Data Centers Denmark Magazine 2025

Data Centers Denmark MAGAZINE

INTERVIEW: Topdanmark CIO Kasper Tjørntved Davidsen

ROBUST, SCALABLE AND ADAPTABLE AI INFRASTRUCTURE INTERVIEW: Isabelle Kemlin

FROM AI TO QUANTUM: THE NEXT DECADE OF NORDIC DATA CENTERS ATNORTH CEO:

2025

MARKET DYNAMICS ARE CHANGING IN THE DATA CENTER BUSINESS

ABOUT Publisher

The team

Danish Data Center Industry Vendersgade 74, Building B, 7000 Fredericia, Denmark

Christine Kjær Jacobsen, Editor in chief Henrik Hansen Merima Dzanic Sofie Teglgaard

About This magazine is a publication by the Danish Data Center Industry.

Contributors Kurt Henriksen

Data Centers Denmark is the magazine for the Danish and Nordic Data center ecosystem and digital infrastructure industry.

Supported by BOS Power Coromatic Schneider Electric Net Zero Innovation Hub For Data Centers Thanks to Kasper Tjørntved Davidsen Joakim Petersen Isabelle Kemlin Alberto Ravagni John Jørgensen Pernille Hoffmann Topdanmark Cover Press photo: Helle Dahl, Topdanmark Thanks to Topdanmark and Kasper Tjørntved Davidsen

Copyright Danish Data Center Industry 2025 No part of this magazine may be reproduced and/or disclosed by print, photocopy, film, or any other means, without the written consent of Danish Data Center Industry.

The information provided in this publication is for general informational purposes only. All information is provided in good faith, however, we make no warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information provided in this publication.

Issue 1, 2025 Digital Publication date 10 March 2025 Contact: info@datacenterindustrien.dk 2

CONTENTS STRATEGY 06

Executive Summary

by CEO Henrik Hansen

08

Digital Infrastructure is essential for successful AI rollout

MARKET & INVESTMENT TRENDS 13

Sneak Peek: Danish Market Report 2025 Trends, investment analysis and growth opportunities

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Robust, scalable and adaptable AI Infrastructure We had the opportunity to ask Kasper Tjørntved Davidsen, CIO at Topdanmark, about security, scalable AI infrastucture and the benefits - and challenges - of running an on-premise data center.

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Annual Meeting: A chaotic and crazy world with brand new opportunities Powering the future: Investment trends and challenges in the Nordics What will drive future investments trends as the data center industry prepares for a surge in workloads, density and energy use? We asked Joakim Petersen 5 quick questions on future investment trends.

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Danish Data Center Ecosystem Guide

INNOVATION & PARTNERSHIPS

32

Spotlight: NOVENCO - From small Danish manufacturer to leading data center supplier Since their first contract for Meta in 2013, NOVENCO has been on a growth journey.

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Spotlight: Digital Realty - AI ready data center hosts Denmarks new supercomputer In this member spotlight, Pernille Hoffmann, Managing Director, Nordics, at Digital Realty, gives her perspectives on Denmark’s first supercomputer and the data center industry in Denmark.

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38

Interview: Innovative partnerships drive sustainability at scale in data centers Alberto Ravagni discusses the biggest challenges data centers face in the twin transition, the importance of partnerships, and how to drive innovation at scale.

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Danfoss leads the way with climate friendly data center

THEME: NORDICS & POWER 46

From AI to quantum: The next decade of Nordic data centers Isabelle Kemlin discusses the key trends driving growth in the Nordics, as well as the importance of grid integration and energy efficiency.

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atNorth CEO: Market dynamics are changing in the data center business We had the opportunity to talk to atNorth CEO Eyjólfur Magnús Kristinsson about atNorth’s newest data center project (DEN02), but also about his perspectives on the Danish and regional market and future outlooks for AI and HPC workloads.

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Nordic relationships solidified at Nordic board meeting

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Nordic AI Infrastructure Forum: A deep dive into AI and data centers

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Nordic Data Center Week: Children, sustainability and our digital future

THEME: HEAT REUSE 62

DDI and Bulk bring together key stakeholders for a dialogue on the crucial role of data centers

64

New political agreement removes price cap on surplus heat

66

Microsoft and VEKS to utilize surplus heat from Danish Data center

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The AI revolution requires a steady hand at the helm 5

STRATEGY

EXECUTIVE SUMMARY

Data Centers are more relevant than ever WRITTEN BY

Henrik Hansen

In an increasingly digital world, data is the cornerstone for both business and societal functions. As data generation and consumption surges, data centers have emerged as the backbone of the digital economy. Adhering to stringent standards for physical and cybersecurity, data centers play a crucial role in ensuring the secure storage, processing and dissemination of critical information for business and government.

As digitalization, AI, and quantum technology advance, the future role of the data center industry will become increasingly pivotal, transforming businss operations and interactions. This evolution has significant socioeconomic implications, impacting society and our global competitiveness. Modern data centers enable flexible working methods, support the future healthcare system and contribute to the development of a welfare society.

An uncertain world calls for bold solutions With a new national AI strategy, unstable geopolitical conditions, and AI changing the game for almost all sectors, data centers are more relevant than ever.

Sustainability and energy efficiency are key focus areas as the industry prepares to support future highdensity AI applications. Whilst AI undoubtedly will use more energy, it can also be part of the solution.

In Denmark, we started to see new investments popping up in 2024 after a dry spell in 2023 and 2022.

As predicted in the past few market reports, uncertainty regarding AI has put a damper on new investments, as hyperscalers and colos alike have been figuring out the consequences. What will AI mean for design, power, and cooling? What are the consequences for networks and fiber cables to be able to handle the growing amount of data? What will future business models look like when it comes to investments in land and data centers? There is no definitive answers, but they are questions we seek to address in this magazine and at Data Centers Denmark 2025.

This will continue to be a focus area in 2025, in close cooperation with TSOs, energy companies, and the members in the data center ecosystem.

In this magazine, you can read our input to the national AI strategy, input we encourage being incorporated into future evaluations of the national strategy.

Focus on energy, power and grid connection Energy remains essential for our industry, and DDI will address it across events throughout the year in close cooperation with our Nordic partners.

At DataCloud Global Congress 2025, the Nordic associations will come together in a panel about renewable energy and “what to learn from the Nordics” sharing our experiences, challenges and success stories with the broader industry.

At DDI we are determined to support initiatives and projects that will truly help decarbonize the data center industry.

DDI has grown significantly over the years. We have expanded our secretariat significantly this year to support our members and provide them with high quality content, events and networking opportunities.

With the help of our board of directors, I am excited to continue building on the great foundation we have built in the past 8 years.

Denmarks new AI strategy: like building an electric car without a battery At the end of 2024, the Danish government launched a new national AI strategy. Despite containing positive elements and ambitious objectives, the new AI strategy lacks focus on infrastructure and energy. The Danish Data Center Industry encourages digitization and the development of green power to be integrated, so that Denmark can succeed in the double transition, where we are ambitious in the digital as well as the green areas.

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STRATEGY

Digital Infrastructure is essential for the successful rollout of AI Mario Draghi's report from September 2024 paints a bleak picture of Europe's competitiveness under pressure. Draghi also points to new technology and artificial intelligence, particularly generative AI, as a major opportunity for improved competitiveness and innovation.

Robust and sustainable digital infrastructure and data centers are the foundation for developing and applying AI and quantum technology while achieving our green goals.

The expansion of AI-ready data centers in Denmark opens entirely new opportunities for research and development in health, climate, and security.

Additionally, data centers create economic development and jobs in the less populated areas of the country, the same areas where large parts of the future production of renewable energy will also take place. This means that AI deployment, with its great potential for society, can happen in a sustainable way.

In the future, data centers will run on 100% renewable energy, thus also providing investors with economic security for their investments in, for example, solar parks and wind.

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1

Recommendations from the Danish Data Center Industry In November 2024, The Danish Data Center Industry recommended that the following principles be incorporated into a national AI strategy. The strategy published in December 2024 did not include infrastructure and energy, but our recommendations still stand.

Infrastructure and Capacity: The strategy should recognize the importance of digital infrastructure and data center capacity to handle large amounts of data in a secure and sustainable manner, and to provide the necessary computing power required by modern digitalization and AI utilization. This includes access to green energy, a robust and future-proof power grid, and network connections.

Education and Skills Development: The strategy hould ensure investments in education and training of current and future workforce so that employees can meet the technological demands of AI and data center operations. This can be achieved through strengthened cooperation with and prioritization of technical schools, universities, etc., that educate employees for critical infrastructure.

Energy Efficiency and Sustainability: The strategy should create access to green energy sources that can be integrated into our energy systems. The expansion of renewable energy is too slow, and the permitting processes should be accelerated. At the same time, Denmark should promote investments in data centers that are as energy efficient as possible.

