Denmark Data Center Construction Market

Denmark Data Center Construction Market Analysis

The Denmark Data Center Construction Market size is estimated at USD 1.06 billion in 2025, and is expected to reach USD 2.23 billion by 2031, at a CAGR of 13.17% during the forecast period (2025-2031).

• Under Construction IT Load Capacity: The upcoming IT load capacity of the Danish data center construction market is expected to reach more than 300 MW by 2030.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to be more than 1.3 thousand sq. ft by 2030.
• Planned Racks: The country's total number of racks to be installed is expected to reach more than 63.9 thousand units by 2030. Copenhagen is expected to house the maximum number of racks by 2030.
• Planned Submarine Cables: There are close to 20 submarine cable systems connecting Denmark, and many are under construction.

Denmark Data Center Construction Market Trends

The IT and Telecommunications Segment to Record Significant Market Share

• With an impressive 99.3% 5G coverage, Denmark stands out for its exceptional connectivity speeds and minimal latency. The country's dedication to technological progress is evident through initiatives like the 5G award program, which, in turn, spurs the construction of more data centers.
• Rising cloud adoption, fueled by advancements in technologies such as AI, big data, and blockchain, is propelling Denmark's market. Notably, the country's data center construction market has witnessed a significant uptick, drawing in tech giants like Facebook, Google, and Apple, bolstering the nation's cloud computing infrastructure.
• The looming 5G wave is prompting telecom companies to invest in the data center market. Denmark, for example, aims to extend its broadband strategy to reach 98% of households and businesses, offering 1 Gbps download speeds by 2025.
• In August 2023, Ericsson and TDC NET activated Denmark's inaugural 5G Standalone (SA) network, heralding a new era of possibilities for consumers. This move not only propels growth in the country's data center industry but also incentivizes operators to either expand their existing facilities or construct new ones to meet the escalating demands for data processing.

Tier 3 Data Centers were Expected to Record Significant Market Share in 2023

• Denmark's data center construction market is steadily expanding, prompting service providers to embrace tier 3 standards. This shift has led to a notable uptick in tier 3 colocation facilities across the nation. By 2023, Denmark had already established more than 25 tier 3 data centers, and with approximately 5 more in the pipeline, all striving for tier 3 certification.
• Leading the construction of tier 3 data centers are key players such as Interxion (Digital Realty Trust Inc.), Stack Infrastructure Inc., and GlobalConnect. Notably, Copenhagen is poised for a substantial uptick in data center construction activities within Denmark.
• The rising wave of digitization is poised to drive substantial growth for tier 3 data centers in the coming years. This growth is fueled by key factors such as the ubiquitous use of smartphones and the rapid expansion of e-commerce, social media, and fintech industries. For instance, as of January 2024, Denmark boasted 4.72 million social media users, representing an impressive 79.7% of its total population. These trends collectively bode well for the proliferation of tier 3 data centers.

Denmark Data Center Construction Industry Overview

The Danish data center construction market is moderately fragmented, with key players such as MT Højgaard Holding and Mercury Engineering. Notably, major data center corporations are intensifying their investments in Denmark, primarily focusing on expanding and building new facilities. This uptick in investments directly correlates with the growing demand for advanced data processing and storage capabilities.

October 2023: atNorth, a data center provider, unveiled its plans to broaden its operations into Denmark, setting up a cutting-edge facility in Ballerup, a suburb of Greater Copenhagen. The initial phase of this project is slated to launch in Q4 2024, just 12 months after the commencement of construction. This new site, dubbed DEN01, signifies atNorth's ninth data center and solidifies its footprint in four out of the five Nordic nations.

Denmark Data Center Construction Market Leaders

Denmark Data Center Construction Market News

• February 2023: Prime Data Centers officially announced its expansion into Denmark as part of its broader strategy to bolster its presence in Europe, the Middle East, and Africa. The company is set to establish a cutting-edge 124 MW data center campus in the region.
• December 2023: Penta Infra initiated the construction of a colocation data center in Hamburg, Germany. The new facility, spanning 2,500 sq. m (26,900 sq. ft) of white space, is slated to be operational by early 2025, boasting a capacity of 4.4 MW.