Five reasons why you should get involved in (green) data centers – Sweden’s new primary industry

May 16, 2018

Sweden is turning into the land of the data center. Did you know there are 1500 in the country? Or that they turnover 15bn SEK a year? It’s like the industrial revolution, but this time it’s a data revolution.

According to a study carried out by BCG, the data center growth rate stands at 14%. In terms of jobs, up to 27,000 new positions could be created. This is the same number of people that work in the pulp and paper or the metal industry today.

A high turnover, enviable growth rate and massive job creation have made data centers Sweden’s new primary industry. Here are five reasons why Sweden appeals to data centre companies:

business man and his network

 

  1. Fossil free electricity – renewable power makes up the majority of energy supply in the country.
  2. District heating systems – these networks of residential heating systems are almost unique to Sweden and bring opportunities to reuse excess warmth from server rooms.
  3. Connectivity – fibre highways criss-cross the country offering super-fast connections for video streaming and other services.
  4. Skills – data centers need access to trained personnel, which they can find in Sweden
  5. Cost  – Sweden's low energy cost with an energy tax on 0,005 SEK/KWh.

Interestingly, the Swedish data center explosion appears to be concentrated north of the Dal River (Dalälven), an area not known for its economic might. Plentiful renewable power entices operators, whose only real need is multiple fibre connections.

And data centers bring significant advantages to these more rural regions. Big facilities attract other IT and cloud operators, like bees to a honey pot. In turn, these companies attract even more suppliers and services building up an ecosystem of tech business. Suddenly you have a new economic hub.

But what does this mean for your business? If you run a construction, infrastructure, IT, cloud or consulting company, you could profit greatly from Sweden’s data center growth, especially if you are based in a rural area.