The use of surplus heat for district heating and industry should also be promoted by removing the price cap on surplus heat. The goal should be for Denmark to be a leading and exporting country for green data center innovation. The Net Zero Innovation Hub in Fredericia is a good example of the role data centers can play in collaborations.

Regional Development: The strategy should consider how future AI data centers can further contribute to regional development and create economic growth throughout Denmark. Data centers bring new and well-paid jobs to local communities.

Collaboration and Partnerships in Research and Innovation: The strategy should support cross-sector collaboration between public, private, and academic institutions so that data centers can function as research and innovation centers for the development of sustainable AI technologies and participate in public-private partnerships (PPP).

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STRATEGY

Datacenters are frontrunners in innovation of green and secure solutions As cloud solutions develop, global companies such as Google, Microsoft, and AWS are investing in energy efficiency for their hyperscale data centers, which are now some of the world's most sustainable facilities.

According to the International Energy Agency, data centers worldwide have managed to keep energy consumption down despite the explosive data growth over the last 10 years.

Data centers are investing in new and green energy sources such as solar and wind through Power Purchase Agreements (PPAs) to reduce their carbon footprint. This also paves the way for more renewable energy in Denmark. For example, Google's PPA agreements have led to the construction of five large solar parks with a capacity of 167 MW of green electricity, which is added to the Danish power grid.

Denmark is a leader in utilizing surplus heat for district heating, industry, and agriculture with larger installations such as Meta in Odense, GlobalConnect and Microsoft in Høje-Taastrup, JN Data in Silkeborg, and Penta Infra in Albertslund. However, there are still structural, geographical, technical, and business barriers to fully exploiting the potential in Denmark and Europe, and the potential for surplus heat must therefore be assessed from data center to data center.

The industry collaborates on innovation and new solutions, including through the Net Zero Innovation Hub in Fredericia, which is a unique collaboration across the industry with participation from companies such as Microsoft, Google, Data4, Danfoss, Vertiv, and Schneider Electric.

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Jobs, Education and Local community The data center industry creates growth and development in various areas of the local community: Job creation: Data centers create a range of direct and indirect job opportunities, from temporary jobs during the construction phase to permanent jobs such as craftsmen and electricians, technicians and engineers, security guards, operations managers, and IT specialists. The long-term presence of high-tech companies can help brand and attract other industries to the local area, thereby creating additional indirect jobs and growth in the area.

Infrastructure: Data centers often invest in upgrades to local infrastructure that benefit the community, including roads, electricity, and internet connections. Data centers also invest significantly in projects and activities within the local community.

Education, skills development, and research: Data centers work closely with educational institutions.

In Denmark, institutions such as Fredericia Maskinmesterskole, University College Lillebælt, and Mercantec have close collaborations with several industry players, including Google, Apple, and Meta, to develop and promote targeted education and training programs. From 2020-24, Microsoft has reached 200,000 Danes with digital upskilling as part of its data center investment.

Data centers are also involved in research and development, which helps create additional educational and research opportunities for students and researchers. In Denmark, DTU, Aalborg University, and SDU are among those working on the development of optimization technologies for the data center industry

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MARKET & INVESTMENT TRENDS

TRENDS, INVESTMENT ANALYSIS & GROWTH OPPORTUNITIES

DANISH DATA CENTER MARKET REPORT 2025 The following pages include an exclusive sneak peak and executive summary of the 5th annual Danish Market Report.

The full report includes TRENDS, INVESTMENT ANALYSIS & GROWTH OPPORTUNITIES and is free for DDI members.

Not yet a member? Get in touch to hear your options

Free for DDI members

MARKET & INVESTMENT TRENDS

2025 MARKET REPORT

Executive Summary European market outlook: The European data center market is undergoing a major transformation, driven by institutional investors and private equity targeting the growing colocation segment. As Europe prepares for an AI-powered future, data center demand is projected to grow from 10 GW today to 35 GW by 2030—potentially accounting for 5% of the continent’s total power usage.

End-user strategies: AI is prompting IT leaders to adopt hybrid strategies— leveraging colocation for training and cloud for inference—while reassessing infrastructure design and energy flexibility. To remain competitive, colocation providers must embrace modular infrastructure, sustainable design, and participation in reserve energy markets.

Danish data center market outlook: In Denmark, the data center sector is maturing rapidly, with hyperscale operations currently representing 60% of all workloads. However, a minor temporary slowdown in hyperscale buildouts is expected by 2026.

At the same time, the colocation market is accelerating, forecasted to reach 40% of workloads by 2028. This segment is becoming more fragmented, with domestic players expanding and new entrants emerging.

AI is prompting IT leaders to adopt hybrid strategies, leveraging colocation for training and cloud for inference, while reassessing infrastructure design and energy flexibility. To remain competitive, colocation providers are increasingly turning to modular infrastructure, sustainable design, and participating in reserve energy markets. Denmark offers a unique positioning for sustainable data center investments, given the favourable market conditions.

Impact of AI on data center investments: To support growing AI and high-performance computing demands, operators are deploying highdensity racks (100 kW+), which require advanced power and cooling systems. Limited land and grid capacity in traditional markets are shifting investment focus toward Tier II and III locations, with an emphasis on on-site generation, microgrids, and hybrid energy solutions.

Energy infrastructure developments: In Denmark, the TSO anticipates significant growth in data center power demand, reinforcing the need for new sourcing strategies. Data centers are expected to contribute to the national green transition by supporting hydrogen, grid balancing, and waste heat reuse.

Regulatory pressure is also increasing, pushing hyperscalers to improve emissions reporting and energy tracking.

More data centers are expected to reuse their excess heat on current and future data centers.

Interested in the full market report and analysis?

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MARKET & INVESTMENT TRENDS

2025 MARKET REPORT

Market Composition The estimated installed capacity stands at 264 megawatts (MW), reflecting an increase of 44 MW from the previous year.

Around, 139 MW is under construction (Q1), with completion expected within the next 1-2 years. Some projects initially scheduled for 2024 have been delayed and are now expected to be completed in 2025.

DDI’s investment outlook in Denmark is based on the following premises: In the short term, upcoming data center construction with an additional power capacity of 139 MW to be scalable within the next 1-2 years In the long term, potential for an additional +526MW in reserved data center power capacity, in the pipeline by the end of 2028.

With several projects going live this year, the total installed capacity is expected to potentially reach an estimated total of 406MW by the end of 2025.

71 MW

335 MW

Installed colocation

Total installed

264 MW

139 MW

Installed hyperscale

Colocation

Hyperscale

Enterprise

Under construction

The current capacity distribution in Denmark derives largely from hyperscale workloads, which includes both hyperscale enterprise and hyperscale cloud activity.

The Danish market continues to be primarily driven by hyperscale capacity at 60%, colocation 30% and enterprise 10%.

The colocation segment has been steadily growing in Denmark, and is expected to increase significantly over the next few years. By 2028, the colo segment is projected to make up 40% of of the total workload in the country.

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MARKET & INVESTMENT TRENDS

2025 MARKET REPORT

Table of contents PART 1: EUROPEAN DATA CENTER INDUSTRY DEVELOPMENTS 1. Investment outlook 2. Drivers 3. Market restraints 4. Development in key markets PART 2: EUROPEAN ENERGY DIRECTIVE 1. Key developments and progress 2. Reporting obligations 3. Reporting responsibilities PART 3: OVERVIEW OF DATA CENTER INVESTMENTS IN DENMARK 1. Map: Key hyperscale & colocation investments 2. Map: Overview of potential pipeline

PART 4: MARKET SIZE AND FORECAST 2025-2028 1. Market composition & size 2. Expected power capacity growth 2025-2028 3. Overview of data centers by racks 4. Overview of key vendors & operators PART 5: ENERGY & SUSTAINABILITY 1. Danish TSO perspective on data center developments - capacity and power 2. Data centers role in Denmarks future energy system 3, Map: Denmarks Power Production Overview 4. Electricity price forecasts 5. Map: Heat reuse projects PART 6: Market analysis 1. Enterprise perspective 2. Hyperscale perspective 3. Colocation perspective

Interested in the full market report and analysis?

This exclusive sneak peak is made available to you as a participant at Data Centers Denmark 2025. The annual Danish Data Center Market report is free for DDI members and available for purchase for non-members.

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MARKET & INVESTMENT TRENDS

INTERVIEW:KASPER TJØRNTVED DAVIDSEN

Robust, scalable and adaptable AI Infrastructure WRITTEN BY

Christine Kjær Jacobsen

We had the opportunity to ask Kasper Tjørntved Davidsen, CIO at Topdanmark, about security, scalable AI infrastucture, and the benefits - and challenges - of running an on-premise data center.

