Sweden’s Data Centre Market Set for Rapid Expansion

Sweden’s position as a data centre powerhouse in the Nordics is strengthening rapidly as growing digital transformation and climate-conscious infrastructure attract global investment.

According to new findings from Research and Markets, Sweden’s data centre sector—valued at US$2bn in 2024—is forecast to nearly double, reaching US$3.8bn by 2030.

The expectation is that the market will expand at a compound annual growth rate (CAGR) of 11.29%, supported by surging demand for cloud services, government support and infrastructure-friendly environmental conditions.

Stockholm at the core of cloud and colocation growth

The shift from on-premise infrastructure to cloud and colocation services is reshaping Sweden’s digital landscape.

Stockholm has emerged as the central hub, driven by hyperscalers such as AWS, Google and Microsoft, alongside established colocation providers like Equinix, Digital Realty and atNorth.

Fuelling the transition is enterprise demand for scalable, managed services that can support complex digital transformation programmes.

Research and Markets notes that Swedish organisations are increasingly moving away from standalone colocation in favour of full-service cloud platforms, particularly as hybrid cloud strategies become the norm.

The report highlights a significant uptick in the construction of third-party data centres. As of December 2024, Sweden’s total core and shell power capacity stood at approximately 160.8MW.

An additional 150MW is currently under construction or in the planning phase, with most sites expected to come online within the next one to two years.

Strategic investments by global operators

The Swedish market is now a magnet for international and domestic players, with key operators including Bahnhof, Conapto, EcoDataCenter, Ember, Glesys, Meta, Multigrid and STACK Infrastructure enhancing their regional presence.

Notably, hyperscalers are making long-term commitments. In March 2025, Google launched its Europe-north2 cloud region just outside Stockholm, marking its 42nd global and 13th European region.

By design, it supports customers such as IKEA, Nordnet and Tradera; the site further advances Google’s environmental targets through wind energy agreements totalling over 700MW.

Meta, AWS and Microsoft continue to build capacity and contribute to closing the regional IT skills gap, delivering training programmes and infrastructure expertise to meet Sweden’s growing need for digital talent.

Foad Shaikhzadeh, CEO of Lightera, previously commented on the trend of AI and cloud growth in Europe, stating, “Enterprises are no longer experimenting—they are executing. That means data centres need to support vast, intelligent workloads with efficiency, reliability and sustainability in mind.”

Cooling, climate and policy advantage

Sweden’s natural environment provides a critical competitive edge. The country’s cool climate supports free cooling strategies, which, along with heat reuse initiatives, help operators reduce energy consumption and environmental impact.

Public policy is contributing to the country’s data centre momentum. The Swedish government has implemented a suite of incentives, including simplified permitting and tax reductions for operators building in designated “free zones".

Research and Markets suggests that such pro-business legislation has made Sweden one of the most attractive locations for new-build digital infrastructure in Europe.

Telecom networks enable cloud integration

Robust connectivity remains essential for Sweden’s data centre success. Operators like Telia and Ericsson have rolled out commercial 5G across the country, supporting the high-speed, low-latency networking required for AI, machine learning and real-time applications.

The combination of scalable cloud services, next-generation mobile networks and favourable policy has positioned Sweden as a high-potential growth region for telecommunications providers and digital infrastructure investors alike.

Rising rents reflect market demand

Commercial land costs are on the rise, especially in Stockholm. Prime rents for data centre land reached US$1,000 per square metre in Q4 2024, reflecting the growing competition for space and demand from global providers looking to anchor long-term operations in the capital.

With demand continuing to rise and both hyperscalers and emerging entrants committing significant capital, Sweden’s data centre market is evolving into a critical engine of digital transformation for Europe and a focal point for telecom operators looking to scale their cloud-aligned services.