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DigiPlex Report Outlines Nordic Alternative for Hyperscalers Looking to Grow in Europe

DigiPlex, the Nordic leader for innovative, secure and sustainable data centres, has published a report summarising numerous data that underline the Nordic answer to overheating data center locations in Europe.

Traditional European data center locations considered by hyperscalers and international businesses are under increasing pressure. Shrinking availability of land for fast build and short time to market, constrained power supply and increasing demand for 100% sustainable energy, plus political and regulatory issues are all making DublinFrankfurtLondonAmsterdam and Paris less attractive. At the same time global leaders including Google, Facebook and Microsoft are choosing to establish data centers in the Nordic region because of its unique advantages. It is now one of the most attractive regions for data centers with an estimated $7billion of development agreed in 2018 and more in 2019.

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Today, DigiPlex has published a report to help international businesses understand the benefits of the Nordic region.

Ten Reasons to Locate Your Data Center in the Nordics covers areas important to site selection teams including speed to market; availability of power; sustainability credentials; skills and favourable business and political environment. It details how Nordic markets benefit from:

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  • Some of the lowest cost power in Europe, at 0.06 Euro per KWh, compared to more than double that (15 cents per KWh) in Germany.[i]
  • Plentiful renewable power – not only are Nordic countries net exporters of electricity[ii], but they lead the way in sustainable energy generation.
  • Cool climates, with even southern Nordic cities like Stockholm reporting summer temperatures 10-15°C cooler than Paris or London
  • Ample access to land with planning consent at prices far below the reported around £5 million per acre in London[iii]
  • Nordic countries are in the top 20 places to do business according to World Banks’ Doing Business 2019[iv] report. The UK is the only representative of DFLAP data center locations to make it into the top 20.
  • Unrivalled `green’ credentials not only from Nordic government’s commitment to sustainable energy generation, but through innovative heat-reuse schemes.

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The DigiPlex report also underlines the importance of political stability, low taxation, high quality of life and a skilled workforce as defining features of the Nordic region. With the predicted continued high growth rates of data, the need to invest in facilities that can not only cope with today’s loads, but allow rapid expansion to meet tomorrow’s, is paramount. The guide highlights the foundations to support this growth in the Nordic region.

Byrne Murphy, DigiPlex Founder and Chairman commented; “The traditional decision for hyperscale and international customers coming to Europe has been to locate in one of the five established markets known by their initials as DFLAP. But these markets are overheated, expensive, growth constrained and increasingly falling short on sustainability requirements. With equivalent connectivity, lower costs and much better green credentials, the Nordic markets now represent a real and sustainable alternative to DFLAP. Our guide puts the key data in one place and makes it easy for location teams to make their decisions.”

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