Kasper Tjørntved Davidsen joined Topdanmark as CIO in 2023 to implement an industry-changing digital transformation. His task: Make it easier to be a customer while also strengthening the underlying infrastructure and operations. One of the goals: To be able to handle 80% of all customer inquiries in under 20 seconds. AI would later come to play a key role in this mission.

Stable and Secure at the center Topdanmark was one of the first insurance companies in Denmark to work with AI, in particular Machine Learning, as well as being early adopters of ethical principles for the use of AI. These principles ensure that the use of AI is reliable, fact-based and unbiased, so that the models can be used safely and only for the intended purpose.

As part of this transformation, Topdanmark has announced massive investments into consolidating policy platforms and digitalization of its core business.

With growing investments in AI and IT infrastructure also comes an inherent need for increased focus on security across the stack.

Q: How has your role as CIO at Topdanmark evolved since you took on the position in 2023?

Q: What strategies do you employ to maintain robust security across your IT infrastructure?

Kasper: Since taking on the role of CIO at Topdanmark in 2023, my responsibilities have evolved in many ways, including making sure that Topdanmark takes a leading role in driving digital enablement for customers.

Kasper: Our security strategy is built on several key elements. We ensure compliance with relevant laws and regulations, such as DORA and GDPR, to protect data and systems to the highest standards. Security is integrated with both our IT and overall business strategy, supporting our goals and ensuring continuity and growth. We base our strategy on thorough risk assessments and an understanding of the current threat landscape, tailoring our measures to address the most pressing threats. Additionally, we consider our organization's security maturity level, ensuring our strategies are realistic and achievable while continuously improving our security practices.

The rapid growth in AI has been a significant factor in this evolution, as it presents both opportunities and challenges. We possibly have a “once in a lifetime” emergence of a new technology that can significantly increase our operational efficiency while developing innovative solutions that benefit our customers right at the engagement level.

At the same time, we live by the trust of our customers, and ensuring that we build compliant and secure solutions that operate with maximum operational stability is pivotal to our strategy, and to our success, in this rapidly changing technological landscape.

“Stable & secure” is, and will always be, at the core of what we do. This includes staying ahead of compliance requirements such as DORA and GDPR, which are critical for protecting our data and systems. In my view, it really boils down to striking a balance between maintaining our daily operations while still positioning us to drive innovation, introduce change and capitalize on emerging technologies.

Moreover, we maintain an active test regime to ensure that our governance and test policies are effective in practice. This involves regular testing and validation of our security measures to identify any gaps or weaknesses.

By continuously monitoring and evaluating our security controls, we can make necessary adjustments and improvements, ensuring that our policies are not only theoretically sound and “look good on slides”, but are also practically effective in protecting our organization.

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MARKET & INVESTMENT TRENDS

Topdanmark’s on-premise data center setup is an essential part of the framework behind their IT strategy to support a rapidly growing digital business footprint. It is meant to ensure enhanced network segmentation, enhanced workload segmentation, updated hardware, and improved security.

Q: What are the key challenges you face in managing your on-premise data center, and how do you address them?

To address this, we ensure that competencies are maintained either through sourcing or internally.

Another significant challenge is the cost and inflexibility associated with both horizontal and vertical scaling, which are both time-consuming and expensive. This is a condition we have to accept as a consequence of staying on-premise.

Kasper: One of the primary challenges in managing our on-premise data center is maintaining "full-stack" competencies, as we do not benefit from having parts or all of the infrastructure delivered as Infrastructure as a Service (IaaS) or similar solutions.

About Kasper Tjørntved Davidsen Kasper Tjørntved Davidsen is a seasoned leader in the field of information technology, currently serving as the Chief Information Officer (CIO) and member of the Group Executive Management at Topdanmark, one of Denmark's leading insurance companies.

With +15 years of experience in leading IT strategy, digital transformations, and innovation, Kasper is driving Topdanmark's technological initiatives and InsurTech agenda to build the digital insurance company of the future, where he has positioned the company as a frontrunner in GenAI with the launch of TopGPT, one of the first customer-facing GPTenabled chatbot in European insurance.

Prior to his role at Topdanmark, Kasper served as Group CTO of PayTech powerhouse, Nets/Nexi Group, where he led large-scale integrations across Europe after years of heavy M&A activity while ensuring stable & secure operations for critical payments infrastructure in the region. Kasper has also held leadership positions in LEMAN and KMD.

Future Outlook: "Digital First" is a key focus of Topdanmark's strategy, prioritizing the use of digital opportunities and AI before looking into traditional methods. This approach is crucial for achieving their ambitious digital goals.

Topdanmark's AI strategy is built on three key pillars: the implementation of Copilots for internal operations, the development of TopGPT to increase efficiency and satisfaction in customer interactions, and a forwardlooking perspective on the evolving role of AI within the company.

Q: How do you ensure that your IT architecture remains scalable and adaptable to future technological advancements?

Kasper: When Topdanmark embarked on the next leg of its datacenter journey, we faced a significant 'lifecycle management' challenge regarding our datacenter infrastructure. To avoid a scenario where multiple infrastructure renewals would occur simultaneously, we defined our preferred future lifecycle management approach before starting the hardware refresh. This structured implementation approach ensures that our IT architecture remains scalable and adaptable to future technological advancements.

Additionally, we have adopted a “cloud-right” strategy in our architecture, ensuring that our platforms are increasingly adaptable to migrate to the cloud while also being capable of absorbing workloads. This strategic optionality allows us to leverage the benefits of cloud where we see fit, such as scalability and flexibility, while maintaining control over our infrastructure. By continuously evaluating and updating our cloud strategy, we ensure that our IT architecture can adapt and continue to support our long-term business goals.

Q: Looking ahead, what trends or challenges will shape your 2025-2026?

Kasper: As we continue to advance our AI capabilities over the next few years, I believe that the critical questions we are asking ourselves now will evolve with the increasing global demand for compute to power AI models and new regulatory paradigms.

One of these questions is how we establish an AIcapable infrastructure setup that effectively balances the on-prem hosting of specialized Large Language Models while utilizing the largest models that we take for granted today, where cost tradeoffs are necessary.

This involves finding ‘the right balance’ between maintaining control and security with on-premises solutions, where potentially fine-tuned, smaller, more specialized models are best fit, while continuing to tap into the performance, flexibility, and scalability offered by cloud-based models where relevant.

A significant challenge ahead lies in understanding and scoping the necessary raw compute power required for running in-house models. Of course, there is a limit to the investment size we would like to undertake, but I believe that we need to explore whether to secure and control our own compute capabilities when we see AI becoming even more deeply integrated into our core business.

Ensuring our competitive edge by running models for workflows requiring on-prem processing and potentially achieving cost advantages by planning batch workflows that require heavy computing but are not time-critical is essential. This also requires experimenting, upskilling, and identifying the optimal position required for opensource models and eventually fine-tuning on-prem, continuing to balance the dependency on cloud-based closed models.

Ultimately, we need to ensure that our AI infrastructure is robust, scalable, and adaptable to achieve our strategic objectives without setting us on a trajectory towards irreversible vendor lock-in.

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MARKET & INVESTMENT TRENDS

ANNUAL MEETING 2025:

A chaotic and crazy world with brand new opportunities WRITTEN BY

Kurt Henriksen

"I want AI to do my laundry and dishes so that I can do art and writing, not for AI to do my art and writing so that I can do my laundry and dishes" said the author Joanna Maciejewska.

"But that is precisely what is happening right now," pointed out journalist, author, and debater Anders Kjærulff in a thought-provoking presentation at the Danish Data Center Industry's annual meeting in Copenhagen.

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Among many other titles, Anders Kjærulff can also list techno-critic, IT provocateur, and co-founder of the think tank "Analogiseringsstyrelsen" (ed: Analogisation Agency) on his business card. He describes himself not as a Luddite but compares himself to a literary critic – someone who loves literature but remains critical of it.

He urges us to think and talk much more seriously about how digitalization and AI actually impacts our society and human relationships.

His presentation began with a tour de force through the vast range of possibilities and mishaps that digital development has brought about. A lot has happened since humanity set foot on the Moon in 1969 with the assistance of a computer boasting just 4 KB of RAM. From the Eliza effect and the anthropomorphization of machines to dreams of transhumanism and singularity, we now face a present and future with, among other things, Neuralink and artificial intelligence.

“Throughout history, many have asked whether humans are even competent enough to inhabit the future. Will we be saved as a species, or simply eradicated because machines find us to be in the way?" Anders Kjærulff reflected, though he is primarily focused on future opportunities.

"Your industry will gain great benefits from all of this – self-driving cars, for example, will be a major advantage for the data center sector. Personally, however, I don’t think they will become popular until all manually driven cars are removed at once. Otherwise, they will perform maneuvers that self-driving cars cannot comprehend," he assessed.

