Market Trends of Sweden Data Center Power Industry
The IT & Telecommunication Segment Holds the Major Share
- The cloud segment is Sweden's primary contractor of data center services, followed by the telecom segment. 5G connections in Swedish were estimated to account for 6.2% of the country's overall mobile connections by 2021. Operators in Sweden are investing in their networks to expand 5G coverage, with plans to offer 5G to over 90% of the population by 2023. Such developments are increasing the need for high computation facilities in the country, which is expected to boost the market during the forecast period.
- Improved device capabilities, increased data-intensive content, and increased data consumption due to ongoing network performance improvements are the significant causes of the growth in mobile data traffic per smartphone. For instance, the number of Facebook users was 7.9 million in 2021, and it increased to 8.9 million in 2023, which accounted for 84.4% of the population. Instagram users increased from 5.03 million (2021) to 6.06 million (2022). The Swedish Association of Local Authorities and Regions (SALAR) also developed a vision for a Swedish e-health strategy that invests USD 1.21 billion annually in healthcare IT.
- Smartphone users in Sweden are increasing, and connectivity is growing nationwide. For instance, operators focus on 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 equivalent to its 4G network by working with longtime partner Ericsson. In the long run, this is expected to be extended to 90% geographic and more than 99% population coverage.
- An increase in demand for data consumption by households and businesses drives the growth of broadband connectivity in Sweden. Owing to the growing demand for broadband connectivity, government initiatives impetus the development of connectivity.
- Further, extensive use of wireless devices and growing connections to the internet are increasing the demand for online cloud platforms. The growing inclusion of devices such as computers in digital penetration, which rose from 89.72% in 2017 to 94.36% in 2023, has increased data traffic over broadband channels, further substantiating the growth of cloud computing services. Such factors are expected to increase the demand for data processing and storage facilities in the cloud segment of the market.
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Monitored PDU Holds Significant Share in the Market
- Sweden is a connected country with strong digital readiness and 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 2023, Sweden had the fastest 5G median download speed in the Nordic region, partially due to the country's digitalization strategy. The above factors result in a huge demand for data centers and a rise in power consumption. Thus, the growing demand for data storage has led to the deployment of intelligent power distribution units (PDUs) against simple multi-socket rack installations with server and network equipment, which optimize power consumption in data centers.
- Monitored rack PDUs are essential components in data center and server room infrastructure. They provide real-time monitoring of power usage, voltage, current, and other electrical parameters. This data helps administrators make informed decisions about power allocation and capacity planning.
- By tracking power usage trends, administrators can plan for future growth and ensure that power capacity is not exceeded, preventing overloads that could lead to equipment failures. It also helps identify inefficiencies and optimize energy usage. Eliminating unnecessary power consumption can lead to cost savings and a reduced environmental footprint. Also, it allows administrators for remote access and control, reducing the need for physical presence and minimizing operational disruptions.
- Key players focused on introducing energy-efficient products into the market because of the above advancements and the necessity to reduce electricity consumption in the country. In May 2023, Eaton, which provides the power management service, launched G3 Universal Input Rack PDUs with dynamic C39 outlets capable of accommodating different plug configurations and input voltage requirements. To meet diverse data center rack power requirements, G3UPDU has introduced new features.
- In May 2023, Legrand, a significant global provider of electrical and digital building infrastructures, introduced the next generation of intelligent rack PDUs, PRO4X, and Raritan PX4. These new intelligent rack PDU designs revolutionize capacity planning, environmental monitoring, physical and digital access control, workload optimization, and uptime initiatives. Such developments are predicted to boost market growth during the forecast period.
