The Data Centre market in the Nordics is primed for exponential growth as a result of the acceleration of artificial intelligence (AI), according to global real estate advisor, CBRE.
AI and machine learning (ML) technologies have experienced unprecedented adoption levels in 2023 and these wide-scale, digital business transformations are fuelling demand for data centre infrastructure as a result.
New research from CBRE suggests that much of this demand can be satisfied in the Nordics, primarily due to the low-cost power availability and leading sustainability credentials in the region. There is an abundance of low-cost hydro power available and with the inherently cold climate, there is minimal need to use additional power to cool equipment.
CBRE predicts that the Nordics will account for 8% of all colocation data centre supply in Europe by the end of 2023, a sharp year-on-year increase from 5% in 2022, with many locations in the region set to benefit from increased hyperscaler demand.
According to the research, Norway’s data centre capacity is expected to more than double by the end of 2026 to 500MW, compared to the projected 210MW at the end of 2023. Furthermore, CBRE predicts that Stockholm’s data centre capacity will almost double by the end of 2026 to 136MW.
Stockholm, alongside Oslo and Copenhagen, already forms part of Europe’s 20 largest data centre markets with further growth expected as customers with large scale requirements look to the Nordics to fulfil demand.
Much of the new capacity will be absorbed by the hyperscale operators, but significant opportunities exist for colocation vendors to develop new purpose-build facilities, according to the research.
Rob Cooper, head of Data Centre Advisory at CBRE said: 'Behaviours of AI and ML driven businesses, who demand such significant power and density, will also be driven by cost to ensure that their services are run as efficiently and as cost-effectively as possible.'
Andrew Jay, CBRE’s head of Data Centre Solutions for Europe added: 'The European Data Centre market has traditionally been dominated by Frankfurt, London, Amsterdam, Paris and Dublin but with the Nordics presenting itself as a front runner to satisfy requirements fuelled by AI growth, it’ll be interesting to see a wider spread of activity across Europe in the coming years.'