Throughout history, many have asked whether humans are even competent enough to inhabit the future. Will we be saved as a species, or simply eradicated because machines find us to be in the way?

The IT debater generally encouraged the industry to adopt a self-critical and proactive stance, particularly regarding the massive energy consumption of data centers.

“Google and Microsoft each consume around 24 TWh globally – more than many nations. This will only increase in the future, and it will likely trigger protests.

We are already seeing this in Ireland, where data centers now account for more than 20% of electricity consumption, leading to ‘brownouts’ that cause periodic power outages for regular consumers," Anders Kjærulff pointed out.

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At the same time, he advocated for more robust backup systems for the most essential societal functions – ideally with local and preferably analog emergency systems.

"For instance, the U.S. Navy uses sound-powered telephones that require no electricity, and they have now become so advanced that they can be used over several kilometers. We need to think about backups that are not overly complicated – they need to be simple," he emphasized passionately.

Overall, the techno-critic is skeptical about the vulnerability of our digital society.

"We actually have a declared goal of digital sovereignty in Europe – I think it’s time for people to take this seriously, especially now that Trump has terminated the joint data agreement between the EU and the U.S.," warned Anders Kjærulff, who is also aware of the ethical issues within the data center industry.

If you want to avoid public shaming, ensure complete transparency regarding your energy and water consumption. We need the numbers on the table; otherwise, people will start protesting! And do you have policies or ethical guidelines in place if, for example, the government suddenly demands access to your data?" he posed as one of many difficult questions for the audience to ponder.

"Part of the problem is that much of the support is outsourced – perhaps to India – and for various reasons, you might suddenly find yourself in a situation where you cannot access it. That’s why it is extremely important that we in Denmark maintain local support competencies. Do you have local support?" Anders Kjærulff asked rhetorically.

He also recommended taking an interest in complex yet pressing issues such as data security.

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As mentioned, Anders Kjærulff primarily focuses on opportunities, and despite everything, he remains optimistic about the future.

"I believe things will work out – but not if we just continue to go with the flow. We need to start making demands and building better infrastructure with improved security in Denmark. Some of that infrastructure must be analog – we must have the ability to pull a big red lever and revert to what we previously had in analog form," he recommended. "I believe many of these changes are already underway – and I also believe it will be a good business opportunity for you."

Before Anders Kjærulff's presentation, the Danish Data Center Industry set the stage with a 'fireside chat,' where CEO Henrik Hansen highlighted the significant and rapid changes occurring.

"It’s a crazy, crazy world right now, and every single day, something happens that impacts our industry. A lot has changed for us as an association as well – now we’re being invited to everything because people have truly realized how important our industry is," said Henrik Hansen.

"That’s why we also need to carefully consider how we best interact with our surroundings. We have become a crucial part of almost everything that happens in modern society."

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MARKET & INVESTMENT TRENDS

INTERVIEW: JOAKIM PETERSEN

Powering the future: Investment trends and challenges in the Nordics WRITTEN BY

Christine Kjær Jacobsen & Joakim Petersen

What will drive future investments trends as the data center industry prepares for a surge in workloads, density and energy use? We asked Joakim Petersen 5 quick questions on future investment trends.

Picture: Joakim Petersen (left) joins the ribbon-cutting ceremony on a new data center site in Copenhagen.

The Danish Data Center market is expected to double within the next few years. From being a predominately hyperscale-based data center market, analysts are now expecting an increase in colocation workloads. This is changing market dynamics, as new investors and players are entering the market at a pivotal point.

Q: How do you see the Danish/Nordic (investment) market evolving in terms of technology, sustainability, and infrastructure?

Joakim: I see several trends and factors poised to influence investments in Denmark and the Nordics over the next 1-5 years.

Joakim: The investment landscape in the Danish and Nordic markets is evolving significantly, driven largely by the increasing demand for AI large language model (LLM) training workloads. This trend is propelled by the region's abundant power resources, characterized by a low CO2 footprint and comparatively favorable energy costs relative to other areas in EMEA. While extensive construction activity is still emerging, substantial land banking is taking place to prepare for future AI developments.

Notably, the retail and wholesale colocation sectors, along with cloud availability zones, are experiencing significant expansion across the Nordics, with ongoing developments in both major cities and tier-2 locations.

As workloads continue to grow, mainly due to the increasing demands of AI, the need for additional capacity is becoming critical. A significant trend in the Nordics is the heightened focus on AI, prompting a shift in industry priorities. Whereas previous considerations emphasized factors like power capacity, time to market, zoning, and buildability with respect to latency, the AI landscape requires a reevaluation of these metrics.

There is a stronger emphasis on power requirements, with data centers needing to accommodate up to gigawatts of power per campus.

As we anticipate heightened density and energy demands from these systems, the exploration of advanced cooling solutions—such as direct-to-chip and immersion cooling technologies—will likely become more prevalent. From an infrastructure perspective, the focus must extend beyond the data center itself to encompass how these facilities generate and source power. Key considerations involve whether energy is exclusively sourced from the grid or if there's a shift toward onsite generation methods. The potential development of nuclear energy, including microreactors and small modular reactors (SMRs), raises important questions about implementation strategies and their implications for competitiveness across countries, regions, and communities.

This shift leads to considerable operational expenditure (OPEX) related to power costs, making even slight savings per kilowatt-hour impactful for data providers.

Furthermore, advancements in connectivity, such as the introduction of hollow core fiber, could significantly influence data center location decisions, as this technology has the potential to extend the reach of availability zones and enhance performance across wide-area networks.

Q: What do you see as the key trends and factors that will drive data center investments in Denmark and the Nordics over the next 1-5 years?

Investors will carefully assess these classic external factors when deciding on new projects. Additionally, macroeconomic considerations, particularly government incentives for AI development - whether direct or indirect - will play a crucial role. The extent to which countries and communities support the growth of the industry and the establishment of data centers that facilitate AI operations will also influence investment decisions.

Short-term concerns include the availability of AI chipsets and the speed and scale of their deployment, both of which are critical for organizations aiming to leverage AI technologies.

Sustainability remains a core aspect of the Nordic value proposition, exemplified by our low CO2 energy grid and strong emphasis on optimizing the use of "waste" heat generated from data processing. Integrating this waste heat into existing district heating systems and circular industrial symbiosis initiatives is essential. An illustrative example is Denmark's Kalundborg Symbiosis, a model of resource sharing that has been operational since 1972. This commitment to sustainability is poised to evolve, delivering economic benefits while promoting responsible resource utilization in society.

And of course, how will Europe react in a new global geopolitical dynamic? With developing assets for cloud sovereignty and maybe an accelerated regional AI play?

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MARKET & INVESTMENT TRENDS

Q: Looking forward, what do you see as the primary risks associated with data center investments? How will we see companies mitigating these risks, particularly in terms of power and land availability?

Joakim: Power remains a critical determinant in data center investments, and this focus is unlikely to change in the foreseeable future. Investors are increasingly prioritizing securing substantial power resources, often quantified in three-digit megavolt-amperes (MVAs). In situations where off-grid power solutions are viable, a crucial consideration is the ease of implementation and the establishment of supportive public frameworks that ensure swift access to power. This can be effectively integrated with grid-based workloads, allowing seamless transitions to the grid when intermittent renewable sources, such as solar and wind, are unavailable.

Additionally, incorporating provisions for island-mode operations - utilizing gas turbines or other nonintermittent energy sources - can enhance resilience and potentially reduce overall energy costs. As a result, regions with diverse local and regional power generation facilities will be particularly attractive to investors.

On the matter of grid connections, which are a top priority for investors, there is a pressing need for assurance regarding security, uptime, and capacity.

The Nordics face competition from other European regions in terms of time to market, making proactive engagement from Transmission System Operators (TSOs) essential during the due diligence process.

On the land availability front, a smooth and transparent zoning regime is crucial. The maturity of land, ideally pre-zoned for industrial or data center use, is a significant consideration for investors. For sites lacking pre-zoning, investors will evaluate zoning frameworks and their potential pathways to secure the necessary approvals efficiently. Across various countries, regions, and municipalities, investors diligently analyze risks to minimize external influences that could jeopardize timelines before finalizing investment decisions.

In Denmark, we have demonstrated a strong capability in navigating the planning and zoning systems, which positively contributes to the investment climate.

Historically, our agility in these processes has positioned Denmark favorably in the competitive data center investment landscape.

Q: Access to powered land has become a vital factor for data center expansion and investment. In your experience, how are companies navigating the challenges of land acquisition, and what strategies are being employed to secure land and prime locations?

Joakim: Access to powered land is indeed critical for data center growth, with various factors influencing different market segments. For instance, retail data centers in capital regions may not require hundreds of megawatts (MWs) but still need adequately zoned land with accessible power, typically in the range of 20 MW+. However, securing such land and immediate power in cities like Oslo or Stockholm can pose significant challenges.

