Finland Data Center Market - Investment Analysis & Growth Opportunities 2024–2029

MARKET OUTLOOK

The Finland data center market will witness investments of USD 1.93 billion by 2029, growing at a CAGR of 29.12% during the forecast period. Finland is one of the prominent locations in the Nordic region; the country is actively adopting district heating systems through its data centers aided by government support. For instance, Helen, an energy company based in Finland, and Elisa, a telecommunication operator, closed a deal to initiate waste heat recovery from Elisa’s data center, which will be transferred for use in Helsinki's heat businesses and homes. Furthermore, the country accounts for strong connectivity through submarine cables, with around 11 cables connecting the market with other countries and regions and one upcoming cable currently being deployed. Also, Finland has free economic zones, such as the Free Zone of Lappeenranta and the Freeport of Hanko, which benefit industrial and enterprise investments with tax incentives.

The Finland data center market is one of the emerging data center markets in the Nordic region, driven by increasing digitalization and AI adoption across various sectors such as healthcare, BFSI, education, transportation, and logistics. The demand for data centers in Finland is expected to rise in the coming years. Also, to attract investors, the Finnish government provides tax incentives. Notably, Finland's corporate income tax rate of 20 percent is the lowest in the Nordics and among the lowest in the EU.

The IoT market is growing across the healthcare and automotive sectors. The continued development of the wireless network space is expected to boost the growth of the IoT and data center markets during the forecast period. The demand for hybrid infrastructure services will emerge as a strong driver for the data center market growth over the next few years. Furthermore, organizations in Finland are among the highest users of cloud-based services, which include SaaS applications. The adoption of PaaS and IaaS applications is growing rapidly in the country.

KEY HIGHLIGHTS

• Finland’s data center market is ideal for development due to its low latency connectivity, high-speed data networks, political stability, and dependable power grid. The country has been witnessing increased investments from colocation and hyperscale data center providers, contributing to the growth of the Finland data center market.
• The country is increasingly investing in renewable energy. Data center operators are procuring renewable energy for their data centers to achieve their sustainability goals. By 2035, the country will use renewable energy to meet its carbon neutrality goals.
• Cloud service providers are likely to enter the country with new data center regions. Operators like Microsoft plan to build a data center region in Finland. The country plans to move most of the public and private sector workloads to the cloud.
• Investing in Finland's tech market can be profitable due to its growing digital infrastructure. The Finland data center market hosts approximately 20 facilities, making it attractive for colocation and enterprise data centers. The government's investments in 5G technology and Artificial Intelligence through initiatives like the Finnish Center for Artificial Intelligence (FCAI) demonstrate a commitment to technological advancements.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size is available in terms of investment, area, power capacity, and Finland colocation market revenue.
• An assessment of the data center investment in Finland by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• This report details a detailed study of the existing Finnish data center market landscape, provides in-depth market analysis, and makes insightful predictions about industry size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Finland
  • Facilities Covered (Existing): 20
  • Facilities Identified (Upcoming): 04
  • Coverage: 8+ Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Finland
  • Colocation Market Revenue & Forecast (2020-2029)
  • Retail & Wholesale Colocation Pricing
• The Finland data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• Some key colocation investors in the Finland data center market include Equinix, Elisa, Ficolo, Telia Finland, Herman IT, atNorth, and others.
• The Finland data center market has a strong presence from global support infrastructure vendors such as ABB, Airedale, Caterpillar, Cummins, Delta Electronics, Eaton, Legrand, Rittal, Schneider Electric, STULZ, and others. This has resulted in heightened competitiveness in the infrastructure offerings and solutions available.
• The Finland data center market has several local and global construction contractors operating, including Fluor Corporation, AFRY, Granlund Group, and others, offering their services. For instance, Kirby Engineering Group was involved in constructing a hyperscale data center in Hamina, Finland.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Helsinki
  • Other Cities
• List of Upcoming Facilities in the Region (Area and Power Capacity)
  • Helsinki
  • Other Cities

REPORT COVERAGE:

This report analyses the Finland data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV

VENDOR LANDSCAPE

• IT Infrastructure Providers: Atos, Cisco Systems, Dell Technologies, Extreme Networks, Hewlett Packard Enterprise, Huawei Technologies, IBM, Juniper Networks, NEC, Oracle
• Data Center Construction Contractors & Sub-Contractors: Afry, Fluor Corporation, Granlund Group, Kirby Engineering Group, Parviainen Arkkitehdit, RED, Ramboll, Royal HaskoningDHV.
• Support Infrastructure Providers: ABB, Airedale, Caterpillar, Cummins, Delta Electronics, Eaton, HITEC Power Protection, Legrand, Rittal, Schneider Electric, STULZ, Trane, Vertiv.
• Data Center Investors: Elisa, Equinix, Google, Herman IT, Telia Finland, Verna Global.
• New Entrants: atNorth, Hyperco, Microsoft, STORESPEED.