Sweden Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Sweden Data Center Market Analysis

The Sweden Data Center Market size is estimated at 398.6 MW in 2025, and is expected to reach 487.3 MW by 2030, growing at a CAGR of 4.10%. Further, the market is expected to generate colocation revenue of USD 411.2 Million in 2025 and is projected to reach USD 670.6 Million by 2030, growing at a CAGR of 10.27% during the forecast period (2025-2030).

Sweden's data center market is experiencing significant transformation driven by the country's strong digital infrastructure and commitment to sustainability. The market is characterized by increasing investments from major cloud providers and technology companies, with EcoDataCenter leading the data center capacity with 89 MW across five operating facilities, offering 7 kW per cabinet. The Swedish government's implementation of the "Going Digital" strategy has created a robust foundation for digital innovation, focusing on digital literacy, security, innovation, leadership, and data center infrastructure development. This comprehensive approach has positioned Sweden as a prime location for data center investments, particularly attracting operators focused on sustainable operations.

The market is witnessing substantial growth in cloud data center services adoption and provider expansion. In 2023, Google Cloud announced plans for its first cloud region in Sweden to promote sustainable business transformation, while major operators like STACK INFRASTRUCTURE are developing new facilities, including a 5,600-square-meter data center with 18 MW capacity. The Swedish e-commerce sector demonstrates strong digital maturity with 8 million online buyers and an 80% penetration rate, driving demand for data center services and storage capabilities. This digital transformation is further supported by the establishment of 54 cloud computing startups, indicating a robust ecosystem for cloud data center services.

The industry is experiencing a significant shift toward sustainable and energy-efficient operations. Swedish data center operators are increasingly adopting renewable energy sources, with many facilities operating on 100% renewable energy. A notable development is the collaboration between Conapto and real estate firm Fastpartner in 2023 to construct a 10,000-square-meter green data center facility in southern Stockholm, designed to accommodate 20 MW of power when fully built. This trend aligns with Sweden's broader environmental goals and attracts environmentally conscious clients.

The market is characterized by strong social media and digital content consumption trends, driving data center demand. In 2022, the country recorded 9.25 million social media users, with YouTube reaching 85.7% of the population through 8.73 million active monthly users. The enterprise value of Swedish technology companies has shown remarkable growth, increasing from EUR 122 billion in 2021 to EUR 239 billion in 2022, reflecting the robust digital ecosystem. This digital transformation is further supported by telecommunications infrastructure development, with Net4Mobility planning to connect 90% of the Swedish population to its 5G network by the end of 2023, creating additional demand for data center services.

Sweden Data Center Market Trends

Rising smartphone ownership and increasing in number of app downloads to boost the market growth

• The total number of smartphone users in Sweden was 9.46 million in 2022, and it is expected to witness a CAGR of 1.6% during the forecast period to reach a total number of 10.6 million by 2029.
• Sweden is a connected country with a strong level of digital readiness with a high penetration rate for internet usage, social media engagement, mobile connections, adoption of 5G, online shopping, and digital payments. For instance, according to GSMA, in Q2 2022, Sweden had the fastest 5G median download speed in the Nordic region, partially due to the country's digitalization strategy.
• In 2021, there were around 8 million users of e-commerce in Sweden, with a penetration rate of 80%. Swedish eCommerce 2021, an annual survey by payment provider Nets, indicated that overall spending on online shopping in Sweden increased by 10% in 2021, from about USD 20.3 billion (in 2020) to USD 22.3 billion. Considering the above factors, the number of smartphone users in Sweden is expected to grow over the period, driving the growth of the data center market in Sweden.

Increasing network investments to expand 5G network by provider such as Tele2 and Telenor, Net4Mobility and Telia Sweden is boosting the market demand

• The four major operators in the mobile network are 3 Sweden, Tele2, Telenor, and Telia. In 2018, Telia and Ericsson introduced the first 5G network program in Sweden at Stockholm's KTH Royal Institute of Technology, which stated that the commercial launch of 5G was in 2020. Swedish providers excel in 5G speeds but not so much regarding 5G availability, which was only 10% as of Q2 2022. In 2021, over one million subscriptions used the 5G mobile network four times more than in 2019), equal to 8% of all mobile subscriptions.
• Operators are focusing on their network investments to expand 5G network coverage across Sweden. A joint venture between Tele2 and Telenor, Net4Mobility, focuses on accelerating the 5G network. Tele2 and Telenor Sweden agreed to extend the reach of Net4Mobility to 90% of the Swedish population by the end of 2023 and the remaining 20% in 2024. By 2025, Telia Sweden plans to have coverage for its 5G network that is equivalent to that of its 4G network by working with longtime partner Ericsson. By 2023, it is intended to have 5G coverage for more than 90% of the population. In the long run, this is expected to be extended to 90% geographic and more than 99% population coverage.
• In 2022, 3 Sweden completed its 5G deployment on its current network. The company planned for the upgradation of its core to 5G for lower latency (2022-23), expanded and densified its network (2023–2024), and rolled out network slicing to meet the demands of businesses, including hospitals, airports, and factories. Such aspects show a promising growth of mobile data speed in the upcoming years.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: By Data Center Size

Large Segment in Swedish Data Center Market

The large data center segment dominates the Swedish data center market, holding approximately 29% market share in 2024 with an IT load capacity of 94.57 MW. The segment's prominence is driven by seven data center facilities concentrated in the Stockholm region, with major players like Bahnhof operating with a 22.87 MW capacity, followed by Interxion (Digital Realty Trust Inc.) at 11.3 MW, and Equinix Inc. at 10.6 MW. The segment's strong position is supported by Sweden's strategic advantages, including natural cooling opportunities and optimal climate conditions that help operators optimize costs and increase energy efficiency. The construction of new large-size data center facilities is actively underway in the Stockholm region, indicating continued expansion and market dominance.

