Denmark Data Center Market Size
Denmark Data Center Market Analysis
The Denmark Data Center Market size is estimated at 267.9 MW in 2025, and is expected to reach 390.4 MW by 2030, growing at a CAGR of 7.82%. Further, the market is expected to generate colocation revenue of USD 189.5 Million in 2025 and is projected to reach USD 371.9 Million by 2030, growing at a CAGR of 14.44% during the forecast period (2025-2030).
Denmark's data center industry is undergoing a significant transformation driven by sustainability initiatives and green energy adoption. The country's commitment to environmental sustainability is reflected in its Climate Agreement for Energy and Industry, which emphasizes renewable energy integration and efficiency improvements. The Danish Council on Climate Change has advocated for the establishment of new offshore wind farms specifically to power data centers, aligning with the national target of achieving 55% renewable energy by 2030. Data center operators are increasingly implementing innovative cooling solutions, as demonstrated by GlobalConnect's pioneering deployment of immersion cooling technology in 2023, which can reduce cooling power consumption by up to 90%.
The market is experiencing substantial infrastructure development and expansion across various regions. In February 2023, Prime Data Centers announced plans for a groundbreaking three-building, 124 MW campus in Saeby, northern Denmark, featuring three three-story buildings across a 27.52-acre campus. The strategic positioning of data centers in Denmark has been enhanced by significant network infrastructure improvements, exemplified by Relined Fiber Network's addition of 5,500 km to its fiber optic network through collaboration with Denmark's national grid operator, Energinet. These developments are supporting the country's position as a key digital hub, with 34 colocation Denmark facilities currently operating across the nation.
Digital transformation across industries is driving increased demand for data center services. The financial sector has shown particularly strong adoption of digital services, with 94.35% of Danish consumers using internet banking as of December 2022. The manufacturing sector is also experiencing significant digital advancement, with investments in Odense robotics enterprises exceeding EUR 1 billion in 2022, creating a unique ecosystem for innovation and technological advancement. This digital transformation is supported by robust internet infrastructure, with the country achieving 99% internet penetration.
The market is characterized by strategic consolidation and expansion activities among key players. Data center operators are focusing on developing larger, more efficient facilities while implementing advanced technologies. The industry is witnessing a shift toward higher-tier facilities, with operators increasingly investing in Tier 3 and Tier 4 data centers to meet growing demands for reliability and performance. These facilities are being designed to support emerging technologies and provide enhanced security features, reflecting the evolving needs of enterprise customers and the growing importance of data sovereignty and compliance requirements.
Denmark Data Center Market Trends
Increasing consumption of data in online shopping, streaming services drives the demand for data processing and storage facilities
- The total data traffic per smartphone in the country was 12.3 GB in 2022, which is expected to reach 28.5 GB by 2029, recording a CAGR of 12.7% during the forecast period.
- The consumption of data by multiple end users motivates this trend. In 2021, almost 70% of online shoppers purchased clothing and sports equipment, illustrating the popularity of fashion e-commerce in Denmark.
- The growing average data volume due to rising OTT subscriptions for smartphones and mobile gaming is further driving the demand for data processing and storage facilities for the live streaming of games and video content. The Danish market saw an 11.8% growth in total consumer spending on video in 2021 compared to 2020. The Danish video market represented a value of more than DKK 4,591 million (EUR 607.8 million) in 2021. OTT subscriptions increased from 2.1 million in 2016 to 5.7 million in 2021. Since the needs of the end users are changing, the demand for more data storage is resulting in the need for more servers in data centers, contributing to the growth of the data center market in Denmark.
Rising smartphone ownership and increase in number of app downloads boost the market growth
- The total number of smartphone users in the country was 5.5 million in 2022, which is expected to reach 5.9 million, recording a CAGR of 1.1% during the forecast period.
- Digital usage is expanding rapidly in Denmark. Mobile phones are becoming crucial in connecting people with brands, regardless of industry, with customers in the Nordic region using their phones for banking and communication.
