Norway Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Norway Data Center Market Analysis

The Norway Data Center Market size is estimated at 379.9 MW in 2025, and is expected to reach 637.6 MW by 2030, growing at a CAGR of 10.92%. Further, the market is expected to generate colocation revenue of USD 228.9 Million in 2025 and is projected to reach USD 504.6 Million by 2030, growing at a CAGR of 17.12% during the forecast period (2025-2030).

Norway's data center industry is experiencing significant transformation driven by the country's aggressive push toward digital innovation and sustainability. The government's initiative to create digital twins of society and make property data freely available demonstrates its commitment to digital transformation. This digital-first approach has resulted in approximately 90% of the Norwegian population accessing government services online, highlighting the country's advanced digital infrastructure. The integration of smart city technologies across major urban centers, including Oslo, Tromsø, and Bærum, has created new demands for data processing and storage capabilities.

The market is witnessing a substantial shift in infrastructure preferences, particularly in the adoption of advanced tier facilities. Tier 3 and Tier 4 data centers, which offer superior features such as remote assistance, disaster recovery, and lower downtime, are becoming increasingly prevalent. This trend is supported by the growing digital consumption patterns, with approximately 4.75 million people (86.5% of the population) actively using social media platforms in 2022. Additionally, the emergence of quick commerce has created new demands, exemplified by 1.9 million people utilizing food delivery applications, generating an annual value of around USD 223.9 million in 2022.

The Norwegian data center industry is undergoing significant technological advancement, particularly in cooling and power efficiency innovations. Data center operators are increasingly leveraging Norway's cold climate for natural cooling solutions, while also implementing sophisticated heat recovery systems. For instance, in Bergen's Lyseparken area, data centers are being designed to redirect rejected heat for residential heating purposes, demonstrating the industry's commitment to sustainable operations. The integration of smart home technologies is also driving market growth, with 881.9 thousand homes utilizing smart appliances and achieving a penetration rate of 35.6% for smart devices.

The market is experiencing a notable shift toward cloud adoption and infrastructure modernization. Major telecommunications providers are transitioning their infrastructure, as evidenced by Telenor's 2023 announcement to shut down its copper network in favor of 5G and fiber deployments. This transformation is supported by the increasing adoption of cloud services among businesses, with 60% of Norwegian companies utilizing cloud infrastructure. The industry is also witnessing significant expansion plans, exemplified by Stack Infrastructure's announcement to develop a 36 MW facility in Oslo by 2029, indicating strong confidence in the market's growth potential.

Norway Data Center Market Trends

Increasing number of 5G-enabled smartphones and internet surge lead to boost the market demand

• Smartphone usage in Norway will increase at a CAGR of about 0.89% from 2022 to 2029. About 86% users accessed the internet everyday using their smartphones in Norway in 2021, compared to about 85% accessing in 2018, and 74% in 2016. As of 2021, the users aged between the age group of 16-19 years comprised about 99%, followed by 96% belonging to the age group of 20-24 years and 25 to 44 years, highlighting how the young and mature audience, both contribute significantly to the overall smartphone adoption.
• The data from Eurostat suggested that about 75% of internet users shopped online in 2018 in Norway, including about 40% accessing the e-commerce platforms through their smartphones. Mobile call service revenue increased from NOK 20.39 billion in 2019 to NOK 21.39 billion in 2021. This highlighted the buying power and requirement of smartphones among the buyers in the country, contributing to the increasing number of smartphones. As more 5G-enabled smartphones are available in Norway, users will continue to buy the devices and leverage the high average download speeds.
• With a high smartphone adoption rate of more than 96% of users preferring Apple smartphones in 2020, compared to about 91% accessing smartphones as of 2017, the growth rate is bound to increase with high uptake during the forecast period. As the country is set to account for better penetration, the rise in the number of 5G-enabled smartphones in the region may create more data-generating points and demand for data centers to provide the required processing platform for smartphone-centric software and online storage options in Norway.

Increasing FTTH users and fiber network is boosting the data speed leading to demand for data center

• Broadband connectivity in Norway accounted for a major dependence on fiber connectivity as of 2022. Since only a few wholesale network users depended on copper-based broadband networks, most service providers are considering shutting down the copper network, shifting the services completely to fiber and DSL-supported services. As of 2023, Telenor, one of the major service providers, announced shutting down its copper network, emphasizing 5G and fiber roll-outs.
• The overall broadband speeds of the country accounted for about 109.42 Mbps in 2022, compared to about 104.02 Mbps in 2021. The drastic shift to fiber may attract major infrastructural opportunities for the service providers by extending the services for FTTH users. This shift is supported by strategic partnerships among service providers, including the three-year partnership for fiber and FWA between Eltel Norway and Viken Fiber, accounting for about NOK 200 million.
• As of 2020, the number of fixed broadband connections in Norway was reported to be about 2.3 million by the World Bank, increasing from about 2.21 million in 2018. With operators like Bayonette introducing FTTH services with data transfer capabilities of about 1 Gbps in 2013, the scenario is set to evolve for faster broadband speeds delivered through the fiber network in the country. The faster data transmission achieved due to the better FTTH services in the country is expected to contribute significantly to data generation, directly impacting the demand for data centers.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Data Center Size

