Norway Data Center - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Norway Data Center Market size is estimated at 443.8 MW in 2024, and is expected to reach 696.6 MW by 2029, growing at a CAGR of 9.43%. Further, the market is expected to generate colocation revenue of USD 902.8 Million in 2024 and is projected to reach USD 1,416.9 Million by 2029, growing at a CAGR of 9.43% during the forecast period (2024-2029).
Tier 3 data center accounted for majority share in terms of volume in 2023, and is expected to dominate through out the forecasted period
Growing awareness among countries to increase sustainability practices and offer a better quality of life to its citizens has led to the rising number of smart cities in Norway. Evolving smart cities, in addition to factors such as the use of smart devices for streaming, playing games, transactions, online food ordering, home security, and lighting, have led to increased consumption of data.
Tier 3 and tier 4 data centers have advanced infrastructure facilities and offer additional features such as remote assistance, disaster recovery, lower downtime, and low latency; therefore, large enterprises like content-oriented companies prefer using these data centers. Tier 3 and tier 4 facilities are expected to dominate the market during the forecast period, with 59.2% and 39.5%, respectively, of the studied market by 2029. Tier 3 is expected to witness a decrease in market share, while tier 4 data centers will gain traction due to the country's increasing digital inclusion.
For instance, around 1.9 million people used food delivery applications for ordering food in Norway, which generated an annual value of around USD 223.9 million in 2022, suggesting the growing acceptance of quick commerce software. Also, since the number of users accessing social media in Norway increased from 3 million in 2014 to 4.75 million in 2022, this has led to clients opting for tier 4 data centers to provide uninterrupted service. Streaming services require delivering high-quality content and low latency for the best viewing experience.
Hence, growing data consumption is expected to increase the IT load capacity of tier 4 data centers from 105.2 MW in 2023 to 293.4 MW by 2029 at a CAGR of 18.65%.
Norway Data Center Market Trends
Increasing number of 5G-enabled smartphones and internet surge lead to boost the market demand
Smartphone usage in Norway will increase at a CAGR of about 0.89% from 2022 to 2029. About 86% users accessed the internet everyday using their smartphones in Norway in 2021, compared to about 85% accessing in 2018, and 74% in 2016. As of 2021, the users aged between the age group of 16-19 years comprised about 99%, followed by 96% belonging to the age group of 20-24 years and 25 to 44 years, highlighting how the young and mature audience, both contribute significantly to the overall smartphone adoption.
The data from Eurostat suggested that about 75% of internet users shopped online in 2018 in Norway, including about 40% accessing the e-commerce platforms through their smartphones. Mobile call service revenue increased from NOK 20.39 billion in 2019 to NOK 21.39 billion in 2021. This highlighted the buying power and requirement of smartphones among the buyers in the country, contributing to the increasing number of smartphones. As more 5G-enabled smartphones are available in Norway, users will continue to buy the devices and leverage the high average download speeds.
With a high smartphone adoption rate of more than 96% of users preferring Apple smartphones in 2020, compared to about 91% accessing smartphones as of 2017, the growth rate is bound to increase with high uptake during the forecast period. As the country is set to account for better penetration, the rise in the number of 5G-enabled smartphones in the region may create more data-generating points and demand for data centers to provide the required processing platform for smartphone-centric software and online storage options in Norway.
Increasing FTTH users and fiber network is boosting the data speed leading to demand for data center
Broadband connectivity in Norway accounted for a major dependence on fiber connectivity as of 2022. Since only a few wholesale network users depended on copper-based broadband networks, most service providers are considering shutting down the copper network, shifting the services completely to fiber and DSL-supported services. As of 2023, Telenor, one of the major service providers, announced shutting down its copper network, emphasizing 5G and fiber roll-outs.
The overall broadband speeds of the country accounted for about 109.42 Mbps in 2022, compared to about 104.02 Mbps in 2021. The drastic shift to fiber may attract major infrastructural opportunities for the service providers by extending the services for FTTH users. This shift is supported by strategic partnerships among service providers, including the three-year partnership for fiber and FWA between Eltel Norway and Viken Fiber, accounting for about NOK 200 million.
As of 2020, the number of fixed broadband connections in Norway was reported to be about 2.3 million by the World Bank, increasing from about 2.21 million in 2018. With operators like Bayonette introducing FTTH services with data transfer capabilities of about 1 Gbps in 2013, the scenario is set to evolve for faster broadband speeds delivered through the fiber network in the country. The faster data transmission achieved due to the better FTTH services in the country is expected to contribute significantly to data generation, directly impacting the demand for data centers.
Norway Data Center Industry Overview
The Norway Data Center Market is fragmented, with the top five companies occupying 21.24%. The major players in this market are AQ Compute Data Center (Aquila Capital Management GmbH), Bulk Infrastructure Group AS, GlobalConnect AB, Orange Business Services AS (Basefarm) and Storespeed AS (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Tier 3 data center accounted for majority share in terms of volume in 2023, and is expected to dominate through out the forecasted period
Growing awareness among countries to increase sustainability practices and offer a better quality of life to its citizens has led to the rising number of smart cities in Norway. Evolving smart cities, in addition to factors such as the use of smart devices for streaming, playing games, transactions, online food ordering, home security, and lighting, have led to increased consumption of data.
