Danish Data Center Industry has published its annual market report Danish Data Center Market 2024 – Trends, Investment Analysis & Growth Opportunities. The report highlights the need for futureproofing Denmark’s grid in order reach the full potential of AI and digitalization.
According to the report, Denmark continues to be an attractive hub for data center investments, not in least due to high power security and ambitious plans to invest in renewables and grid development. The colocation segment has been growing steadily in Denmark and is expected to increase significantly over the next few years.
“As a country we are facing unique potential for growth and innovation. We are ready to realize this potential in cooperation with many good partners from the energy sector, government authorities, and our own industry,” explains Merima Dzanic, Head of Strategy & Operations of the Danish Data Center Industry, who authored the report this year.
AI and cloud workloads are significantly changing datacenter design and operations
Projections show Denmark's use of data, and thus power, will increase in the coming years. Higher density workloads from AI as well as innovative new chip designs are placing higher demand on cooling systems, placing increased pressure on energy usage and energy efficiency.
The projected growth of data usage from AI workloads, combined with the ambitious goals for digitalization of our society, indicate that Denmark’s need for reliable, sustainable power will continue to rise in coming years.
Investment trends: Rising costs and AI uncertainty may cause supply chain bottlenecks
On some parameters, 2023 has been a challenging year for new investments. Rising prices on technical equipment and building costs have made data center buildouts more costly and complex, causing total cost of ownership to rise.
Uncertainty regarding AI, upcoming EU regulation and changing business models, has pushed back some investments and build-out plans, with many 2023 pipelines being pushed to late 2024.
In addition, companies continue to meet challenges when it comes to balancing sustainability and ESG with future IT needs. Meanwhile, the full impact of EED on the market is yet to be seen.
Realizing the potential for AI and digitalization requires accompanying digital infrastructure
The Danish Data Center Industry association sees the report as a call to action for the industry, politicians, and the energy sector.
Henrik Hansen, CEO of the Danish Data Center Industry explains: “A digitalized society requires that we futureproof our energy systems. Digitization requires and generates data, and data requires infrastructure in the form of data centers. By working together, we can future-proof Denmark’s grid, while realizing the full potential of AI and digitalization.”
Get access to the full report
Read more details about the state of the Danish Data Center industry market in the new report: Danis Data Center Market 2024: Trends, investment analysis and growth opportunities.
The market report is available now for members of DDI.
The market report is available for purchase here.
For further information, please contact:
Merima Dzanic, Head of Strategy & Operations, DDI
merima@datacenterindustrien.dk // +45 20 15 50 21
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