Denmark Data Center Market Size and Share

Denmark Data Center Market (2025 - 2030)

Denmark Data Center Market Analysis by Mordor Intelligence

Denmark Data Center Market size is estimated at USD 1.68 billion in 2025, and is expected to reach USD 2.93 billion by 2030, at a CAGR of 11.77% during the forecast period (2025-2030). In terms of the IT load capacity, the market is expected to grow from 556.10 megawatts in 2025 to 896.90 megawatts by 2030, at a CAGR of 10.03% during the forecast period (2025-2030). The market segment shares and estimates are calculated and reported in terms of MW. Rapid renewable-power deployment, 5G ubiquity, subsea cable landings, and fast-track permitting together create a virtuous cycle that draws global hyperscale and AI workloads to Denmark. Hyperscale operators capitalize on 95% very-high-capacity network coverage and 98% 5G coverage to position the country as a Nordic gateway for latency-sensitive cloud traffic. Robust corporate power-purchase-agreement activity and heat-reuse mandates underpin long-term sustainability commitments, while public–private investments such as the Gefion AI supercomputer showcase Denmark’s ability to host high-density infrastructure. Grid constraints and strict excess-heat price caps temper the outlook, yet policy tools continue to counterbalance these headwinds.

Key Report Takeaways

  • By data center size, massive facilities led with a 39.53% capacity share in 2024 in the Denmark data center market and are expanding at a 12.40% CAGR through 2030, underscoring hyperscale consolidation.
  • By tier standard, Tier 3 installations captured 50.21% of the 2024 base in n the Denmark data center market, whereas Tier 4 deployments record the fastest 10.90% CAGR as AI workloads demand higher fault tolerance. 
  • By data center type, hyperscale and self-built sites held 60.54% share in 2024 in n the Denmark data center market while posting an 11.90% CAGR, reflecting the dominance of cloud and AI providers.
  • By end user industry, IT and telecom accounted for 60.74% of 2024 capacity in n the Denmark data center market, but BFSI is advancing at an 11.18% CAGR on the back of fintech digitalization and regulatory compliance.
  • By hotspot, Copenhagen retained 51.43% capacity in 2024 in n the Denmark data center market, yet the rest of Denmark is progressing at a 12.50% CAGR because of lower land costs and proximity to renewable generation.

Segment Analysis

By Data Center Size: Massive Facilities Drive Hyperscale Consolidation

Massive sites held 39.53% of Denmark data center market share in 2024 and will compound at 12.40% through 2030 as operators chase scale efficiencies. The Denmark data center market size for massive facilities is set to expand by 250 MW over the forecast horizon, anchored by atNorth’s 250 MW DEN02 campus in Ølgod. These projects use economies of scale to absorb compliance and sustainability costs more effectively than medium sites. 

Consolidation pressures will intensify as hyperscale buyers lock in capacity years ahead, leaving smaller facilities to specialize in edge or regulated workloads. NIS2 costs dilute margins for sub-50 MW operators, accelerating mergers or closures. However, edge services and content-delivery nodes will still need local footprints, giving agile providers a niche within an otherwise scale-driven Denmark data center market.

Denmark Data Center Market: Market Share by Data Center Size

Note: Segment shares of all individual segments available upon report purchase

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By Tier Standard: Tier 4 Acceleration Reflects AI Workload Requirements

Tier 3 accounted for 50.21% of 2024 capacity, yet Tier 4 posts a 10.90% CAGR through 2030 as AI and BFSI applications demand 99.995% uptime.[4]Danish Standards Foundation, “Danish Standards,” ds.dk Denmark data center market size allocated to Tier 4 will rise sharply after Gefion set a reliability precedent for research supercomputing. 

Redundant feeds, dual-powered chillers, and fault-tolerant architectures attract premium pricing and justify long-term corporate PPAs. SMEs and dev-test use cases still fit Tier 2, but the strategic growth axis clearly favors higher tiers that can guarantee compliance with stringent digital-service-provider rules under NIS2.