- Consumer behavior has been impacted by the quick adoption of the internet and smartphone technology in a variety of businesses. For instance, from 2016 to 2021, the per capita purchasing power per person in Denmark increased from USD 54,185.01 to USD 57,962.6. As a result, more people can purchase smartphones, increasing the number of smartphone users. The country's internet penetration increased from 97% in 2017 to 99% in 2021. At the same time, the number of smartphone users increased from 4.75 million in 2017 to 5.47 million in 2021. E-commerce sales in Denmark increased from EUR 19.5 billion in 2019 to USD 21.45 billion in 2020, suggesting that people are now more inclined to prefer cashless transactions, which is predicted to have a long-term impact on the market.
- Consequently, there are more smartphone users in Denmark. The rising use of smartphones in Denmark's market results in a constant increase in data, necessitating a growing amount of storage space to accommodate this uncontrollable flow of data with the need for real-time processing and analysis. Data centers must manage the sheer amount of data. Thus, the requirement for extra racks in French data centers may increase as the number of smartphone users rises.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing investment in 5G services by provider such as TDC, Ericsson leads to the market demand
- Increasing investment in rolling fiber cable by provider such as Wizer and Telenor leads to the market demand
- Low cost fiber broadband subscription fees with increasing FTTx adoption leads to the market demand
Segment Analysis: By Data Center Size
Mega Segment in Denmark Data Center Market
The mega data center segment dominates the Danish data center market, holding approximately 37% market share in 2024, with an IT load capacity of 93.33 MW. This segment's prominence is driven by the increasing demand for cloud services, e-commerce platforms, and telecom services across Denmark. The segment is experiencing remarkable growth, projected to expand at around 26% CAGR from 2024 to 2029, making it the fastest-growing segment in the market. This growth is particularly evident in developments like Prime Data Centers' announcement in 2023 for a three-building, 124 MW campus in Saeby, northern Denmark. The campus is designed to be powered by 100% renewable energy, with waste heat being recycled for district heating, demonstrating the segment's commitment to sustainable operations while meeting the escalating demand for large-scale data center facilities.
Remaining Segments in Data Center Size Market
The medium segment represents a significant portion of the market, characterized by facilities that cater to diverse business needs and regional data processing requirements. Large data centers form another crucial segment, offering balanced capabilities between mega and medium facilities, while massive data centers provide specialized services for specific high-demand applications. The small data center segment, though representing a smaller market share, continues to serve specific niche requirements and local data processing needs. These segments collectively provide a comprehensive ecosystem of data center services, catering to various business scales and operational requirements across Denmark, from local enterprises to regional operations.
Segment Analysis: By Tier Type
Tier 4 Segment in Denmark Data Center Market
The Tier 4 segment has emerged as the dominant force in Denmark's data center market, commanding approximately 55% market share in 2024, while also demonstrating the strongest growth trajectory. This segment's prominence is driven by the increasing demand for fault-tolerant infrastructure from hyperscale customers and cloud service providers. Major operators like Bulk Infrastructure Group AS and Stack Infrastructure are leading the Tier 4 deployment in Denmark, with facilities designed to meet the highest standards of redundancy and reliability. The segment's growth is further supported by upcoming projects, including Prime Data Centers' planned three-building campus in Saeby with 124 MW capacity, which will be built to Tier 4 specifications. These facilities incorporate advanced cooling systems, redundant power supplies, and sophisticated security measures to ensure 99.995% availability, making them particularly attractive for mission-critical applications and enterprise workloads.
Tier 3 Segment in Denmark Data Center Market
The Tier 3 segment represents a significant portion of Denmark's data center infrastructure, offering a balance between reliability and cost-effectiveness. These facilities provide concurrent maintainability, allowing for planned maintenance activities without disrupting operations. Copenhagen data center hosts the majority of Tier 3 facilities, accounting for approximately 62% of the total Tier 3 capacity, while other locations like Skanderborg, Kolding, Herning, Tonder, and Aarhus collectively host the remaining facilities. Leading operators in this segment include GlobalConnect AS and Fuzion AS, each operating five Tier 3 certified facilities, while companies like Cibicom AS, NNIT AS, and CenterServ maintain two facilities each. The segment continues to expand with several facilities under construction, including Interxion's 14.4 MW facility and Stack Infrastructure's 12 MW development, primarily concentrated in the data center Copenhagen region.
