Sweden Data Center Cooling Market

Sweden Data Center Cooling Market Analysis

The Sweden Data Center Cooling Market size is estimated at USD 100.14 million in 2025, and is expected to reach USD 232.83 million by 2031, at a CAGR of 15.1% during the forecast period (2025-2031).

• Sweden's very cold climate makes it an attractive location for data centers, offsetting the need for major server cooling systems. However, urban data centers are increasingly important as the 'edge' of the network develops. Cooling-as-a-service is one advantage they have over remote sites, leading to major market demand.
• The upcoming IT load capacity of the Swedish data center market is expected to reach more than 500 MW by 2030. The country's construction of raised floor area is expected to reach more than 2 million sq. ft by 2030.
• The country's total number of racks to be installed is expected to reach more than 87K units by 2030. Stockholm is expected to house the maximum number of racks by 2030. Close to 26 submarine cable systems are connecting Sweden, and many are under construction. One such submarine cable that is estimated to start service in 2024 is N0r5ke Viking 2, which stretches over 9,000 km with landing points from Lagunen, Sweden.

Sweden Data Center Cooling Market Trends

IT and Telecom to Hold Significant Share

• In 2029, the smartphone user base is projected to hit a record high of 9.9 million, marking the ninth consecutive year of growth. This surge in smartphone adoption has paralleled a rise in mobile data traffic and a growing number of mobile internet users. As data traffic escalates, so does the demand for data construction, subsequently driving up the need for cooling solutions.
• Sweden boasts the lowest power prices in the European Union (EU), largely thanks to its local hydropower plants, which ensure a consistent and reliable renewable energy source. With an impressively low carbon footprint of just 0.04 g CO2 per kWh, Sweden is becoming a prime destination for telecom companies. These firms are shifting their data operations from costly fossil-fuel-dependent regions to Sweden's affordable clean energy landscape, driving market demand.
• As 4G adoption surges and the 5G wave approaches, telecom vendors are increasingly channeling investments into Swedish data centers. In a recent move, Net4Mobility, a Swedish network provider formed by the collaboration of local carriers Tele2 and Telenor, unveiled its ambition to link 90% of Sweden's populace to its 5G network by the close of 2023. These advancements are poised to drive heightened investments in data processing facilities.
• In 2023, leading technology companies established active sites in Nordic countries, with Sweden taking the lead. Factors such as a favorable regulatory environment, robust infrastructure (notably fiber optic connections), affordable energy, abundant renewable resources, and a naturally cooler climate (reducing cooling system needs) have all contributed to this trend.

Liquid Cooling to Hold Significant Growth

• In facilities with exceptionally high-density racks, typically exceeding 30 kW, air cooling proves inadequate for maintaining the reliability of IT systems, regardless of how new or optimized they are. As rack power requirements in many facilities are near 20 kW, and with companies targeting racks demanding 50 kW or more, liquid cooling transitions from an option to an absolute necessity. Notably, facilities like STHLM 4 of Conapto (Designrepublic.se) are currently under construction, emphasizing the trend toward high rack density.
• As internet usage surges and e-commerce expands, the demand for hyperscale data centers is skyrocketing. These data centers, predominantly run by tech giants, are pivotal for cloud services and the burgeoning fintech startups and have a significant environmental footprint, notably in water consumption. A case in point: a data center in Sweden has managed to slash its energy bills by a million dollars annually by harnessing seawater for server cooling. Similarly, Interxion, a colocation firm based in the Netherlands with data center operations in 11 countries, pumps water from the Baltic Sea to cool its IT equipment in Stockholm.
• Free cooling is a hallmark of the Swedish data center region. Utilizing direct water evaporation for humidification, this approach consumes minimal energy. As a result, this straightforward and economical method achieves a 30% cut in energy expenses and slashes water usage by 90% compared to conventional water-based cooling systems. To meet the humidification water needs of the data center, a rainwater harvesting system was implemented, significantly reducing the reliance on fresh water.
• Over 45% of businesses in Sweden report that cloud computing technologies have gained significance in their operations. Additionally, the rising number of internet users and the widespread adoption of wireless devices drive the demand for online cloud platforms. As cloud storage adoption surges, so does the anticipated demand for liquid cooling systems in data centers. Furthermore, tech giants like Google and Microsoft are expanding their domestic storage capacities and optimizing cloud workflows, intensifying the demand for liquid cooling solutions.

Sweden Data Center Cooling Industry Overview

The Swedish 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 Trane Technologies Company LLC, Alfa Laval AB, Schneider Electric SE, Vertiv Group Corp., Daikin Applied Europe S.p.A.. 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, Trane Technologies Company, LLC, and Vertiv Group Corp. offer both liquid and air-based cooling products.

Sweden Data Center Cooling Market Leaders

Sweden Data Center Cooling Market News

• June 2024: Swedish data center company EcoDataCenter contracted Vertiv to provide high-efficiency chilled water cooling solutions for its cutting-edge facilities under construction in Falun, Sweden.
• December 2023: Intel collaborated with RISE on Data Center Initiatives. The semiconductor leader is set to engage in RISE's data center testbed, dubbed the Infrastructure and Cloud Research & Test Environment (ICE). They focus on exploring sustainable methods for heat removal from chips, utilizing air and liquid cooling techniques.