Market Trends of Denmark Data Center Construction Industry
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.
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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.