Remaining Segments in Tier Type
The Tier 1 & 2 segment represents the basic level of data center infrastructure in Denmark, primarily serving non-critical applications and smaller businesses. These facilities offer basic infrastructure redundancy and are typically more cost-effective to build and operate compared to higher tier facilities. However, their market presence is diminishing as businesses increasingly prioritize higher availability and reliability for their digital infrastructure. The limited growth in this segment reflects the market's shift toward more sophisticated data center solutions, with operators focusing their investments on higher tier facilities to meet the evolving demands of modern digital businesses and cloud services.
Segment Analysis: By Absorption
Utilized Segment in Denmark Data Center Market
The utilized segment dominates the Danish data center market, accounting for approximately 80% of the total IT load capacity in 2024. This significant market share is driven by increasing adoption of cloud services, rising demand from telecom operators, and growing digitalization across various industries. The segment's growth is further supported by Denmark's position as a key part of the Nordics region, which is one of the fastest-growing non-FLAP regions in Europe. The high utilization rates are also attributed to the onboarding of additional firms across various sectors including cloud service providers, e-commerce companies, BFSI institutions, and telecom operators. The segment's strong performance is reinforced by Denmark's robust digital infrastructure, high internet penetration rate of 99%, and the country's commitment to sustainability in data center operations. The utilized absorption rate has been steadily rising over time, indicating efficient capacity management and strong market demand.
Non-Utilized Segment in Denmark Data Center Market
The non-utilized segment in the Danish data center market represents the available capacity that is yet to be occupied by end-users. This segment plays a crucial role in ensuring market flexibility and future growth potential, allowing data center operators to quickly respond to sudden increases in demand. The segment's size reflects the market's preparedness for future expansion while maintaining operational efficiency. Data center operators in Denmark maintain strategic levels of non-utilized capacity to accommodate rapid scaling requirements from existing clients and potential new customers. This approach allows them to offer immediate solutions to businesses looking to establish or expand their presence in the Nordic region. The segment's dynamics are influenced by factors such as new facility constructions, expansion projects, and the timing of capacity absorption by end-users. The non-utilized capacity also serves as a buffer for seasonal demand fluctuations and unexpected surges in requirements from various industry verticals.
Denmark Data Center Industry Overview
Top Companies in Denmark Data Center Market
The data center market in Denmark is characterized by continuous innovation and strategic expansion initiatives by key players. Companies are increasingly focusing on implementing advanced cooling technologies, including submerged cooling systems, to significantly reduce power consumption and improve operational efficiency. Market leaders are actively expanding their facilities across major hotspots like Copenhagen data center, while also exploring opportunities in emerging locations such as Esbjerg and Odense. Strategic partnerships with renewable energy providers have become crucial, with most operators transitioning to wind and hydropower sources to meet sustainability goals. The industry is witnessing a strong trend toward carrier-neutral facilities offering enhanced connectivity options, while providers are simultaneously developing customizable solutions ranging from single racks to entire halls to meet diverse client requirements. Additionally, companies are investing heavily in certifications and security compliance to strengthen their market positions and attract enterprise customers.
Market Dominated by Regional Infrastructure Specialists
The Danish data center market exhibits a balanced mix of established regional players and international operators, with Nordic infrastructure specialists maintaining a strong presence. The market structure shows moderate consolidation, with the top three players accounting for a significant market share while maintaining healthy competition through differentiated service offerings. Local operators leverage their deep understanding of the Nordic market dynamics and established relationships with utility providers, while global players bring international expertise and advanced technological capabilities to the market.
The industry has witnessed several strategic acquisitions and partnerships, particularly focused on expanding geographical presence and enhancing technical capabilities. Market consolidation activities are primarily driven by the need to acquire strategic locations, secure power resources, and expand customer bases. International players are increasingly entering the market through acquisitions of local operators, recognizing Denmark's potential as a key data center hub in the Nordic region. This trend is complemented by joint ventures between infrastructure providers and technology companies to create comprehensive service offerings.