Currently, we see considerable land banking activities in suburban and rural areas of the Nordics, particularly for AI and cloud applications. Companies engage in land banking to ensure they can navigate the zoning and permitting processes successfully while securing reliable power ramp-up agreements with grid operators. Power Purchase Agreements (PPAs) aligned with corporate sustainability goals and cost management, along with agreements for utilizing residual heat in district heating systems or with neighboring industries, are also essential components of this strategy.

It is vital to recognize that land suitable for data center development often commands a premium price compared to its current usage as farmland or for other industrial purposes. Consequently, clients typically seek demonstrable proof of potential future data center use before finalizing transactions. To mitigate risks during this process, many companies prefer to secure exclusive options on powered land, which allows them to meet all necessary criteria and ensures they can effectively plan their construction and operational rollout.

Additionally, certain investor types, such as colocation providers, often require the securing of one or two anchor lease tenants before making final investment decisions. However, as we have observed in the Nordics, it is crucial to temper expectations regarding the short-term development of all land acquisitions.

The industry operates under its own dynamics, and not every land deal will translate into immediate project construction.

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Q: What are you most excited about in terms of new developments, technologies, or projects on the market in 2025-2026?

Joakim: I am genuinely excited about the advancements in the digital infrastructure sector, especially as they underpin global digital innovation, global growth, and address some of humanity's most pressing challenges, such as improving healthcare processes and enhancing medical research.

A prime example is the Gefion AI project, initiated by the Novo Nordisk Foundation in Copenhagen, which underscores the Nordic region's commitment to developing a robust ecosystem around data centers and artificial intelligence.

Furthermore, Nordic companies are actively driving initiatives to enhance efficiency within data centers and foster circular ecosystems that positively integrate these facilities with their surrounding environments.

A noteworthy example is the Net Zero Innovation Hub, co-initiated by Danfoss, which focuses on sustainable practices. Additionally, major engineering and consulting firms like Rambøll and COWI are taking an active role in designing the next generation of data centers, contributing to a more sustainable and efficient future.

About Joakim Petersen Joakim brings over 13 years of experience in the data center industry, collaborating with leading international investors primarily in the Nordic countries and the EMEA region. His expertise includes serving as a consultant and site selection manager for noteworthy projects involving hyperscalers, colocation providers, and equity/infrastructure funds.

In his previous role at a prominent European architecture, engineering, and construction (AEC) firm, he excelled as the Global Commercial Lead for Data Centers, where he managed a portfolio of key accounts, including several of the largest tech companies in the industry.

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MARKET & INVESTMENT TRENDS

DDI ECOSYSTEM GUIDE A comprehensive overview of the Danish Data Center Ecosystem highlighting more than 120 companies The DDI ecosystem guide provides an overview that will help organisations make informed decisions, whether you are looking to invest, build, operate, or expand your services on the Danish data center market.

The Danish data center industry is a fast-growing sector in Denmark with a rich and thriving ecosystem of high-quality suppliers.

These include: Suppliers who assist data center operators in the initial financing, planning, designing and construction phase.

Suppliers delivering infrastructure and architecture products and services (power, cooling, cabling, connectivity) to assist with the setup of the data center.

And when the data center is fully operational, suppliers that assist data centers in running their facility, from maintenance and cleaning services to legal and security services.

Download DDI Ecosystem guide here:

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INNOVATION & PARTNERSHIPS

SPOTLIGHT: NOVENCO

From small Danish manufacturer to leading data center supplier WRITTEN BY

Christine Kjær Jacobsen

Since their first contract for Meta in Luleå, Sweden in 2013, NOVENCO Building & Industry has been on a growth journey. John Jørgensen, Director of Global Data Center Sales, shares some perspectives on NOVENCO’s growth journey and what the data center contracts have meant for their business.

While NOVENCO’s data center journey started with Meta in 2013, the true breakthrough happened five years later. In 2019, NOVENCO announced that they had been awarded a major contract by Meta to supply advanced cooling solutions for two new 175 MW data center sites in the United States.

It took five years to be approved as a strategic partner

by Meta for US-based data center projects, but today, NOVENCO is still the only non-American manufacturer to supply cooling solutions to Meta’s data centers in the United States.

After continued growth since 2019, NOVENCO has invested in new production facilities and moved to a new domicile in December 2023. John Jørgensen summarizes: “Data Center business has grown strongly, and we have therefore invested in a new factory with a dedicated production flow line that has enabled us to increase efficiency, thereby optimizing costs and ensuring on-time delivery with zero defects.”

Sustainability and energy efficiency are of the essence Sometimes, you are in the right place at the right time.

Or, in NOVENCO’s case, you have the right product in a time with massive investments and growth in the data center industry.

Significant growth and increased market share While it is difficult to be approved as a supplier to the major data center hyperscalers, it can make a significant difference for the business. Since 2019, NOVENCO has delivered data center cooling solutions to hyperscalers with a collective capacity of appr.

1.6GW, thereby gaining a significant market share. In 2024, data center projects accounted for appr. 50% of NOVENCO’s annual turnover.

“For a company of our size, compared to our much larger competitors, this is a major success story,” Jørgensen concludes.

Latest news and future perspectives NOVENCO has recently been awarded a major contract by a large hyperscaler in the USA to supply a newly developed cooling solution that combines their ZerAx® based Fan Array with a chilled water coil designed specifically for AI data centers.

Due to the introduction of highly advanced GPUs in servers for AI applications, the heat load per m3 in data center buildings has increased dramatically, which requires direct cooling on these +200kW server racks.

NOVENCO tells us this AI data center site is a “multibillion $” investment and will be one of the largest in the world when it becomes operational in a few years.

Jørgensen tells us that NOVENCO’s patented ZerAx® axial flow fans are the most energy efficient on the world market. This, combined with a high recyclability rate (98%), helps ensure the product has a low carbon footprint.

Energy efficiency is essential for the data center industry, and recent legislation has underscored the importance of minimizing energy usage in data centers.

In addition, TCO is an important factor. The technology utilized in NOVENCO’s ZerAx® ventilators ensures that they can run for 20+ years without service and maintenance. This is important not just in terms of scope 3 emissions for NOVENCO’s customers, but also in ensuring zero downtime.

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Accelerating the European Data Center Industry towards a net zero future The Net Zero Innovation Hub for Data Centers is a pan-European initiative which seeks to address key sectoral challenges in concrete innovation projects and establish stronger links between operators, suppliers, and governments - acting as a gateway for innovation and partnerships in Europe.

Executive members

Hub Project Partners

Research Partners

www.netzerodatacenters.com info@netzerodatacenters.com

SPOTLIGHT: DIGITAL REALTY

Digital Realty's AI-Ready data center hosts Denmark's Supercomputer WRITTEN BY

Christine Kjær Jacobsen

In this member spotlight, Pernille Hoffmann, Managing Director, Nordics, at Digital Realty, gives her perspectives on Denmark’s first supercomputer and the data center industry in Denmark.

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INNOVATION & PARTNERSHIPS

The Novo Nordisk Foundation and EIFO have brought one of the world’s most powerful supercomputers to Denmark, and in 2024, the Danish Centre for AI innovation (DCAI) was established to operate the supercomputer.

The supercomputer was officially inaugurated in October 2024 by NVIDIA CEO Jensen Huang, his Majesty King Frederik X of Denmark, and DCAI CEO Nadia Carlsten.

Popularly known as ‘Gefion’, the supercomputer is hosted by Digital Realty in one of its AI-ready data centers in Denmark. In Norse mythology, Gefion is known as the goddess for agriculture, fertility, abundance, and prosperity, and is often translated as “the generous one.”

Gefion is made up of 191 DGX H100 systems with a total of 1,528 NVIDIA H100 Tensor Core GPUs and 382 Intel Xeon Platinum CPUs connected by Quantum 2 InfiniBand.

I believe Denmark and the Nordics have the prerequisites to become an AI hub in the coming years. We have solid infrastructure, a highly robust ecosystem, and favorable conditions for sustainability. In my opinion, as a country we are ready for this.

Denmark’s solid infrastructure and robust ecosystem enables innovation.

The Gefion project has come to life in a public-private partnership between Novo Nordisk Foundation, EIFO, NVIDIA, Eviden, and Digital Realty. The Danish Centre for AI Innovation, which is supported by Novo Nordisk Foundation and EIFO, owns and operates the supercomputer. Any generated revenue will be reinvested in the initiative.

“I believe Denmark and the Nordics have the prerequisites to become an AI hub in the coming years.

We have solid infrastructure, a highly robust ecosystem, and favorable conditions for sustainability.

In my opinion, as a country we are ready for this,” Pernille comments.

The project allows both public and private sectors to access the computer to complete research. Incoming research projects will be evaluated on several parameters, including ethics.