By Data Center Type: Hyperscale Dominance Accelerates Through AI Adoption

Hyperscale and self-built facilities commanded 60.54% of the Denmark data center market in 2024 and are increasing at 11.90% CAGR as cloud majors deepen Nordic footprints. Denmark data center market size devoted to hyperscale is projected to add 340 MW by 2030, even after Meta’s pause in Odense signaled occasional strategy shifts. 

Colocation is evolving toward wholesale suites as enterprise clients favor reserved capacity but prefer not to own real estate. GDPR and national-sovereignty clauses drive onshore hosting demand, enabling regional operators to secure regulated workloads even as the overall market growth centers on hyperscale.

Denmark Data Center Market: Market Share by Data Center Type

Note: Segment shares of all individual segments available upon report purchase

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By End User Industry: BFSI Emerges as Fastest-Growing Segment

IT and telecom retained 60.74% share in 2024, yet BFSI climbs at 11.18% CAGR as fintech services, open-banking APIs, and RegTech analytics swell data volumes. Denmark data center market share for BFSI is expected to approach double-digits by 2030. 

Life sciences and government also present rising demand because AI-enabled drug discovery and e-government platforms require sovereign, high-performance hosting. Content streaming leverages subsea routes for low-latency distribution, adding incrementally to overall utilization.

Geography Analysis

Copenhagen owns a slight majority of national capacity because subsea cables such as HAVFRUE deliver direct North American traffic, and the capital hosts most BFSI cores. Yet real-estate premiums and grid constraints limit additional hyperscale campuses in the metropolitan ring. Digital Realty’s Gefion deployment illustrates that high-density AI clusters can still flourish where dark-fibers converge, provided renewable PPAs offset carbon footprints.

Western Denmark, notably Jutland, captures outsized growth because vast onshore wind farms and abundant land lower total cost of ownership. atNorth’s 250 MW DEN02 is emblematic: proximity to both 400 kV lines and district heating networks allows the operator to monetize surplus heat while securing low-carbon power. Energy-island transmission corridors will reinforce this shift by granting near-direct access to 10 GW offshore capacity, making Jutland a preferred site for the next wave of Denmark data center market investments.

Rest-of-country diversification is further aided by TDC NET’s fiber backbone, which levels latency across regions and allows edge clusters in Odense, Aalborg, and Esbjerg to serve localized 5G traffic. Fast-track industrial-park zoning encourages municipalities to earmark grid-served parcels for digital infrastructure, ensuring that the Denmark data center market evolves into a balanced national grid rather than a single-city cluster.

Competitive Landscape

Competition is moderate, with global hyperscalers and regional specialists sharing the field. Apple, Google, Microsoft, and Meta anchor self-built campuses and long-term renewable PPAs, leveraging deep capital reserves to absorb compliance and sustainability spend. atNorth, Digital Realty, and GlobalConnect differentiate through local regulatory knowledge and heat-reuse engineering, enabling them to win wholesale and high-performance compute contracts. TDC NET leverages telecom assets and district heat exports, providing a sustainability narrative that resonates with corporate ESG targets.

M&A activity is expected to rise as NIS2 and grid upgrade costs prompt sub-20 MW operators to consider scale partnerships. Technology roadmaps pivot to liquid cooling and 100% fossil-free power procurement, areas where first movers already hold an edge. Quantum-secure interconnect pilots mark an emerging niche, and operators that can integrate post-quantum encryption alongside AI accelerators will capture premium BFSI and life sciences demand.

Barriers to entry include the Danish Investment Screening Act’s mandatory clearance for critical infrastructure investments exceeding DKK 100 million, as well as district-heat obligations that require upfront CAPEX with constrained revenue ceilings. These factors cement incumbents’ positions while filtering speculative entrants, gradually lifting the average facility scale across the Denmark data center market.

Denmark Data Center Industry Leaders

  1. Apple Inc.

  2. Microsoft Corporation

  3. Google LLC

  4. Cibicom A/S

  5. NNIT A/S

  6. *Disclaimer: Major Players sorted in no particular order
Denmark Data Center Market
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Recent Industry Developments

  • October 2024: Novo Nordisk Foundation activated Gefion, Denmark’s first AI supercomputer, at Digital Realty Copenhagen after a DKK 600 million investment.
  • October 2024: atNorth announced the 250 MW DEN02 campus in Ølgod, Denmark’s largest single data center investment.
  • September 2024: Penta Infra bought a second Copenhagen edge facility to serve metro latency-sensitive workloads.
  • June 2024: Meta paused its USD 342 million Odense expansion amid European portfolio realignment.