Innovation and Sustainability Drive Future Success
Success in the Danish data center market increasingly depends on operators' ability to combine technological innovation with sustainable operations. Incumbent players must focus on expanding their renewable energy portfolios, implementing advanced cooling solutions, and developing flexible capacity options to maintain their market positions. The ability to offer customized solutions for different customer segments, particularly hyperscale clients and enterprise users, while maintaining operational efficiency will be crucial for market leadership. Companies need to invest in building robust connectivity infrastructure and establishing strategic partnerships with cloud service providers to enhance their value propositions.
For new entrants and challenger companies, differentiation through specialized services and innovative solutions presents the most viable path to market success. This includes developing niche offerings for specific industries, implementing cutting-edge technologies for energy efficiency, and establishing strong local partnerships. The market shows limited substitution risk due to increasing digitalization and cloud adoption, but regulatory compliance, particularly regarding data protection and environmental standards, remains a critical consideration. Success will also depend on operators' ability to address the growing demand for edge computing solutions and their capability to support the evolving needs of the digital economy while maintaining high security and reliability standards.
Denmark Data Center Market Leaders
-
Cibicom AS
-
Colt Technology Services
-
GlobalConnect AB
-
Interxion (Digital Reality Trust Inc.)
-
NNIT AS
- *Disclaimer: Major Players sorted in no particular order
Denmark Data Center Market News
- February 2023: GlobalConnect is the first colocation operator in Europe to offer its clients immersed cooling technique that can reduce data center cooling power consumption by up to 90%. The next-generation cooling technology was deployed in GlobalConnect's data center in Copenhagen and will be rolled out to all remaining data centers based on customer demand.
- June 2021: Sentia Denmark’s data center in Glostrup was acquired by the European data center provider Penta Infra. The acquisition of Sentia Danmark's data centers is Penta Infra's first step toward entering the Nordic market. Penta Infra currently manages several data centers in the Netherlands and Germany.
- February 2021: Cincinnati, Ohio's 925 Dalton Avenue, a 107,000 sq. ft data center, was acquired by H5 Data Centers, a national colocation and carrier hotel provider. The purpose-built enterprise data center, which PNC Bank initially created, is a Tier III concurrently maintained site close to downtown Cincinnati and less than 15 minutes from Cincinnati/Northern Kentucky International Airport.
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.
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, DENMARK, 2018 - 2030
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), DENMARK, 2018 - 2030
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, DENMARK, 2018 - 2030
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, DENMARK, 2018 - 2030
- Figure 5:
- RACK SPACE UTILIZATION, %, DENMARK, 2018 - 2030
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, DENMARK, 2018 - 2030
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, DENMARK, 2018 - 2030
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, DENMARK, 2018 - 2030
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, DENMARK, 2018 - 2030
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, DENMARK, 2018 - 2030