In October 2024 it was announced that a project from the Danish meteorological institute would be the first to run on the system, but researchers from the University of Copenhagen, Technical University of Denmark (DTU); Go Autonomous, a startup in the transportation field; and Teton, a healthcare startup; are also among the six winning proposals running as a part of Gefion’s pilot phase.

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Why Digital Realty? Operational Excellence, confidentiality and discretion at the core According to Pernille, three key factors influenced the decision to choose Digital Realty as the host for the supercomputer. First and foremost, the need for an AIready data center. Additionally, a strong focus on sustainability and operational excellence played a crucial role. Pernille explains: “Sustainability has been a central theme throughout the entire process.”

In an industry where confidentiality, security, and discretion are critical, these factors were also essential in the decision-making process.

“Security and confidentiality are top priorities for our customers. Hosting this supercomputer follows the same setup as any other customer —no special arrangements are needed, as they seamlessly integrate into our existing operations. This is possible because we already meet all necessary requirements.”

Pernille concludes, "In my opinion, the Danish Centre for AI Innovation will have a enormous impact on AI development in the coming years, and I’m excited to follow the project closely."

From an operational standpoint, hosting the supercomputer is no different from serving any other customer. Digital Realty provides hosting under standard colocation conditions, with minimal adjustments required.

About Digital Realty Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx™) solution methodology for powering innovation and efficiently managing Data Gravity challenges.

Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 310+ facilities in 50+ metros across 25+ countries on six continents.

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INNOVATION & PARTNERSHIPS

INTERVIEW:ALBERTO RAVAGNI

Innovative partnerships drive sustainability at scale in data centers WRITTEN BY

Christine Kjær Jacobsen

Alberto Ravagni discusses the biggest challenges data centers face in the twin transition, the importance of partnerships, and how to drive innovation at scale.

Innovating at Scale - Challenges and Solutions The urgency for achieving Net Zero and transforming the global energy system to meet the 1.5°C goal has never been more critical. Although 2023 was a landmark year for the energy sector, with the share of renewables rising to 14.6%, and, combined with nuclear, accounting for over 18% of total primary energy consumption, 2023 also saw record consumption of fossil fuels, highlighting the significant challenges that remain. Meanwhile, 2024 marked the hottest year on record.

In this context, Alberto Ravagni discusses the biggest challenges data centers face in becoming more sustainable, and the innovative solutions being developed to address these issues.

Q: What are the biggest challenges data centers face in becoming more sustainable?

Alberto: One of the biggest challenges data centers face in becoming more sustainable is fulfilling the simultaneous requirements of exponential growth and decarbonization.

Data centers require high energy consumption to power and cool the vast amounts of computing equipment (Scope 1 and 2 emissions). This is compounded by the need for reliable, 24/7 power, which can be difficult to source entirely from low carbon energy. Additionally, the environmental impact of scope 3 emissions: materials and electronic waste and the need for efficient water usage in cooling systems are significant hurdles, deonding on the data center location.

Balancing the growing demand for data processing with the imperative to reduce carbon footprints is a complex task.

Addressing Scope 3 emissions is another major challenge. Data centers must work closely with suppliers to ensure that materials and components are sourced sustainably and that the entire value chain is optimized for minimal environmental impact. This involves rigorous reporting and management of emissions from construction, operations, and end-of-life disposal of equipment.

Finally, ensuring reliable backup power while maintaining sustainability is crucial. Data centers are increasingly exploring cleaner alternatives such as battery storage systems and renewable energy sources for backup power such as hydrogen and clean fuels.

These solutions help maintain continuous operations progressing simultaneously towards sustainability goals.

Q: What are some of the most significant innovations in data center technology that are helping to achieve sustainability at scale? (Can you provide examples?)

Alberto: Several innovations are making a substantial impact on data center sustainability. For instance, liquid and immersion cooling technology, where servers heat is removed by dielectric fluids, significantly improve cooling efficiency, reduces energy consumption and enable heat reuse. Another example is the use of software-defined data centers, AI supported optimization and infrastructure virtualization, leading to optimized resource utilization and reduced energy waste. Additionally, hyperscale architecture allows for more efficient scaling of data center operations, further enhancing sustainability.

How is the Net Zero Innovation Hub addressing these challenges through innovation and partnerships?

Alberto: The Net Zero Innovation Hub is at the forefront of addressing these sustainability challenges through a combination of innovation and strategic partnerships. We are fostering collaboration between data center operators, suppliers and innovators to accelerate the development and deployment of sustainable technologies. Innovative technologies must be de-risked before they can be scaled. Our initiatives include pilot projects for clean backup power solutions, heat reuse systems, and the interaction of data centers with the electric grid. By creating a platform for knowledge sharing and public engagement, we aim to drive the industry towards a net-zero future.

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INNOVATION & PARTNERSHIPS

Role of Partnerships In an increasingly complex world, it is becoming increasingly clear that a new approach to colllaboration is needed. The Net Zero Innovation Hub is just one example of cross-sector partnerships driving the industry forward.

Q: How crucial are partnerships in driving the data center industry towards net-zero goals?

Alberto: Partnerships are absolutely vital in driving the data center industry towards net-zero goals. The complexity and scale of the challenges we face in achieving sustainability require a collaborative approach. By working together, data center operators, technology providers, and energy companies can pool their resources, expertise, and innovations to develop and implement effective solutions. These partnerships enable us to leverage diverse perspectives and capabilities, accelerating our progress towards a sustainable future.

Q: Can you share some successful examples of collaborations that have made a significant impact on sustainability?

Alberto: One notable example is the collaboration between EcoDataCenter and CoreWeave.

EcoDataCenter, a Swedish company, has been building eco-friendly data centers that use renewable energy and innovative cooling technologies. Their partnership with CoreWeave, a major AI compute provider, has led to the development of sustainable data centers that significantly reduce carbon emissions Another example is the partnership between LuxConnect and various green energy providers, which has enabled LuxConnect to offer carbon-neutral data center facilities powered entirely by certified hydroelectricity. These collaborations demonstrate the power of partnerships in driving meaningful progress towards sustainability in the data center industry.

I also look forward to seeing the impact of collaborations such as the one between WA3RM and atNorth. This partnership is poised to transform heat recycling at the new atNorth site in Denmark, enabling large-scale greenhouse operations and community heating solutions.

Future outlook As the data center industry continues to evolve, sustainability and innovation is becoming increasingly critical. Staying ahead of emerging trends in a rapidly changing landscape is crucial. We asked Alberto Ravagni to share his perspectives on the industry's future, focusing on the exciting developments in sustainability and innovation.

Looking ahead, what trends do you foresee in the data center industry regarding sustainability and innovation? How do you see these trends shaping the future of data centers?

Alberto: In the coming years, I foresee several key trends driving sustainability and innovation in the data center industry.

First, the integration of renewable energy sources will become even more prevalent, with data centers increasingly relying on solar, wind, and hydroelectric power to reduce their carbon footprints. Data centers will become more integrated in the future energy systems providing grid services and supporting local communities. Additionally, advancements in cooling technologies, such as liquid cooling and immersion cooling, will significantly enhance energy efficiency.

The adoption of AI and machine learning for optimizing data center operations will also play a crucial role in improving sustainability.

Edge computing will play a pivotal role in the future of data centers by bringing data processing closer to the source of data generation. This approach significantly reduces latency, enhances real-time data processing, and optimizes bandwidth usage. As the demand for low-latency applications like IoT, autonomous vehicles, and smart cities grows, edge computing will become increasingly essential. It complements traditional centralized data centers by offloading some of the processing tasks, thereby improving overall efficiency and resilience. This decentralized model will enable data centers to better handle the exponential growth in data and support the next generation of digital infrastructure.

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Q: What are you most excited about in terms of new developments, technologies or projects on the market in 2025-2026?

Alberto: I am particularly excited about the current advancements in AI infrastructure and the future implementation of quantum computing at scale. These technologies have the potential to revolutionize data processing and analytics, enabling us to tackle complex problems more efficiently.

Additionally, the development of hybrid cooling solutions that combine various liquid cooling methods with traditional air-cooling systems is a significant step forward in enhancing data center efficiency. I am also enthusiastic about the increasing collaboration between data center operators and clean tech industries, which will drive innovative solutions for sustainability. These developments will not only improve the performance and sustainability of data centers but also contribute to a more sustainable and technologically advanced future.

About Alberto Ravagni and the Net Zero Innovation Hub Alberto Ravagni is the CEO of the Net Zero Innovation Hub for Data Centers.

Alberto Ravagni brings over 20 years of experience in the energy industry and is a clean energy architect and industry expert in clean energy, energy storage, and fuel cell technologies.

