center providers are gradually collaborating with local and international technology companies to offer a wide range of services to their customers.
• Cloud infrastructure offers clients increased scalability and access to files from anywhere in the world. For instance, Norway's percentage of businesses using cloud services increased from 29% in 2014 to 60% by 2021, which is expected to grow.
• Owing to growing business requirements, companies have started seeking infrastructure services that could manage data traffic fluctuations and help them impart better services to customers with the least downtime duration. This has led to companies transitioning from their old system infrastructure to cloud infrastructure, which is expected to grow proportionally over the years.
• Further, the telecom segment provides its services to consumers using sophisticated virtual systems. With the advent of cloud infrastructure, telecommunication processes became simpler, which led them to switch toward a hybrid cloud structure, a combination of public and private cloud structures.
• With enhanced broadband speeds of 72.36 Mbps on 4G, mobile data consumption was expected to reach 8.5 GB/month in 2022 due to increased bandwidth speeds. It is expected to increase from 12.4 GB/month in 2023 to 64.4 GB/month in 2029. In addition, operators see 5G to overall uplift in average download speeds from 2.5 times for Telenor and ice, to 2.7 times for Telia. Such instances in the market are expected to create more need for data centers, resulting in rising demand for data center storage solutions in the coming years.

Hybrid Storage is Expected to Hold a Significant Market Share

• The combination of on-premises and cloud storage solutions is called hybrid storage in data centers. This approach leverages the strengths of both environments, offering the flexibility to store and manage data on-site and in the cloud.
• Norway has been intensely focused on renewable energy, with a considerable share of its power deriving from hydropower. In this respect, Hybrid storage data centers can exploit it by optimizing energy use and aligning themselves with sustainable practices to contribute to the country's environmental objectives.
• In Norway, government initiatives aiming at technology adoption and innovation can contribute to the demand for hybrid storage-type data centers. These initiatives can emphasize the need for upgrading IT infrastructure to support digital transformation.
• Furthermore, the implementation of 5G in the country has led to an increase in the consumption of data, which has triggered the growth of data centers in the country. Norway currently has a total population of around 5.49 million, of which 5.43 million are internet users. Around 63.05% of the users primarily use laptops, while around 35.13% use smartphones to access internet services. About 881.9 thousand homes use smart home appliances for health, with a penetration of 35.6% for smart devices in Norway. Such market improvements propel Data Centers' growth and contribute to segmental growth.
• The key players in the market focus on improving the data center storage solutions to meet the market demand. In May 2023, Infinidat, a prominent provider of enterprise storage solutions, announced the launch of two prominent new solutions. The solutions include the launch of InfuzeOS Cloud Edition, which expands Infinidat’s support of hybrid cloud storage deployments and new InfiniSafe Cyber Detection for enterprise primary storage to better resist cyberattacks.

Norway Data Center Storage Industry Overview

The upcoming data center construction projects in the country are poised to drive the demand for the Norway Data Center Storage Market in the coming years. This market is moderately consolidated, featuring key players such as Dell Inc., Hewlett Packard Enterprise, Huawei Technologies Co. Ltd., Hitachi Vantara LLC, and Kingston Technology Company Inc. These major players, commanding a significant market share, are strategically focused on expanding their regional customer base.

In June 2023, Hewlett Packard Enterprise (HPE) enhanced its HPE GreenLake edge-to-cloud platform by introducing Software-as-a-Service (SaaS) offerings for backup and machine learning. Additionally, the company delivers additional HPE SaaS offerings on the AWS marketplace and extends the Network-as-a-service (NaaS) portfolio.

In April 2023, Hewlett Packard Enterprise (HPE) announces new file, disaster, block, and backup recovery data services. These services are designed to help customers eliminate data silos, reduce cost and complexity, and improve performance. The new file storage data services offer scale-out, enterprise-intensive performance for data workloads, while the expanded block services provide mission-critical, midrange storage economics.

Additional Benefits:

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

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