Massive Segment in Swedish Data Center Market

The massive data center segment is projected to exhibit the highest growth rate of approximately 15% during the forecast period 2024-2029. This remarkable growth trajectory is driven by Sweden's increasing digitalization initiatives and the growing demand for higher computational power. The segment's expansion is further supported by the Swedish government's tax benefit policy for data centers, which effectively decreases electricity costs by 40%. Major cloud providers and technology companies are actively investing in massive data centers across Sweden, particularly focusing on sustainable operations and renewable energy usage. The segment is witnessing significant developments in terms of both new facility constructions and expansions of existing infrastructure to meet the escalating demand for data processing and storage capabilities.

Remaining Segments in Data Center Size Market

The medium, mega, and small segments complete the Swedish data center market landscape, each serving distinct market needs. The mega segment caters to large-scale operations requiring substantial computing power, particularly beneficial for government and enterprise applications. The medium segment maintains a steady presence with approximately 24 facilities across the country, primarily serving mid-sized businesses and regional operations. The small segment, while having a modest market presence, continues to serve specific niche requirements and local business needs. These segments collectively contribute to creating a diverse and comprehensive data center ecosystem in Sweden, offering various capacity options to meet different operational requirements and business scales.

Segment Analysis: By Tier Type

Tier 4 Segment in Swedish Data Center Market

The Tier 4 data center Nordics segment dominates the Swedish data center market, commanding approximately 57% market share in 2024, with an IT load capacity of 188.41 MW. This segment's prominence is driven by the increasing demand for fault-tolerant facilities that ensure minimal downtime and maximum efficiency. Major players like EcoDataCenter, Equinix Inc., and STACK Infrastructure have established Tier 4 certified facilities in the country, with EcoDataCenter's mega facility in Falun leading the segment with an 80 MW capacity. The segment's growth is further supported by Sweden's favorable climate conditions and access to renewable energy sources, making it an attractive location for high-reliability data center operations.

Tier 3 Segment in Swedish Data Center Market

The Tier 3 data center Nordics segment represents a significant portion of the Swedish data center market, offering a balance between reliability and cost-effectiveness. These facilities provide N+1 redundancy and 72-hour power outage protection, making them suitable for businesses requiring high availability without the premium costs associated with Tier 4 facilities. Stockholm hosts the majority of Tier 3 data centers, with approximately 73% of these facilities concentrated in the capital region. Leading operators like Interxion (Digital Realty Trust Inc.), Bahnhof, and Inleed have established multiple Tier 3 facilities across the country, catering to the growing demand from various industry verticals.

Remaining Segments in Tier Type Market

The Tier 1 and Tier 2 segments represent a small portion of the Swedish data center market, primarily serving basic computing needs and non-critical applications. These facilities offer fundamental infrastructure with basic redundancy levels and are typically chosen by small businesses or organizations with less demanding uptime requirements. However, the market is witnessing a gradual shift away from these lower-tier facilities as businesses increasingly prioritize reliability and uptime guarantees, leading to a preference for higher-tier data centers that offer better redundancy and operational efficiency.

Segment Analysis: By Absorption

Utilized Segment in Swedish Data Center Market

The utilized segment dominates the Swedish data center market, commanding approximately 77% market share in 2024, driven by increasing digitalization initiatives and robust demand from various end-user industries. This segment's strong performance is attributed to Sweden's thriving ICT industry, which employs about 6.1% of the population twice the European Union average. The country's renowned startup ecosystem, producing global tech brands, has been a significant contributor to the high utilization rates. The segment is projected to maintain its growth trajectory at around 8% annually from 2024 to 2029, supported by the cloud segment as the primary contractor of data center services, followed by the telecom segment. The Swedish government's implementation of the "Going Digital" strategy, focusing on digital literacy, security, innovation, leadership, and infrastructure, has created a strong foundation for sustained growth in data center utilization. Additionally, the presence of more than 30 test beds focused on artificial intelligence, cloud computing, Internet of Things, advanced robotics, 5G/6G, gamification, IT security, factory connectivity, mobility tech, and remote learning has further strengthened the segment's position in the market.

Non-Utilized Segment in Swedish Data Center Market

The non-utilized segment of the Swedish data center market represents the available capacity that remains unused, serving as a strategic reserve for future expansion and demand fluctuations. This segment plays a crucial role in ensuring that data center operators can quickly respond to sudden increases in demand without compromising service quality. The segment's size reflects the market's maturity and operators' strategic planning in maintaining optimal data center capacity utilization while ensuring business continuity. Data center operators in Sweden are implementing sophisticated capacity management systems and predictive analytics to optimize the balance between utilized and non-utilized capacity. The presence of non-utilized capacity also enables data center operators to accommodate rapid scaling requirements from existing clients and new market entrants, particularly in emerging technology sectors. This strategic approach to capacity management has been particularly important in Stockholm, which serves as the primary hotspot for data center operations in Sweden.

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