Free With This Report

We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.

Denmark Data Center Market
Denmark Data Center Market
Denmark Data Center Market
Denmark Data Center Market

Table of Contents for Denmark Data Center Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Cloud and AI–Driven Hyperscale Expansion
    • 4.2.2 Renewable-Power Advantage and Heat-Reuse Mandates
    • 4.2.3 5G and Nationwide FTTP Enabling Edge Demand
    • 4.2.4 Government Tax Incentives and Fast-Track Permitting
    • 4.2.5 Subsea Cable Landings Boosting International Connectivity
    • 4.2.6 Corporate PPAs Driving Green-Powered Colocation
  • 4.3 Market Restraints
    • 4.3.1 Looming Grid Capacity Deficit and Offshore Wind Delays
    • 4.3.2 Strict Excess-Heat Price-Cap Rules Limiting ROI
    • 4.3.3 Scarcity of Data-Center Skilled Labour
    • 4.3.4 Rising Land Prices in Greater Copenhagen
  • 4.4 Market Outlook
    • 4.4.1 IT Load Capacity
    • 4.4.2 Raised Floor Space
    • 4.4.3 Colocation Revenue
    • 4.4.4 Installed Racks
    • 4.4.5 Rack Space Utilization
    • 4.4.6 Submarine Cable
  • 4.5 Key Industry Trends
    • 4.5.1 Smartphone Users
    • 4.5.2 Data Traffic Per Smartphone
    • 4.5.3 Mobile Data Speed
    • 4.5.4 Broadband Data Speed
    • 4.5.5 Fiber Connectivity Network
    • 4.5.6 Regulatory Framework
  • 4.6 Value Chain and Distribution Channel Analysis
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (MEGAWATT)

  • 5.1 By Data Center Size
    • 5.1.1 Large
    • 5.1.2 Massive
    • 5.1.3 Medium
    • 5.1.4 Mega
    • 5.1.5 Small
  • 5.2 By Tier Standard
    • 5.2.1 Tier 1 and 2
    • 5.2.2 Tier 3
    • 5.2.3 Tier 4
  • 5.3 By Data Center Type
    • 5.3.1 Hyperscale / Self-Built
    • 5.3.2 Enterprise / Edge
    • 5.3.3 Colocation
    • 5.3.3.1 Non-Utilized
    • 5.3.3.2 Utilized
    • 5.3.3.2.1 Retail Colocation
    • 5.3.3.2.2 Wholesale Colocation
  • 5.4 By End User Industry
    • 5.4.1 BFSI
    • 5.4.2 IT and ITES
    • 5.4.3 E-Commerce
    • 5.4.4 Government
    • 5.4.5 Manufacturing
    • 5.4.6 Media and Entertainment
    • 5.4.7 Telecom
    • 5.4.8 Other End Users
  • 5.5 By Hotspot
    • 5.5.1 Copenhagen
    • 5.5.2 Rest of Denmark

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Apple Inc.
    • 6.4.2 Microsoft Corporation
    • 6.4.3 Google LLC
    • 6.4.4 Meta Platforms Inc.
    • 6.4.5 Digital Realty Trust Inc.
    • 6.4.6 STACK Infrastructure, Inc.
    • 6.4.7 GlobalConnect A/S
    • 6.4.8 atNorth ehf
    • 6.4.9 Cibicom A/S
    • 6.4.10 Fuzion A/S
    • 6.4.11 NNIT A/S
    • 6.4.12 Bulk Infrastructure Group AS
    • 6.4.13 Telia Company AB
    • 6.4.14 CenterServ Global

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-Space and Unmet-Need Assessment
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List of Tables & Figures

