Sweden Hyperscale Data Center Market Size and Share
Sweden Hyperscale Data Center Market Analysis by Mordor Intelligence
The Sweden hyperscale data center market is worth USD 1.95 billion in 2025 and is forecast to reach USD 3.99 billion by 2030, expanding at a 15.44% CAGR. Continuous inflows of cloud-region commitments, a national electricity mix that is 98% fossil-free, and a climate suited to free-air cooling are stimulating rapid greenfield development. Major cloud service providers (CSPs) are scaling local capacity to support artificial-intelligence (AI) services, while renewable-energy pricing contracts help safeguard operating margins in an environment of volatile European power markets. Large-scale investments such as Microsoft’s USD 3.2 billion expansion and Meta’s ongoing Luleå campus build-out signal long-term confidence in Sweden’s policy stability and grid-decarbonization trajectory. In parallel, colocation specialists are adding megawatt blocks that accommodate liquid-cooled racks as GPU deployments accelerate.
Key Report Takeaways
- By data center type, enterprise/self-build facilities retained nearly 60% of Sweden hyperscale data center market share in 2024, whereas hyperscale colocation is projected to grow at 10% CAGR to 2030.
- By service type, Infrastructure-as-a-Service held 45% revenue share in 2024; Software-as-a-Service is expected to advance at a 12% CAGR through 2030.
- By end user, cloud and IT accounted for 55% of Sweden hyperscale data center market size in 2024, while the BFSI sector is forecast to expand at a 18% CAGR between 2025 and 2030.
- By region, Stockholm commands 70 MW of commissioned power capacity and processes 55% of Nordic internet traffic; Northern Sweden is gaining traction for facilities exceeding 50 MW that leverage hydropower and ambient temperatures.
- Microsoft, AWS, and Google collectively operate or control more than 65% of installed hyperscale megawatt capacity nationwide, underpinning moderate market concentration.
Sweden Hyperscale Data Center Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Incentives and green-energy subsidies | 3.90% | National, strongest in Northern Sweden | Medium term (2-4 years) |
Surging Nordic cloud-region demand | 3.10% | National, focus on Stockholm | Short term (≤ 2 years) |
Low-carbon footprint and free-cooling climate | 2.30% | Nationwide, amplified in northern municipalities | Long term (≥ 4 years) |
Dense international connectivity via new sub-sea cables | 2.80% | Coastal zones, especially Stockholm | Medium term (2-4 years) |
Source: Mordor Intelligence
Government Incentives and Green-Energy Subsidies Accelerating Hyperscale Expansion
Sweden continues to align energy, climate, and industrial-policy instruments with data-center investment goals. The national Electricity Certificate System, which rewards renewable generation, reduces the effective cost of power for operators that contract for on-shore wind or hydro output.[2]Energimyndigheten, “Electricity Certificate System Overview 2025,” energimyndigheten.seA 2024 grid-development blueprint commits to 1,500 km of new transmission lines and 30 substations, improving supply resilience for hyperscale clusters. Local municipalities in Västerbotten and Norrbotten are also streamlining permitting for plots above 30 MW, cutting average lead times by six months. These measures underpin Microsoft’s decision to deploy 20,000 GPUs across three campuses and Meta’s third building in Luleå. Together, tax rebates on property, predictable environmental rules, and low-carbon electricity enlarge the competitive moat of the Sweden hyperscale data center market.
Surging Nordic Cloud-Region Demand from Global CSPs
The Nordic cloud addressable market grew 25% year-over-year in Q3 2024, prompting hyperscalers to accelerate regional-zone launches. AWS expanded availability-zones in Eskilstuna, Katrineholm, and Västerås while securing a 472 MW Nordic wind off-take to decouple power costs from wholesale volatility. Google upgraded its Hamina-Stockholm fiber pair, lowering round-trip latency for Swedish users to 15 milliseconds. CSPs cite Sweden’s strict data-protection regime and proximity to European enterprise demand as reasons to anchor Nordic compute here rather than Finland or Denmark. The inflow of multi-billion-dollar commitments sustains double-digit demand for hyperscale land and power, reinforcing near-term capacity absorption across both self-build and colocation models.