Mega Segment in Norway Data Center Market

The mega data center segment has emerged as both the largest and fastest-growing segment in the Norway data center market. Holding approximately 34% market share in 2024, mega data centers are driving significant growth in the country's data center infrastructure. These facilities are primarily concentrated in strategic locations like Alvdal, Enebakk, and Kjolsden, with companies like New Mining, Lefdal Mine Datacenter, and Green Mountain leading the segment. The implementation of 5G technology and increasing data consumption patterns have particularly benefited mega data centers, as they are better equipped to handle large-scale computational requirements. The segment's dominance is further strengthened by its superior infrastructure capabilities, with facilities offering advanced features like disaster recovery and remote assistance services, making them particularly attractive for large enterprises and content-oriented companies.

Remaining Segments in Data Center Size Market

The Norway data center market encompasses several other significant segments, including massive, medium, large, and small data centers, each serving distinct market needs. Massive data centers represent the second-largest segment, offering substantial processing capabilities while maintaining operational efficiency through renewable energy usage. Medium-sized facilities serve as crucial infrastructure components for regional and mid-sized enterprises, while large data centers cater to specific industry verticals with specialized requirements. Small data centers, though representing a smaller market share, play a vital role in serving local businesses and specific industry applications. These segments collectively contribute to a diverse and robust data center ecosystem in Norway, with each category addressing specific market requirements ranging from edge computing to specialized industry applications.

Segment Analysis: Tier Type

Tier 3 Segment in Norway Data Center Market

Tier 3 data centers dominate the Norwegian market, commanding approximately 71% market share in 2024. These facilities are primarily concentrated in strategic locations, including Oslo, Gaupne, Halden, Billingstad, Bergen, Kristiansand, Rennesoy, Rjukan, and Enebakk. Oslo leads with the highest concentration of Tier 3 facilities, operating at an IT load capacity of 58 MW and representing around 25% of the total Tier 3 capacity. The segment's prominence is driven by the advanced infrastructure capabilities of Tier 3 facilities, which offer critical features such as remote assistance, disaster recovery services, minimal downtime, and low latency operations. These attributes make them particularly attractive to large enterprises, especially content-oriented companies requiring reliable and high-performance data center services.

Tier 4 Segment in Norway Data Center Market

The Tier 4 data center segment is experiencing remarkable growth in Norway, projected to expand at approximately 19% during 2024-2029. This substantial growth is primarily driven by the increasing digital inclusion across the country and the rising demand for ultra-reliable data center services. The segment's expansion is particularly notable in strategic locations such as Oslo and Kjolsdalen, where major operators are establishing state-of-the-art facilities. The growth is further supported by the increasing adoption of sophisticated digital services, including high-quality content delivery, gaming platforms, and mission-critical enterprise applications that require the highest levels of reliability and performance that Tier 4 facilities provide.

Remaining Segments in Tier Type

Tier 1 and Tier 2 data centers represent a smaller but essential segment of Norway's data center market. These facilities primarily cater to small businesses and organizations with basic infrastructure requirements. While they may lack some of the advanced features found in higher-tier facilities, they continue to serve an important role in providing cost-effective solutions for businesses with less demanding computational needs. These data centers are predominantly located in urban areas such as Oslo, Billingstad, Halden, and Grorud, offering basic data center services with minimal redundancy requirements.

Segment Analysis: Absorption

Utilized Segment in Norway Data Center Market

The utilized segment dominates the Norway data center market, accounting for approximately 61% of the total IT load capacity in 2024. This significant market share is driven by the increasing adoption of cloud services, with major cloud providers expanding their presence in the region. The segment's growth is further supported by Norway's commitment to sustainable data center operations, leveraging the country's abundant renewable energy resources. The utilized capacity is primarily distributed across various end-users, including cloud service providers, telecom operators, the BFSI sector, and government organizations, with cloud services representing the largest portion of utilized capacity.

Utilized Segment Growth in Norway Data Center Market

The utilized segment is experiencing robust growth in the Norway data center market, projected to expand at approximately 10% from 2024 to 2029. This growth is primarily driven by increasing digitalization across industries and the rising adoption of cloud computing services. The segment's expansion is supported by Norway's strategic advantages, including low-cost renewable energy, a favorable climate for natural cooling, and supportive government policies. The growth is further accelerated by the increasing demand for colocation services, particularly in hyperscale and wholesale segments, as more international companies choose Norway as their data center destination.

Remaining Segments in Absorption

The non-utilized segment represents the available capacity in Norway's data center market that is yet to be occupied by end-users. This segment plays a crucial role in the market as it indicates the industry's readiness to accommodate future growth and expansion. The availability of non-utilized capacity allows data center operators to quickly respond to sudden increases in demand, particularly from hyperscale clients. This segment also reflects the market's strategic approach to phased capacity deployment, ensuring optimal resource utilization while maintaining flexibility for future scaling requirements.

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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.