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, DENMARK, 2018 - 2030
- Figure 12:
- VOLUME OF HOTSPOT, MW, DENMARK, 2018 - 2030
- Figure 13:
- VOLUME SHARE OF HOTSPOT, %, DENMARK, 2018 - 2030
- Figure 14:
- VOLUME SIZE OF COPENHAGEN, MW, DENMARK, 2018 - 2030
- Figure 15:
- VOLUME SHARE OF COPENHAGEN, MW, HOTSPOT, %, DENMARK, 2018 - 2030
- Figure 16:
- VOLUME SIZE OF REST OF DENMARK, MW, DENMARK, 2018 - 2030
- Figure 17:
- VOLUME SHARE OF REST OF DENMARK, MW, HOTSPOT, %, DENMARK, 2018 - 2030
- Figure 18:
- VOLUME OF DATA CENTER SIZE, MW, DENMARK, 2018 - 2030
- Figure 19:
- VOLUME SHARE OF DATA CENTER SIZE, %, DENMARK, 2018 - 2030
- Figure 20:
- VOLUME SIZE OF LARGE, MW, DENMARK, 2018 - 2030
- Figure 21:
- VOLUME SIZE OF MASSIVE, MW, DENMARK, 2018 - 2030
- Figure 22:
- VOLUME SIZE OF MEDIUM, MW, DENMARK, 2018 - 2030
- Figure 23:
- VOLUME SIZE OF MEGA, MW, DENMARK, 2018 - 2030
- Figure 24:
- VOLUME SIZE OF SMALL, MW, DENMARK, 2018 - 2030
- Figure 25:
- VOLUME OF TIER TYPE, MW, DENMARK, 2018 - 2030
- Figure 26:
- VOLUME SHARE OF TIER TYPE, %, DENMARK, 2018 - 2030
- Figure 27:
- VOLUME SIZE OF TIER 1 AND 2, MW, DENMARK, 2018 - 2030
- Figure 28:
- VOLUME SIZE OF TIER 3, MW, DENMARK, 2018 - 2030
- Figure 29:
- VOLUME SIZE OF TIER 4, MW, DENMARK, 2018 - 2030
- Figure 30:
- VOLUME OF ABSORPTION, MW, DENMARK, 2018 - 2030
- Figure 31:
- VOLUME SHARE OF ABSORPTION, %, DENMARK, 2018 - 2030
- Figure 32:
- VOLUME SIZE OF NON-UTILIZED, MW, DENMARK, 2018 - 2030
- Figure 33:
- VOLUME OF COLOCATION TYPE, MW, DENMARK, 2018 - 2030
- Figure 34:
- VOLUME SHARE OF COLOCATION TYPE, %, DENMARK, 2018 - 2030
- Figure 35:
- VOLUME SIZE OF HYPERSCALE, MW, DENMARK, 2018 - 2030
- Figure 36:
- VOLUME SIZE OF RETAIL, MW, DENMARK, 2018 - 2030
- Figure 37:
- VOLUME SIZE OF WHOLESALE, MW, DENMARK, 2018 - 2030
- Figure 38:
- VOLUME OF END USER, MW, DENMARK, 2018 - 2030
- Figure 39:
- VOLUME SHARE OF END USER, %, DENMARK, 2018 - 2030
- Figure 40:
- VOLUME SIZE OF BFSI, MW, DENMARK, 2018 - 2030
- Figure 41:
- VOLUME SIZE OF CLOUD, MW, DENMARK, 2018 - 2030
- Figure 42:
- VOLUME SIZE OF E-COMMERCE, MW, DENMARK, 2018 - 2030
- Figure 43:
- VOLUME SIZE OF GOVERNMENT, MW, DENMARK, 2018 - 2030
- Figure 44:
- VOLUME SIZE OF MANUFACTURING, MW, DENMARK, 2018 - 2030
- Figure 45:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, DENMARK, 2018 - 2030
- Figure 46:
- VOLUME SIZE OF TELECOM, MW, DENMARK, 2018 - 2030
- Figure 47:
- VOLUME SIZE OF OTHER END USERS, MW, DENMARK, 2018 - 2030
- Figure 48:
- VOLUME SIZE OF OTHERS END USER, MW, DENMARK, 2018 - 2030
- Figure 49:
- VOLUME SHARE OF MAJOR PLAYERS, %, DENMARK
Denmark Data Center Industry Segmentation
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.Hotspot | Copenhagen | |||
Rest of Denmark | ||||
Data Center Size | Large | |||
Massive | ||||
Medium | ||||
Mega | ||||
Small | ||||
Tier Type | Tier 1 and 2 | |||
Tier 3 | ||||
Tier 4 | ||||
Absorption | Non-Utilized | |||
Utilized | By Colocation Type | Hyperscale | ||
Retail | ||||
Wholesale | ||||
By End User | BFSI | |||
Cloud | ||||
E-Commerce | ||||
Government | ||||
Manufacturing | ||||
Media & Entertainment | ||||
Telecom | ||||
Other End Users | ||||
Others End User |
Copenhagen |
Rest of Denmark |
Large |
Massive |
Medium |
Mega |
Small |
Tier 1 and 2 |
Tier 3 |
Tier 4 |
Non-Utilized | |||
Utilized | By Colocation Type | Hyperscale | |
Retail | |||
Wholesale | |||
By End User | BFSI | ||
Cloud | |||
E-Commerce | |||
Government | |||
Manufacturing | |||
Media & Entertainment | |||
Telecom | |||
Other End Users | |||
Others End User |
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. |
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