Competitive Advantage of Low-Carbon Footprint and Free-Cooling Climate
Average outside air temperatures below 10 °C for eight months allow operators to substitute mechanical chillers with indirect evaporative systems, pushing annualized PUE toward 1.2. Microsoft reported a 1.172 PUE at its Gavle site in 2024, trimming cooling electricity by 35% relative to its global fleet average.[4]Uptime Institute, “Global Data Center Survey 2024,” uptimeinstitute.com Digital Realty matches demand hourly with carbon-free power procured from Vattenfall, ensuring 24/7 renewable coverage across six Stockholm halls. Such results support corporate-level commitments to net-zero targets and serve procurement teams that now view embodied-carbon disclosure as a contract pre-condition. The Sweden hyperscale data center market therefore benefits from structural climate and grid attributes that few European peers can replicate.
Dense International Connectivity via New Sub-Sea Cables
Three trans-Baltic cables—the C-Lab, Eastern-Light, and Arelion Sirius projects—came online between 2023 and 2025, adding 72 Tbps of aggregate design capacity into Stockholm’s carrier hotelsCitypop colocation providers report 90% port utilization on newly lit wavelengths, demonstrating end-user appetite for low-latency routes to Germany, Poland, and the United Kingdom. Hyperscalers prefer locating compute clusters inside dense exchange fabrics, allowing direct interconnect with Content Delivery Networks and internet backbones. The enhanced network position reinforces Stockholm’s primacy within the Sweden hyperscale data center market for latency-sensitive workloads such as multiplayer gaming and video-stream encoding
Grid-Capacity Bottlenecks and Queuing in Stockholm/Mälardalen
Stockholm’s electricity-balance zone (SE3) faces a 580 MW shortfall versus reserved capacity by 2027, as operators employ “air bookings” to secure future megawatts. Svenska kraftnät’s 2024–2033 plan earmarks SEK 89 billion for transmission upgrades, yet lead times of up to eight years mean existing queues will persist.[1]Svenska kraftnät, “Grid Development Plan 2024–2033,” svk.se Several hyperscalers have redirected new availability-zones to central or northern sites, diluting Stockholm’s share of incremental megawatts. Until reinforcement projects such as the 400-kV Stockholm Nuclear Ring are energized, power scarcity will temper near-term build schedules and constrain upside for the Sweden hyperscale data center market.
Rising Nordic Electricity Prices Post-2022 Energy Shock
Nordic system prices averaged EUR 72 per MWh in 2024, doubling 2021 levels as continental gas volatility spilled into cross-border exchanges.[3]Montel News, “Nordic Power Prices Hold Above EUR 70/MWh,” montelnews.com Sweden further removed discounted electricity tax for data centers in July 2023, adding EUR 32 per MWh to large-scale users that cannot prove ultra-high efficiency. Operators now face total delivered-power costs 18% above the pre-crisis baseline, pressuring margins for energy-intensive AI training clusters. While long-term power-purchase agreements mitigate some exposure, pricing uncertainty remains a deterrent for investors evaluating 100-MW greenfield campuses scheduled beyond 2027.
Segment Analysis
By Data Center Type: Self-build Dominance with Colocation acceleration
Enterprise-controlled campuses captured nearly 60% of Sweden hyperscale data center market share in 2024 as Microsoft, Meta, AWS, and Google prioritized proprietary designs optimized for AI acceleration. Self-built facilities often feature 300 mm utility conduits, on-site sub-stations, and solar-ready roofs that support corporate decarbonization roadmaps. Capital efficiency improves through standardized blueprints and global procurement agreements, allowing hyperscalers to deliver each additional megawatt at a 12% lower cost than earlier Nordic builds. The Sweden hyperscale data center market size for self-build deployments is forecast to expand from USD 1.30 billion in 2025 to USD 2.55 billion in 2030.
Hyperscale colocation, though smaller, is registering a 10% CAGR as enterprises seek turnkey halls enabling 30-50 kW racks and liquid-cooling loops. STACK Infrastructure’s 80 MW Stockholm campus and Digital Realty’s Kista expansion both reserve one-third of new whitespace for direct-to-chip liquid cooling. Financial sponsors, including EQT Infrastructure and Areim, inject equity into platform roll-ups targeting >300 MW by 2028, signalling sustained appetite for third-party capacity. The asset-light demand profile of emerging AI-focused software vendors favors the colocation archetype, broadening its addressable share of the Sweden hyperscale data center market.
Note: Segment shares of all individual segments available upon report purchase
By Service Type: IaaS Leadership with SaaS Momentum
Infrastructure-as-a-Service generated 45% of 2024 revenue as organizations outsourced compute, storage, and network layers to hyperscale clouds. Sweden’s regulated sectors—healthcare, public administration, and finance prefer IaaS zones that guarantee data residency and ISO 27001 compliance, reinforcing local provider expansion. The Sweden hyperscale data center market size attributable to IaaS stands at USD 0.95 billion in 2025 and is set to reach USD 1.85 billion by 2030.
