The Swedish Data Centre Market is Exploding: Here’s Why

Now an immensely popular data centre location in the Nordic region, Sweden is currently undergoing a period of rapid growth, according to Research and Markets.

A recent report from the organisation suggests that the country’s data centre market is set to grow significantly, having been valued at US$2bn in 2024. It is now expected to reach heights of US$3.8bn by 2030, with a CAGR of 11.29%.

Currently, Sweden is witnessing a shift from on-premise to cloud and colocation data centres on account of rapid digital transformation across Europe. Key industry figures like Equinix, Digital Realty and AWS continue to drive growth in Stockholm, which Research and Markets says is a central hub in the country.

High demand for data centre services in Sweden is further supported by good government incentives, low climate impact cooling, renewable energy access and major city land cost increases. 

A growing investment opportunity 

The Swedish data centre market is predominantly led by local and global operators such as atNorth, AWS, Bahnhof, Conapto, Digital Realty, EcoDatacentre, Ember, Equinix, Glesys, Google, Meta, Microsoft, Multigrid, Northern Data Group and STACK Infrastructure. 

Research and Markets says these companies have worked to strengthen their operations to support increasing demand driven by digital transformation initiatives across the country. 

Additionally, new entrants such as Evroc, Hive Digital Technologies, STORESPEED and T.Loop are making significant investments in the market.

The major global cloud service providers in the Swedish data centre market, Facebook (Meta), Amazon Web Services (AWS), Oracle and Microsoft, are working to close the IT skills gap across the region, providing access to skilled labour and innovation. 

According to Research and Markets, the natural climate advantage of Sweden is being used by all of these companies to promote data centre operations. Notably, the country’s cooler climate offers operators the opportunity to enact free cooling and heat reuse initiatives. 

Tech giants are also expanding in the region, with Google planning three availability zones in Stockholm for example.

In March 2025, Google launched its new cloud region outside Stockholm, named Europe-north2, marking its 42nd global and 13th European region. The launch reflects a major investment in Sweden's digital infrastructure, with key customers including IKEA, Nordnet, and Tradera. The company has also committed to sustainability in the region through long-term wind energy agreements totalling over 700MW.

The impact of increasing digitalisation

The reliance on digital infrastructure across Europe is growing, which is attracting cloud service providers from the US. 

With this in mind, the government of Sweden is actively supporting this growth by implementing measures like tax incentives and simplified permit processes for data centres. 

This has created a favourable environment for the digital economy, with Research and Markets saying some of the government incentives include the establishment of free zones with incentives, including tax benefits enhancing the attractiveness of investments in the Sweden data centre market.

Also eager to capitalise on increasing digital transformation, telecom operators like Telia and Ericsson are the major telecom operators that have launched commercial 5G services across the country. 

Building a shift in the data centre market

As of December 2024, the total core and shell power capacity of third-party data centres in the Sweden data centre market was approximately 160.8MW, Research and Markets says. Likewise, more than 150MW is currently under construction or in the planned stages. 

Once all these data centres become operational within the next 1-2 years, the report says that total power capacity is expected to increase substantially.

Notably across Sweden, there has been a significant shift from on-premises data centres towards cloud and colocation data centres in the country’s data centre market. This has been accelerated dramatically in recent years on account of increasing digitalisation, with Swedish enterprises depending on managed service offerings rather than standalone colocation services. 

Stockholm also witnessed a significant addition of data centre capacity, driven by the increasing demand for cloud, colocation and digital services.

The report also suggests that commercial land cost in major cities of Sweden has risen continuously over recent years. Cities, including Stockholm, witnessed a rapid rise in prime rents for commercial properties. In Q4 2024, prime rents in Stockholm reached US$1,000 per square metre.