Why Stockholm is an attractive choice for data centers
Accessible, sustainable and energy-efficient -- these are just some of the qualities that have made Stockholm and the surrounding region a hotspot for international data centers.
Multiple factors combine to make Stockholm the ideal location for data centers:
- Fossil-free energy
- Reliable electricity grids
- The EU’s lowest energy costs
- Fast connectivity, low latency
- Speed to market
- The Nordic region’s main business and finance hub
- Mature tech ecosystem
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Business Development Manager
Sweden is an attractive market; it is cost-efficient thanks to low energy prices, and it’s politically and financially stable. Plus the climate here helps in reducing our impact on the environment when we cool our data centres.
Maria Sundvall, Managing Director, Equinix Sweden
Why data centers put down roots in Stockholm
Global market leaders like Amazon Web Services and Microsoft have invested in multiple datacenters in the greater Stockholm region, while Google has acquired land.
So what attracts these hyperscalers to the Stockholm region? Much of the interest can be attributed to low energy costs, sustainable and reliable energy sources and speed to market.
A colocation hotspot
In Scandinavia the colocation market is heavily concentrated in the Stockholm region. The city is the Nordic region’s main business and finance hub, is easily accessible from Stockholm-Arlanda International Airport, and tops the charts for connectivity.
The majority of Global 2000 companies with a presence in the Nordics have their regional headquarters in Stockholm. Prominent Swedish companies such as H&M, Ericsson, Scania, AstraZeneca and Electrolux are also headquartered here.
Europe's 'unicorn factory'
Stockholm also plays host to one of the most developed tech ecosystems in the world. The city’s competitive advantage stems from a long tradition of technological innovation.
Known as Europe’s 'unicorn factory', Stockholm has more $1 billion-plus companies per capita than anywhere outside of Silicon Valley thanks to companies like Skype, Spotify, Klarna, King, Mojang and iZettle. Stockholm’s tech scene has developed over decades into what today is a world-class, mature startup hub.
The connectivity advantage
Stockholm is an international forerunner for connectivity: the region accounts for a massive 55% of all network traffic in the Nordic region. The city is also home to no fewer than 35 colocation hubs.
The benefits of low latency
Another important criterion for data centers to consider is latency. A key finding of a recent white paper from Stockholm Data Parks and Telia Carrier showed that Stockholm is located within a 30-millisecond round trip delay from a potential digital market of more than 350 million end-users.
The Stockholm Business Alliance
Thanks to the Stockholm Business Alliance, a coalition of 56 municipalities in the greater Stockholm region, we can help you find a site that is not restricted to the city limits. For instance: Amazon Web Services has sites in Eskilstuna, Katrineholm, and Västerås; Microsoft is building facilities in Gävle and Sandviken; and Google has acquired land in Avesta.
Stockholm has a strong start-up scene and is the main hub for many high-tech firms that are pushing the boundaries of technological development.
Fredrik Jansson, DigiPlex Chief Strategy & Marketing/Communications Officer
Stockholm Data Parks
The City of Stockholm launched Stockholm Data Parks to attract investments in data centers where waste heat is recycled and used to heat the city. This is a partnership comprising the City of Stockholm, Invest Stockholm, Stockholm Exergi, Ellevio and Stokab.
The initiative seeks to help large data centers maximize cost efficiency and sustainability with low cost renewable electricity and paid-for heat recovery which is then distributed to Stockholm’s heating system. The long-term objective is to supply 10 percent of the city’s residential heating demand through recovered excess heat from data centers which will help the City become fossil fuel free by 2040.
Stockholm Data Parks recently announced three new investments: Interxion-A Digital Realty Company, Advania Data Centers and IP-Only. More examples of companies already supplying excess heat to Stockholm Exergi are Ericsson and Bahnhof.
Stockholm Exergi has been promoting heat recovery since 1979, with IBM’s data center as the first supplier of excess heat. Starting 2012, the work was intensified and a heat recovery offering named Open District Heating was launched. Today, there are some 30+ companies connected to the system.
Opportunities in Stockholm Data Parks
Currently there is one site available in Brista, close to Stockholm's international airport Arlanda, with 220,000 square metres available for data center investments that include heat recovery.
In 2021, an additional 20,000-square metre site will be launched in Skarpnäck, south of Stockholm.
You can find more information about site availability on the Stockholm Data Parks website.Contact us