  1. Figure 1:  
  2. VOLUME OF IT LOAD CAPACITY, MW, DENMARK, 2018 - 2030
  1. Figure 2:  
  2. VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), DENMARK, 2018 - 2030
  1. Figure 3:  
  2. VALUE OF COLOCATION REVENUE, USD MILLION, DENMARK, 2018 - 2030
  1. Figure 4:  
  2. VOLUME OF INSTALLED RACKS, NUMBER, DENMARK, 2018 - 2030
  1. Figure 5:  
  2. RACK SPACE UTILIZATION, %, DENMARK, 2018 - 2030
  1. Figure 6:  
  2. COUNT OF SMARTPHONE USERS, IN MILLION, DENMARK, 2018 - 2030
  1. Figure 7:  
  2. DATA TRAFFIC PER SMARTPHONE, GB, DENMARK, 2018 - 2030
  1. Figure 8:  
  2. AVERAGE MOBILE DATA SPEED, MBPS, DENMARK, 2018 - 2030
  1. Figure 9:  
  2. AVERAGE BROADBAND SPEED, MBPS, DENMARK, 2018 - 2030
  1. Figure 10:  
  2. LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, DENMARK, 2018 - 2030
  1. Figure 11:  
  2. VOLUME OF IT LOAD CAPACITY, MW, DENMARK, 2018 - 2030
  1. Figure 12:  
  2. VOLUME OF HOTSPOT, MW, DENMARK, 2018 - 2030
  1. Figure 13:  
  2. VOLUME SHARE OF HOTSPOT, %, DENMARK, 2018 - 2030
  1. Figure 14:  
  2. VOLUME SIZE OF COPENHAGEN, MW, DENMARK, 2018 - 2030
  1. Figure 15:  
  2. VOLUME SHARE OF COPENHAGEN, MW, HOTSPOT, %, DENMARK, 2018 - 2030
  1. Figure 16:  
  2. VOLUME SIZE OF REST OF DENMARK, MW, DENMARK, 2018 - 2030
  1. Figure 17:  
  2. VOLUME SHARE OF REST OF DENMARK, MW, HOTSPOT, %, DENMARK, 2018 - 2030
  1. Figure 18:  
  2. VOLUME OF DATA CENTER SIZE, MW, DENMARK, 2018 - 2030
  1. Figure 19:  
  2. VOLUME SHARE OF DATA CENTER SIZE, %, DENMARK, 2018 - 2030
  1. Figure 20:  
  2. VOLUME SIZE OF LARGE, MW, DENMARK, 2018 - 2030
  1. Figure 21:  
  2. VOLUME SIZE OF MASSIVE, MW, DENMARK, 2018 - 2030
  1. Figure 22:  
  2. VOLUME SIZE OF MEDIUM, MW, DENMARK, 2018 - 2030
  1. Figure 23:  
  2. VOLUME SIZE OF MEGA, MW, DENMARK, 2018 - 2030
  1. Figure 24:  
  2. VOLUME SIZE OF SMALL, MW, DENMARK, 2018 - 2030
  1. Figure 25:  
  2. VOLUME OF TIER TYPE, MW, DENMARK, 2018 - 2030
  1. Figure 26:  
  2. VOLUME SHARE OF TIER TYPE, %, DENMARK, 2018 - 2030
  1. Figure 27:  
  2. VOLUME SIZE OF TIER 1 AND 2, MW, DENMARK, 2018 - 2030
  1. Figure 28:  
  2. VOLUME SIZE OF TIER 3, MW, DENMARK, 2018 - 2030
  1. Figure 29:  
  2. VOLUME SIZE OF TIER 4, MW, DENMARK, 2018 - 2030
  1. Figure 30:  
  2. VOLUME OF ABSORPTION, MW, DENMARK, 2018 - 2030
  1. Figure 31:  
  2. VOLUME SHARE OF ABSORPTION, %, DENMARK, 2018 - 2030
  1. Figure 32:  
  2. VOLUME SIZE OF NON-UTILIZED, MW, DENMARK, 2018 - 2030
  1. Figure 33:  
  2. VOLUME OF COLOCATION TYPE, MW, DENMARK, 2018 - 2030
  1. Figure 34:  
  2. VOLUME SHARE OF COLOCATION TYPE, %, DENMARK, 2018 - 2030
  1. Figure 35:  
  2. VOLUME SIZE OF HYPERSCALE, MW, DENMARK, 2018 - 2030
  1. Figure 36:  
  2. VOLUME SIZE OF RETAIL, MW, DENMARK, 2018 - 2030
  1. Figure 37:  
  2. VOLUME SIZE OF WHOLESALE, MW, DENMARK, 2018 - 2030
  1. Figure 38:  
  2. VOLUME OF END USER, MW, DENMARK, 2018 - 2030
  1. Figure 39:  
  2. VOLUME SHARE OF END USER, %, DENMARK, 2018 - 2030
  1. Figure 40:  
  2. VOLUME SIZE OF BFSI, MW, DENMARK, 2018 - 2030
  1. Figure 41:  
  2. VOLUME SIZE OF CLOUD, MW, DENMARK, 2018 - 2030
  1. Figure 42:  
  2. VOLUME SIZE OF E-COMMERCE, MW, DENMARK, 2018 - 2030
  1. Figure 43:  
  2. VOLUME SIZE OF GOVERNMENT, MW, DENMARK, 2018 - 2030
  1. Figure 44:  
  2. VOLUME SIZE OF MANUFACTURING, MW, DENMARK, 2018 - 2030
  1. Figure 45:  
  2. VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, DENMARK, 2018 - 2030
  1. Figure 46:  
  2. VOLUME SIZE OF TELECOM, MW, DENMARK, 2018 - 2030
  1. Figure 47:  
  2. VOLUME SIZE OF OTHER END USERS, MW, DENMARK, 2018 - 2030
  1. Figure 48:  
  2. VOLUME SIZE OF OTHERS END USER, MW, DENMARK, 2018 - 2030
  1. Figure 49:  
  2. VOLUME SHARE OF MAJOR PLAYERS, %, DENMARK