Tier 3 and tier 4 data centers have advanced infrastructure facilities and offer additional features such as remote assistance, disaster recovery, lower downtime, and low latency; therefore, large enterprises like content-oriented companies prefer using these data centers. Tier 3 and tier 4 facilities are expected to dominate the market during the forecast period, with 59.2% and 39.5%, respectively, of the studied market by 2029. Tier 3 is expected to witness a decrease in market share, while tier 4 data centers will gain traction due to the country's increasing digital inclusion.
For instance, around 1.9 million people used food delivery applications for ordering food in Norway, which generated an annual value of around USD 223.9 million in 2022, suggesting the growing acceptance of quick commerce software. Also, since the number of users accessing social media in Norway increased from 3 million in 2014 to 4.75 million in 2022, this has led to clients opting for tier 4 data centers to provide uninterrupted service. Streaming services require delivering high-quality content and low latency for the best viewing experience.
Hence, growing data consumption is expected to increase the IT load capacity of tier 4 data centers from 105.2 MW in 2023 to 293.4 MW by 2029 at a CAGR of 18.65%.
Norway Data Center Market Trends
Increasing number of 5G-enabled smartphones and internet surge lead to boost the market demand
Smartphone usage in Norway will increase at a CAGR of about 0.89% from 2022 to 2029. About 86% users accessed the internet everyday using their smartphones in Norway in 2021, compared to about 85% accessing in 2018, and 74% in 2016. As of 2021, the users aged between the age group of 16-19 years comprised about 99%, followed by 96% belonging to the age group of 20-24 years and 25 to 44 years, highlighting how the young and mature audience, both contribute significantly to the overall smartphone adoption.
The data from Eurostat suggested that about 75% of internet users shopped online in 2018 in Norway, including about 40% accessing the e-commerce platforms through their smartphones. Mobile call service revenue increased from NOK 20.39 billion in 2019 to NOK 21.39 billion in 2021. This highlighted the buying power and requirement of smartphones among the buyers in the country, contributing to the increasing number of smartphones. As more 5G-enabled smartphones are available in Norway, users will continue to buy the devices and leverage the high average download speeds.
With a high smartphone adoption rate of more than 96% of users preferring Apple smartphones in 2020, compared to about 91% accessing smartphones as of 2017, the growth rate is bound to increase with high uptake during the forecast period. As the country is set to account for better penetration, the rise in the number of 5G-enabled smartphones in the region may create more data-generating points and demand for data centers to provide the required processing platform for smartphone-centric software and online storage options in Norway.
Increasing FTTH users and fiber network is boosting the data speed leading to demand for data center
Broadband connectivity in Norway accounted for a major dependence on fiber connectivity as of 2022. Since only a few wholesale network users depended on copper-based broadband networks, most service providers are considering shutting down the copper network, shifting the services completely to fiber and DSL-supported services. As of 2023, Telenor, one of the major service providers, announced shutting down its copper network, emphasizing 5G and fiber roll-outs.
The overall broadband speeds of the country accounted for about 109.42 Mbps in 2022, compared to about 104.02 Mbps in 2021. The drastic shift to fiber may attract major infrastructural opportunities for the service providers by extending the services for FTTH users. This shift is supported by strategic partnerships among service providers, including the three-year partnership for fiber and FWA between Eltel Norway and Viken Fiber, accounting for about NOK 200 million.
As of 2020, the number of fixed broadband connections in Norway was reported to be about 2.3 million by the World Bank, increasing from about 2.21 million in 2018. With operators like Bayonette introducing FTTH services with data transfer capabilities of about 1 Gbps in 2013, the scenario is set to evolve for faster broadband speeds delivered through the fiber network in the country. The faster data transmission achieved due to the better FTTH services in the country is expected to contribute significantly to data generation, directly impacting the demand for data centers.
