Market Trends of Denmark Data Center Cooling Industry
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.
Understand The Key Trends Shaping This Market
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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.
