Data Center Construction Market in the Nordic Region 2017-2021
About Data Center Construction
Data centers are data storage and processing solutions that are either physical/ virtual or remote location-based facilitating enterprises to enhance their operations. The increase in the use of big data analytics, cloud-based services, and the Internet of things (IoT) has aided the growth in the construction of data centers worldwide. In terms of data center operations, the US is the largest country, followed by the European countries such as the UK and Germany.
Technavio’s analysts forecast the data center construction market in the Nordic region to grow at a CAGR of 16.72% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the data center construction market in the Nordic region for 2017-2021. To calculate the market size, the report considers the revenue generated from the investments made in new data centers.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Data Center Construction Market in the Nordic Region 2017-2021
Technavio recognizes the following companies as the key players in the data center construction market in the Nordic region: AECOM, Arup Associates, DPR Construction, Mercury, NCC, and Skanska.
Other Prominent Vendors in the market are: Coromatic, Enaco Sverige, MDC Stockholm, Nordisk Kombination Arkitekter, Rittal, Schneider Electric, SRV Group, and Sweco.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is adoption of energy-efficient infrastructure. Data center vendors have witnessed many innovations over the past decade regarding the adoption of efficient infrastructure. The adoption of density-optimized servers and storage infrastructure is gaining traction. Hard disk drive (HDD) arrays are being replaced with solid state drive (SSD) arrays that reduce the amount of energy consumed by the infrastructure.”
According to the report, one of the major drivers for this market is Reduction in OPEX. One of key advantage of constructing data centers in the Nordic region is lower OPEX, as the free cooling helps in reducing the power consumption required for cooling the data center facilities. Free cooling techniques reduce OPEX of a data center to almost 40% in terms of cooling needs. In addition, use of modern infrastructure that is energy-efficient reduces the OPEX of the data center to a great extent. Data centers in this region are established to operate at the PUE of less than 1.30 that are of Tier 3 and Tier 4 standards. Even though the requirement of these data centers is growing, Nordic is still considered to be a suitable region for data center construction by global as well as local European data center providers.
Further, the report states that one of the major factors hindering the growth of this market is Lack of construction and operational expertise. The number of data centers in the Nordic region is increasing rapidly. The increasing construction of facilities aids in the growth of job opportunities in the country. Currently, skilled labor availability is low in this region, which in turn, increases the cost of labor. However, the construction of facilities by global organization brings in the expertise from off-site areas that aids in the establishment of efficient facilities.
AECOM, Arup Associates, DPR Construction, Mercury, NCC, Skanska, Coromatic, Enaco Sverige, MDC Stockholm, Nordisk Kombination Arkitekter, Rittal, Schneider Electric, SRV Group, and Sweco.