He was the co-founder and Managing Director of InfraPrime℠, a climate neutral data center infrastructure company. Previously, he was the founder and CEO of SOLIDPower, a market leading fuel cells company, which commercialized fuel cells generators in megawatt scale for residential, SME, and data center clients including the Microsoft Fuel Cell Energy Lab in Seattle, Washington, USA. Ravagni was a member of the first board of the Joint Technology Initiative for Hydrogen and Fuel Cells of the European Commission, a public-private partnership which manages a €1 billion innovation program to drive the transition to zero carbon energy systems. Ravagni is a proven entrepreneur who has held global executive management positions.

The Net Zero Innovation Hub is an industry consortium launched in September 2023 by Data4, Danfoss, Google, Microsoft, Schneider Electric and Vertiv, to accelerate European data centers towards a net zero future.

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INNOVATION & PARTNERSHIPS

Danfoss leads the way with climate friendly data center WRITTEN BY

Kurt Henriksen

The view was absolutely flawless when Danfoss hosted a member meeting for Danish Data Center Industry. From the 11th floor of the company's impressive headquarters in Nordborg on Als, there was a remarkable view of both the large campus and a series of concrete proposals throughout the day for the climatefriendly datacenter of the future.

"Almost everything you can see from here belongs to Danfoss — though not the church over there, but the founder of Danfoss is buried there. In fact, he’s buried with his face turned towards Danfoss, so he can keep an eye on the company," shared the day's host, Director Jakob Jul Jensen, Data Center Business Development at Danfoss, in his welcome speech.

The networking event included a review of Danfoss' digital transformation and a visit to the company's datacenter, both of which align well with the current trends in the industry, where several interesting developments are unfolding.

"AI is taking up a lot of our attention right now, and we're in close dialogue with Energinet and the Danish Energy Agency, as there are several issues to address," said Henrik Hansen, Director of the Datacenter Industry, in a status update.

"A lot is happening right now — including the availability of capacity in the power grid versus actual needs.

There's much to manage here so all stakeholders are ready for the large-scale AI rollout."

For Danfoss, the goal is to become the preferred partner in reducing customers' carbon footprints. This is a priority for the giant corporation, founded in 1933 in Nordborg, which now operates over 100 production sites in more than 100 countries and employs over 41,000 people.

"Green transformation is our business, and we believe Danfoss is a key to the solution — also when it comes to datacenters. We aim to be number 1 or 2 in all our

business areas; otherwise, we believe it’s better not to participate," said Kasper Sckerl, Vice President, Head of IT Operations & Platforms at Danfoss.

The climate agenda has also literally moved close to Danfoss' own datacenter in Nordborg. The location was assessed to be at risk of flooding during cloudbursts, so in February 2019, they broke ground on a new climatefriendly datacenter. Or rather, two centers, to ensure operational security, building an identical 2nd Node center 40 kilometers away.

"Everything is redundantly connected in a 'Zero Outage Design.' Over the past 12 months, we haven't had a single second of downtime," stated Kasper Sckerl, whose team also seized the opportunity of the new construction to implement several green initiatives.

"For us, it's important to take our own medicine, and we have a three-step strategy to become completely carbon neutral — reduce, reuse, and replace. The campus you're in now is already carbon neutral, and in the datacenter, we use machine learning to minimize power loss in energy transformation and employ Danfoss' oil-free cooling compressor, which is 50% more efficient than traditional ones," he explained.

Utilizing surplus heat is also an integrated part of the new datacenters, which are expected this year to provide 25% of the entire heating demand for the large Nordborg campus. The expectation was for a slightly higher share, but with precise liquid-based spot cooling, the datacenter has proven more energy-efficient than expected, generating less surplus heat.

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After the presentations, the networking meeting participants enjoyed a site visit in the brilliant latesummer weather. The datacenter is built in a container design behind a fence but without an actual building around the containers. This decision weighed the security benefit of a closed building against the flexibility of easy and quick redesign in the future by simply swapping out one or more containers.

The design is also modular, with 250 MW capacity in one container from the start, expanded to 500 KW in Phase 2 in 2022. Phases 3 and 4 are prepared for a total capacity of 750 MW and 1 GW, respectively, while Danfoss, as mentioned, runs an identical setup at a second location 40 kilometers away.

In a building next to the datacenter, heat exchangers and heat pumps are used to recover the 24°C cooling water's excess heat. This water is cooled to 19°C before being returned, and chillers are installed as backup cooling at the datacenter.

The heat pumps raise the water temperature to 63°C, making it suitable for heating. The system can connect to the public district heating network, but it currently operates in a closed loop with Danfoss' local campus district heating system, which can easily absorb the heat.

On the green side, Danfoss has also invested in a stake in the Horns Rev offshore wind farms, and the company has its own 2 MW solar park right next to the Nordborg campus. Plans are underway to establish a battery storage system to store power and smooth fluctuations.

Back inside, another Danfoss director, in his role as chairman of the Net Zero Innovation Hub, discussed the progress of this newly established pan-European organization.

"We want to innovate collaboratively — we can't do it alone, which is why we’re a hub aiming to make a difference through partnerships," said Chairman Dietmar Baro, Vice President, Systems & Technology, Danfoss.

"It might seem strange that we have competitors like Google and Microsoft as founders and work with companies like Apple. But they don’t see each other as competitors in this context," he emphasized.

"We are looking for new ideas in collaboration with industry, universities, and others to bring together various competencies and cover all areas. We also aim to engage governments and other institutions to build a blueprint that can be used elsewhere, and we're exploring various funding options," Dietmar Baro shared.

Initially, the Net Zero Innovation Hub focuses on three initiatives: excess heat utilization, carbon-free energy for datacenters — including in backup power — and reducing CO2 in building materials.

"We started with these three projects because we’ve been a small team from the outset. We have tons of ideas, but we also want to achieve something. I’m married and have kids, and if I try to please everyone, nothing will get done — and they’ll all be unhappy," Dietmar Baro joked.

He assured that many different ideas and possibilities are being explored in the longer term and praised the industry players for numerous inquiries with input and suggestions.

The final item of the day was a panel debate with a single but highly complex question for the industry: Are we ready for AI? "From the co-lo side, we're ready — and not ready," said Sales Director Anders Hansen from Stack Infrastructure, referring to the need for much higher energy density.

“The density per square meter isn't even close to what AI requires today — even in datacenters only a few years old. If we want to use power, we must also move the heat. We thought servers could handle more and more heat, but they can’t. Let’s see what AI actually brings — but as a co-lo operator, we’re challenged by AI in the short term," asserted Anders Hansen.

Regional Business Lead Denmark Rasmus Bisgaard from NVIDIA pointed out that Denmark generally isn’t at the forefront of AI investments. On the contrary, we’re losing ground compared to other Nordic countries, and the Dell representative on the panel shared the same concern.

"We're lightyears behind and have been for the past two or three years. We could have closed the gap with Asia, but we didn’t, because we don’t have the capacity for sustainable AI growth in Denmark," assessed Senior Server Specialist Thue Stahl from Dell.

"There is a need for infrastructure within the country's borders to protect IP rights — that’s the impression I get from the customers I work with daily. Customers are skeptical and cautious."

The security issue was echoed by Stack: "Many large companies want to use AI, but they're reluctant to use the public cloud. When you see security breaches on a daily basis, you want to use it in an environment you control. We receive many price inquiries and so on, but the big boom hasn’t come yet, as electricity is required.

Few sites can provide what’s needed — that’s also an issue here," said Anders Hansen.

From Schneider, there was a reminder that only a few customers are truly engaged in AI — and few understand the actual need.

"There’s talk of AI as one entity, but AI encompasses many things. And good luck designing something for an AI need you don’t actually know," said Country Sales Director Søren Schrøder from the Secure Power Division at Schneider Electric. "When Rasmus from NVIDIA says they’re three months delayed with a project, it only affects three customers. It’s not 100 customers, as very few actors are still leading the way in AI development."

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THEME: NORDICS & POWER

INTERVIEW: ISABELLE KEMLIN

From AI to Quantum: The Next Decade of Nordic Data Centers WRITTEN BY

Christine Kjær Jacobsen

We had the opportunity to talk to Isabelle Kemlin about the key trends driving growth in the Nordics, as well as the importance of grid integration and energy efficiency.

Future Trends The Nordic region is continuing to rise as an emerging market for data center growth, with acceleration poised to continue through 2030. This growth is driven by a unique combination of technological innovation, sustainability initiatives, and strategic investments.

In a rapidly changing industry, long-term predictions are scarce. Isabelle anticipates the Nordic region will become a key hub for technological advancements and sustainable development, driven by close collaboration, innovative cooling technologies, and strategic partnerships in the data centre industry.

Q: What do you see as the key trends and factors driving data centre growth in the Nordic region over the next 1-5 years?

Q: Looking forward, what are some of the key trends and innovations you anticipate will shape the data centre industry in the Nordics over the next 5-10 years?