Norway Data Center Industry Overview
The Norway Data Center Market is fragmented, with the top five companies occupying 21.24%. The major players in this market are AQ Compute Data Center (Aquila Capital Management GmbH), Bulk Infrastructure Group AS, GlobalConnect AB, Orange Business Services AS (Basefarm) and Storespeed AS (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 EXECUTIVE SUMMARY & KEY FINDINGS
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 MARKET OUTLOOK
4.1 It Load Capacity
4.2 Raised Floor Space
4.3 Colocation Revenue
4.4 Installed Racks
4.5 Rack Space Utilization
4.6 Submarine Cable
5 KEY INDUSTRY TRENDS
5.1 Smartphone Users
5.2 Data Traffic Per Smartphone
5.3 Mobile Data Speed
5.4 Broadband Data Speed
5.5 Fiber Connectivity Network
5.6 Regulatory Framework
5.6.1 Norway
5.7 Value Chain & Distribution Channel Analysis
6 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
6.1 Hotspot
6.1.1 Oslo
6.1.2 Vestland
6.1.3 Rest of Norway
6.2 Data Center Size
6.2.1 Large
6.2.2 Massive
6.2.3 Medium
6.2.4 Mega
6.2.5 Small
6.3 Tier Type
6.3.1 Tier 1 and
6.3.2 Tier
6.3.3 Tier
6.4 Absorption
6.4.1 Non-Utilized
6.4.2 Utilized
6.4.2.1 By Colocation Type
6.4.2.1.1 Hyperscale
6.4.2.1.2 Retail
6.4.2.1.3 Wholesale
6.4.2.2 By End User
6.4.2.2.1 BFSI
6.4.2.2.2 Cloud
6.4.2.2.3 E-Commerce
6.4.2.2.4 Government
6.4.2.2.5 Manufacturing
6.4.2.2.6 Media & Entertainment
6.4.2.2.7 Telecom
6.4.2.2.8 Other End User
7 COMPETITIVE LANDSCAPE
7.1 Market Share Analysis
7.2 Company Landscape
7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
7.3.1 AQ Compute Data Center (Aquila Capital Management GmbH)
7.3.2 Blix Solutions AS
7.3.3 BlueFjords
7.3.4 Bulk Infrastructure Group AS
7.3.5 GlobalConnect AB
7.3.6 Green Mountain AS
7.3.7 Lefdal Mine Data Center AS
7.3.8 New Mining (Dataroom AS)
7.3.9 Nordic Hub Data Centers AS
7.3.10 Orange Business Services AS (Basefarm)
7.3.11 Stack Infrastructure Inc.
7.3.12 Storespeed AS
7.4 LIST OF COMPANIES STUDIED
8 KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9 APPENDIX
9.1 Global Overview
9.1.1 Overview
9.1.2 Porter’s Five Forces Framework
9.1.3 Global Value Chain Analysis
9.1.4 Global Market Size and DROs
9.2 Sources & References
9.3 List of Tables & Figures
9.4 Primary Insights
9.5 Data Pack
9.6 Glossary of Terms
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 MARKET OUTLOOK
4.1 It Load Capacity
4.2 Raised Floor Space
4.3 Colocation Revenue
4.4 Installed Racks
4.5 Rack Space Utilization
4.6 Submarine Cable
5 KEY INDUSTRY TRENDS
5.1 Smartphone Users
5.2 Data Traffic Per Smartphone
5.3 Mobile Data Speed
5.4 Broadband Data Speed
5.5 Fiber Connectivity Network
5.6 Regulatory Framework
5.6.1 Norway
5.7 Value Chain & Distribution Channel Analysis
6 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
6.1 Hotspot
6.1.1 Oslo
6.1.2 Vestland
6.1.3 Rest of Norway
6.2 Data Center Size
6.2.1 Large
6.2.2 Massive
6.2.3 Medium
6.2.4 Mega
6.2.5 Small
6.3 Tier Type
6.3.1 Tier 1 and
6.3.2 Tier
6.3.3 Tier
6.4 Absorption
6.4.1 Non-Utilized
6.4.2 Utilized
6.4.2.1 By Colocation Type
6.4.2.1.1 Hyperscale
6.4.2.1.2 Retail
6.4.2.1.3 Wholesale
6.4.2.2 By End User
6.4.2.2.1 BFSI
6.4.2.2.2 Cloud
6.4.2.2.3 E-Commerce
6.4.2.2.4 Government
6.4.2.2.5 Manufacturing
6.4.2.2.6 Media & Entertainment
6.4.2.2.7 Telecom
6.4.2.2.8 Other End User
7 COMPETITIVE LANDSCAPE
7.1 Market Share Analysis
7.2 Company Landscape
7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
7.3.1 AQ Compute Data Center (Aquila Capital Management GmbH)
7.3.2 Blix Solutions AS
7.3.3 BlueFjords
7.3.4 Bulk Infrastructure Group AS
7.3.5 GlobalConnect AB
7.3.6 Green Mountain AS
7.3.7 Lefdal Mine Data Center AS
7.3.8 New Mining (Dataroom AS)
7.3.9 Nordic Hub Data Centers AS
7.3.10 Orange Business Services AS (Basefarm)
7.3.11 Stack Infrastructure Inc.
7.3.12 Storespeed AS
7.4 LIST OF COMPANIES STUDIED
8 KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9 APPENDIX
9.1 Global Overview
9.1.1 Overview
9.1.2 Porter’s Five Forces Framework
9.1.3 Global Value Chain Analysis
9.1.4 Global Market Size and DROs
9.2 Sources & References
9.3 List of Tables & Figures
9.4 Primary Insights
9.5 Data Pack
9.6 Glossary of Terms