Software-as-a-Service is accelerating at a 12% CAGR, fueled by widespread adoption of generative-AI productivity suites and cloud native ERP platforms. Native Swedish startups, such as Kognic and Mentimeter, consume hyperscale compute-cycles for real-time collaboration features, driving incremental GPU hours. Platform-as-a-Service plays a crucial orchestration role, underpinning container deployments that enable continuous-integration pipelines for Industry 4.0 applications. These complementary layers support stickiness within the Sweden hyperscale data center market, with cross-sell potential improving overall revenue density per megawatt.
By End User: Cloud & IT Primacy with BFSI Surge
Cloud-centric technology companies commanded 55% of the Sweden hyperscale data market in 2024, drawn by sovereign cloud regions that deliver sub-20-ms latency to Northern European users. Telecommunications carriers leverage the same footprints for 5G Core virtualization, benefiting from proximity to internet exchange points. Energy-sector digital twins and automotive-sector over-the-air update pipelines similarly cluster around Stockholm neutral facilities for bandwidth efficiency.
The BFSI community is scaling colocation and private-cloud pods at a 18% CAGR as open-banking APIs, high-frequency trading analytics, and AI-driven fraud detection demand low-variance compute. SEB and Handelsbanken have adopted NVIDIA H100 GPU clusters housed within Tier III colocation halls to train financial-language models, highlighting the performance requirements shaping future builds. Public-sector workloads, including Sweden’s National AI Cloud, add mission-critical demand for security-certified campuses, enhancing diversity across the Sweden hyperscale data center industry
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Stockholm remains the nucleus of the Sweden hyperscale data center market, hosting roughly 70 MW of delivered power and over 125 network operators. Carrier-dense campuses at Kista and Sköndal interconnect north–south fiber corridors and the new Eastern-Light cable, reinforcing the city’s role as a gateway for traffic into Germany and Poland. Heat-re-use schemes distribute waste warmth to district-energy grids capable of servicing 35,000 apartments annually, illustrating how urban sustainability objectives dovetail with hyperscale operating models. Nonetheless, the queue for 400-kV grid access is lengthening, prompting some providers to cap expansion at current parcels until reinforcement lines arrive in 2027.
Northern Sweden, anchored by Luleå and Boden, exploits ambient temperatures that average 3 °C and hydropower availability exceeding 12 TWh. Meta’s three-building Luleå campus operates with a 1.06 design PUE, achieving cooling energy reductions near 40% compared with central-European sites meta.com. AtNorth recently acquired 30 hectares in Långsele for a 120 MW “mega site,” marking one of Scandinavia’s largest brown-to-green industrial conversions. Regional authorities offer workforce-training subsidies to mitigate shortages of certified data-center technicians, though staffing pipelines remain a constraint on 24x7 operations.
Central Sweden provides a compromise between Stockholm connectivity and northern energy economics. Microsoft’s Gävle and Sandviken facilities demonstrate that 20-ms round-trip latency to Frankfurt is achievable while drawing exclusively on local hydro and wind. EcoDataCenter’s Falun complex blends biomass cogeneration with data-center heat capture, producing negative net CO₂ emissions for specific workloads. The corridor’s 132-kV grid nodes still present 300 MW of unconstrained capacity, making it a target for multi-tenant developers planning campuses beyond 2028. As Stockholm grid congestion intensifies, central municipalities are poised to absorb a greater slice of the Sweden hyperscale data center market.

Note: Segment shares of all individual segments available upon report purchase
Competitive Landscape
Sweden hosts a moderately concentrated constellation of global hyperscalers, international colocation specialists, and domestic pure plays. Microsoft, AWS, and Google collectively control an estimated 60% of commissioned megawatts, underpinning cloud-region resilience and shaping wholesale power-purchase agreement (PPA) dynamics. Digital Realty enlarges its Stockholm footprint via six halls matched 24/7 with Vattenfall renewable output, providing corporate clients with guaranteed carbon-free energy pathways. Equinix operates dual-campus metro nodes that enable ecosystem connectivity for over 125 carriers, anchoring latency-sensitive workloads such as online gaming and fintech transaction clearing.