Denmark Data Center Market Report Scope

Copenhagen are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.
By Data Center Size
Large
Massive
Medium
Mega
Small
By Tier Standard
Tier 1 and 2
Tier 3
Tier 4
By Data Center Type
Hyperscale / Self-Built
Enterprise / Edge
Colocation Non-Utilized
Utilized Retail Colocation
Wholesale Colocation
By End User Industry
BFSI
IT and ITES
E-Commerce
Government
Manufacturing
Media and Entertainment
Telecom
Other End Users
By Hotspot
Copenhagen
Rest of Denmark
By Data Center Size Large
Massive
Medium
Mega
Small
By Tier Standard Tier 1 and 2
Tier 3
Tier 4
By Data Center Type Hyperscale / Self-Built
Enterprise / Edge
Colocation Non-Utilized
Utilized Retail Colocation
Wholesale Colocation
By End User Industry BFSI
IT and ITES
E-Commerce
Government
Manufacturing
Media and Entertainment
Telecom
Other End Users
By Hotspot Copenhagen
Rest of Denmark
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Market Definition

  • IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
  • ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
  • RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
  • DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
  • TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
  • COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
  • END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
Keyword Definition
Rack Unit Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches.
Rack Density It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning.
IT Load Capacity The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW).
Absorption Rate It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity.
Raised Floor Space It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter.
Computer Room Air Conditioner (CRAC) It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center.
Aisle It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle.
Cold Aisle It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature.
Hot Aisle It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC.
Critical Load It includes the servers and other computer equipment whose uptime is critical for data center operation.
Power Usage Effectiveness (PUE) It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient.
Redundancy It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected.
Uninterruptible Power Supply (UPS) It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only.
Generators Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption.
N It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure.
N+1 Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required.
2N It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center.
In-Row Cooling It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature.
Tier 1 Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours.
Tier 2 A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours.
Tier 3 A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours.
Tier 4 It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes.
Small Data Center Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center.
Medium Data Center Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center.
Large Data Center Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center.
Massive Data Center Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center.
Mega Data Center Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center.
Retail Colocation It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs).
Wholesale Colocation It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises.
Hyperscale Colocation It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+).
Mobile Data Speed It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest.
Fiber Connectivity Network It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km).
Data Traffic per Smartphone It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB).
Broadband Data Speed It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable.
Submarine Cable A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another.
Carbon Footprint It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities.
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Research Methodology

Mordor Intelligence follows a four-step methodology in all our reports.

  • Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
  • Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
  • Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
  • Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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