Denmark Data Center Cooling Market

Denmark Data Center Cooling Market Analysis

The Denmark Data Center Cooling Market size is estimated at USD 69.74 million in 2025, and is expected to reach USD 387.77 million by 2031, at a CAGR of 33.1% during the forecast period (2025-2031).

• The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investments by domestic players are some of the major factors driving the demand for data centers in the country.
• Under Construction IT Load Capacity: The IT load capacity of Denmark’s data center rack market is expected to reach more than 800 MW by 2030.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by more than 1.1 million sq. ft by 2030.
• Planned Racks: The country's total number of racks installed is expected to reach more than 63K units by 2030. Copenhagen is expected to house the maximum number of racks by 2030. The climate in Denmark is moderate, with precipitation evenly distributed throughout the year. It has an average annual temperature of 8.3 °C and a mean annual precipitation of 746 mm. Depending upon climatic conditions, the DC cooling is done in the DC facilities.
• Planned Submarine Cables: There are nearly 30 submarine cable systems connecting Denmark, and many are under construction. One such submarine cable, which was expected to start service in 2023, is the Digital E4; it stretches over 70 km with landing points from Ronne, Denmark, to Tejn, Denmark.

Denmark Data Center Cooling Market Trends

The IT & Telecommunication Segment Holds the Majority Share

• In Denmark, the increasing adoption of cloud technology by companies is largely fueled by advancements in artificial intelligence, big data, and blockchain. In March 2024, Tata Consultancy Services (TCS), a leading IT firm, inked a multi-million-dollar agreement with Nuuday, Denmark's digital connectivity and communications provider. This deal focuses on cloud transformation, aiming to enhance Nuuday's IT infrastructure and transition it to TCS's hybrid cloud. In the coming months, both companies are anticipated to consolidate their cloud computing resources.
• Technologies such as artificial intelligence, big data, SaaS, and blockchain are fueling the widespread adoption of cloud services among businesses. For example, in 2024, ComplyCloud, a SaaS company, revealed that SEED Capital invested 33.5 million DKK in its operations.
• Telecom companies are increasingly investing in the data center market, driven by the rising adoption of 4G and the impending wave of 5G. As of 2023, over 98% of the country's population was connected through 4G and 5G networks. Denmark's broadband strategy aims to provide 98% of its households and businesses with download speeds of 1 Gbps by 2025. In Q2 2022, Denmark reported a 5G availability rate of 36.4%. These developments in the telecom sector are anticipated to heighten the demand for data centers, subsequently boosting the need for manufacturers of data center cooling infrastructure in the coming years.

Liquid-based Cooling is Expected to Be the Fastest Growing Segment

• Denmark's data center market is experiencing a surge in investments, underscored by T5 Data Centers' inaugural entry into the nation. Additionally, Prime Data Centers has expressed intentions to enhance Denmark's data center landscape with their own hyperscale facilities. Providers are increasingly adopting liquid cooling technology to reduce power consumption. Factors such as green energy initiatives, low-latency networks, and one of Europe's most dependable power grids are attracting global tech giants like Microsoft, as well as international colocation operators, to establish a presence in Denmark. Furthermore, Denmark's stable climate, coupled with its political and economic stability, positions it as one of the world's safest locations, ideal for low-energy cooling solutions.
• As AI technology advances, data centers are consuming more water for cooling. In 2024, Denmark is partnering with NVIDIA to set up a national AI innovation center, which will feature one of the globe's most potent AI supercomputers. Additionally, Digital Realty is set to host this supercomputer in one of its AI-optimized facilities in Denmark. This data center is not only designed for sustainability but also operates entirely on renewable energy. Furthermore, the supercomputer will be fortified with top-tier security measures, ensuring it aligns with Danish data sovereignty. These initiatives are in response to the growing demands for cooling in data centers.
• With over 95% internet penetration, the country sees 86% of its population accessing the internet via mobile phones or smartphones. Danes frequently use both mobile phones and computers, underscoring their strong interest in e-commerce. A survey reveals that 88% of Danes have made online purchases, indicating a growing preference for cashless transactions. This shift is poised to have a lasting impact on the market. These trends are anticipated to drive the demand for data processing facilities in the telecom industry, subsequently increasing the need for DC cooling infrastructure in the country.

Denmark Data Center Cooling Industry Overview

The Denmark data center cooling market exhibits a moderate level of consolidation among key industry players, having sharpened their competitive edge in recent years. Notable market leaders in this segment include Daikin Applied Europe S.p.A., Rittal GMBH & Co.KG, Schneider Electric SE, Vertiv Group Corp., Alfa Laval AB. and others. These industry giants, boasting significant market shares, are actively engaged in expanding their customer base throughout the region. Their growth strategies primarily hinge on strategic collaborative efforts aimed at enhancing market share and overall profitability. Moreover, companies such as Schneider Electric SE, Vertiv Group Corp., offer both liquid and air based cooling products.

Denmark Data Center Cooling Market Leaders

Denmark Data Center Cooling Market News

• March 2024: A new Microsoft data center in Høje-Taastrup, located 25km west of Copenhagen, will utilize its waste heat to warm up to 6,000 homes. This facility is one of three data centers under construction, aimed at establishing a Danish Azure availability zone, a move first announced in 2020. The site's cooling system will produce warm water, which will be redirected by VEKS, known for constructing district heating systems in the Copenhagen area, and HTF, the operator of the local heat network.
• June 2024: In Denmark, Energy Cluster Denmark, Aalborg University, Heatflow, and R&R Consult have joined forces on an innovative project focused on reusing heat from data centers. Named Green DC, the initiative aims to cut down on power consumption, achieve CO2-neutral cooling for data center servers, and channel any excess heat into the district heating network and nearby buildings.