Strategic partnerships increasingly differentiate operators. AtNorth’s pact with NVIDIA to host the National AI Cloud brings Grace Blackwell GB300 systems into Swedish sovereign control, solidifying its role in regulated-sector AI compliance. STACK Infrastructure, backed by IPI Partners, deploys prefabricated liquid-cooling manifolds to capture GPU-dense demand from generative-AI firms that seek near-term capacity without committing to self-build timelines. Areim’s USD 977 million Nordic data-center fund channels institutional capital toward green-certified campuses, intensifying competition for high-voltage land parcels in central and northern nodes.
Sustainability metrics now function as competitive currency. Digital Realty’s hourly renewable-matching declaration, EcoDataCenter’s negative-emission claim, and Vattenfall’s corporate PPA marketplace each influence hyperscaler site-selection algorithms. Providers that can document embodied-carbon baselines and actively divert waste heat to district networks secure preferential consideration in AI cluster siting. Against this backdrop, the Sweden hyperscale data center market rewards operators capable of pairing energy transparency with rapid power-density scaling
Sweden Hyperscale Data Center Industry Leaders
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Amazon Web Services, Inc.
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Microsoft Corporation
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Google LLC
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Meta Platforms, Inc.
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Digital Realty Trust, Inc.
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- May 2025: CapMan Infra acquired three data centers in Sweden from EcoDataCenter as part of EcoDataCenter's strategic pivot towards hyperscale operations, indicating a significant shift in the market towards larger-scale facilities designed for hyperscale client
- April 2025: Macquarie Asset Management made substantial investments totaling over USD 17 billion in Applied Digital and Aligned Data Centers to enhance AI and high-performance computing infrastructure, demonstrating the increasing financial interest in specialized data center facilities capable of supporting advanced computing workloads
- February 2025: Evroc outlined plans for a 96 MW AI data center near Stockholm Arlanda Airport as part of a pan-European strategy .
Sweden Hyperscale Data Center Market Report Scope
Hyperscale data centers, also known as Enterprise Hyperscale facilities, are large-scale infrastructures owned and managed by the companies they support. These centers deliver a wide range of scalable applications and storage services to meet the needs of individuals and businesses. Designed for efficiency, they house thousands of servers alongside critical hardware like routers, switches, and storage disks. To ensure seamless operations, these facilities are equipped with advanced support systems, including power and cooling solutions, uninterruptible power supplies (UPS), and air distribution networks.
The Sweden Hyperscale Datacenter Market is Segmented by Data Center Type (Hyperscale Colocation, Enterprise/Hyperscale Self Build), By Service Type (IaaS ( Infrastructure-as-a-Service), PaaS ( Platform-as-a-Service), SaaS( Software-as-a-Service)), By End User (Cloud & IT, Telecom, Media & Entertainment, Government, BFSI, Manufacturing, E-Commerce, Other End User). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of USD (millions).
By Data Center Type | Hyperscale Colocation |
Enterprise/Hyperscale Self Build | |
By Service Type | IaaS ( Infrastructure-as-a-Service) |
PaaS ( Platform-as-a-Service) | |
SaaS( Software-as-a-Service) | |
By End User | Cloud & IT |
Telecom | |
Media & Entertainment | |
Government | |
BFSI | |
Manufacturing | |
E-Commerce | |
Other End User |
Hyperscale Colocation |
Enterprise/Hyperscale Self Build |
IaaS ( Infrastructure-as-a-Service) |
PaaS ( Platform-as-a-Service) |
SaaS( Software-as-a-Service) |
Cloud & IT |
Telecom |
Media & Entertainment |
Government |
BFSI |
Manufacturing |
E-Commerce |
Other End User |
Key Questions Answered in the Report
What is the current value of the Sweden hyperscale data center market?
The market stands at USD 1.95 billion in 2025 and is projected to reach USD 3.99 billion by 2030.
Which segment is growing the fastest?
Software-as-a-Service is the fastest-growing service type, expanding at a 12% CAGR through 2030.
Why are hyperscalers choosing Sweden over other Nordic countries?
They benefit from 98% fossil-free electricity, a cool climate that supports free-air cooling, and expanding sub-sea cable links that lower latency to major European hubs.
How significant are grid-capacity constraints in Stockholm?
Reserved demand already exceeds available supply by 580 MW, and relief will not arrive until new 400-kV lines are energized after 2027.
What power densities are AI workloads driving?
GPU-rich racks now require 30–50 kW, prompting liquid-cooling adoption that could reach 20% of live racks by 2025.
Page last updated on: June 11, 2025