Isabelle: The growing demand for high-density computing, driven by AI, will further solidify the Nordics as a prime location for data centre development. The region remains highly cost-effective for investments, thanks to its abundant renewable energy supply, high levels of innovation, extensive 5G deployment, and favourable climate.

Additionally, the availability of applications to repurpose excess heat and a well-established electricity market and grid for ancillary services - such as balancing, peak-shaving, and the ability to generate electricity back to the grid - further supports the growth in the Nordics.

Isabelle: Due to the close collaboration within the Nordics, we will see a more efficient and integrated electricity market, with data centres playing a vital role in the circular economy. Innovations in cooling technologies, such as liquid cooling and immersion cooling, especially single-phase and two-phase immersion cooling, will be increasingly adopted. We will see onsite generation of electricity, as well as strategic partnerships with electricity providers and the clean tech industry.

We will also most likely also see quantum computing at scale. These trends and innovations will collectively drive the growth and transformation of the data centre industry in the Nordics, establishing the region as a key hub for technological advancements and sustainable development.

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THEME: NORDICS & POWER

Nordic Sustainability Initiatives The Nordic region's commitment to sustainability is evident in its approach to data center development.

Renewable energy sources and advanced cooling technologies are integral to the region's data centers, highlighting their role in reducing energy consumption and supporting the electricity grid.

Q: The Nordics are known for their focus on sustainability. Can you discuss the role of sustainability and renewable energy in the development of data centers in the Nordic countries?

Isabelle: Sustainability is somewhat part of the DNA of the people living in the Nordics. This influence the way we work as well as the fact that sustainability is a high priority in our daily lives, as well as in our work.

From a datacentre perspective, most of the data centers in the Nordics are already powered by renewable energy sources such as hydro, wind and solar.

From a heat reuse perspective, we have, in comparison to other parts of Europe, many district heating networks, being one way of re-utilize the heat. We also have leading research within sustainable data centres, testing and implementing new ways of reusing the heat as well as testing new advanced cooling technologies, which will decrease the energy consumption and is a necessity for future high-dense compute. In addition, we do have already a working energy supply market, where the data centres can support, balance and help peak-shaving the electricity grid, which is something that many operators in other regions discuss but few can effectively implement.

The Nordic data centre industry is at the forefront of leveraging renewable energy and green technologies to minimize its carbon footprint. The region's extensive experience in heat reuse and ongoing innovations are driving sustainability, alongside close collaborations with other Nordic industry sectors.

The Nordic data center industry is at the forefront of leveraging renewable energy and green technologies to minimize its carbon footprint. The region's extensive experience in heat reuse and ongoing innovations are driving sustainability, alongside close collaborations with other Nordic industries.

Q: In your experience, how are data centers in the region leveraging renewable energy sources and other green technologies to reduce their carbon footprint?

Isabelle: In the Nordics, the data centre industry is already a front-runner, eager to lead the development of new sustainable technologies. We have been reusing heat for over 15 years and continue to innovate in this area. Drawing on our extensive experience, we are exploring new ways to build data centres and are actively participating in cross-border sustainability research initiatives.

Additionally, we are collaborating closely with other leading Nordic industries, such as clean tech, to further leverage the strengths of our region.

With our region's potential for sustainability, leading research, and a collaborative mindset, we can significantly improve energy efficiency and reduce costs globally. By working together, we can make a substantial impact on sustainability worldwide.

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Q: What are you most excited about in terms of new developments, technologies or investments in the market in 2025-2026?

The increase in compute density is driving a surge in power demand for rack solutions, reaching levels we could only dream of a year ago.

Isabelle: There are several exciting developments happening. Our industry is evolving rapidly, now resembling the pace of the consumer market.

From an investment perspective, the valuation of operators with hyperscale customers will skyrocket, and traditional ways of investing will change, looking more into how the data centres fit into a larger ecosystem, creating new forms of partnerships.

From a technology perspective, the build-out of AI infrastructure is advancing rapidly. We are witnessing operators decommissioning almost new equipment to install the latest technology. Hybrid solutions, combining various liquid cooling methods with air cooling systems, are being implemented to enhance efficiency.

Personally, I am most excited about the collective change we are driving. With our region's potential for sustainability, leading research, and a collaborative mindset, we can significantly improve energy efficiency and reduce costs globally. By working together, we can make a substantial impact on sustainability worldwide.

About Isabelle Kemlin Isabelle works at ICE Datacenter at Research Institutes of Sweden - a leading testbed and innovation center focusing on digitalization and IT infrastructure. Founded in 2016, the stately owned, neutral platform hosted over 100 projects. Some of the collaborators and partners are Meta, Vertiv, Ericsson, Vattenfall, BP Castrol, Alfa Laval, ABB and Intel who benefit from our in-depth competence and facility to test their latest innovations in practice.

She is also Vice Chair of the board of the Swedish Datacenter Industry and board member of European Data Centre Association (EUDCA). www.linkedin.com/in/isabellekemlin

THEME: NORDICS & POWER

atNorth CEO: Market dynamics are changing in the data center business WRITTEN BY

Christine Kjær Jacobsen

We had the opportunity to talk to atNorth CEO Eyjólfur Magnús Kristinsson about atNorth’s newest data center project (DEN02), but also about his perspectives on the Danish and regional market and future outlooks for AI and HPC workloads.

atNorth recently announced their newest data center project to date: a heat reuse enabled mega data center in Denmark. With an initial capacity of 250MW, the site will have the ability to scale up to several hundred megawatts, implementing heat reuse to heat largescale greenhouses, local housing and opportunities for sustainable power production.

Although the site will not be ready for a few years, the scale of the project puts atNorth in a position where it is set to be one of the largest data center providers in Denmark within a few years.

DEN02 is atNorth’s second data center in Denmark.

The first site, DEN01, which is located near Ballerup, will have a 30MW capacity and is due to open in April 2025.

DEN02 - from project to implementation DEN02 will cater to colocation and build-to-suit projects and will be specifically designed for data-intensive businesses such as hyper scalers and companies running AI and High-Performance Computing workloads.

“In our mind it's a blueprint of how our future data centers will look, meaning that it’s a symbiosis project.

And of course, the building itself will benefit from the green electricity grids in Denmark,” Magnus explains.

While a lot is still subject to the municipal process, the hope is to start construction of DEN02 no later than Q1 2026. When it starts, the goal is for the project to be a benefit to the local community; “We have a policy that we will leave as many jobs as possible within the local community or create as many jobs as possible. This means that we will, where possible, prefer to use local contractors and local people for construction and for operation.”

In our mind it's a blueprint of how our future data centers will look, meaning that it’s a symbiosis project. And of course, the building itself will benefit from the green electricity grids in Denmark.

The recent construction of an atNorth datacenter in Iceland is a prime example of this policy. In an area with relatively few inhabitants, 93% of the workforce that was used on the construction came from the local community.

As for DEN02, the goal is for the data center and adjacent industries to bring in local jobs: “The data center itself will of course bring in a lot of jobs, but the greenhouse project will bring further jobs in terms of the jobs related to the data center.”

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THEME: NORDICS & POWER

Construction of the greenhouses will not take place until well after construction on the data center has started, but Magnus adds: “The idea is that they will be ready to utilize the extra heat as soon as the data center is live.”

Heat reuse has great potential – but also challenges When it comes to heat reuse, Magnus explains: “All our new projects are set for heat reuse.

Unfortunately, we will be building DEN02 in an area with relatively few inhabitants, so local district heating will only benefit a couple thousand homes.

Therefore, we have partnered with WARM who will build a greenhouse on basically the same plot, and they will benefit from the excess heat. There will also be space for other heat off-takers, and we are already starting to investigate which companies that might be.”

There are, however, also challenges when it comes to heat reuse. As previously addressed by DDI, companies are facing challenges and roadblocks via regulation, in Denmark specifically via the price cap on excess heat.

When asked about the challenges atNorth faces regarding heat reuse, the message is clear: “Not related to this specific project, but we are facing a lot of challenges when it comes to heat reuse, especially on the regulatory side. The regulators need to step in and make this an easier process.”

Denmark - a future hub for AI workloads While atNorth has built data centers in Iceland, Finland and Sweden, they have chosen Denmark as the location for their biggest data center yet. And while atNorth sees Denmark as a great option for future HPC workloads, Magnus does have some advice for the Danish market: “For some reason, Denmark is not as well-known as a data center location. Most of the hyper scalers have done self-built projects in Denmark, but as a colocation destination, Denmark is not that well-known. I do not fully understand the reason for that. I think that a lot of potential customers and industry players are not aware of how green the electricity grid is in Denmark.”

The main drivers behind atNorth choosing Denmark include access to renewable energy, being able to fulfill requirements in terms of heat reuse, and access to powered land.

“There are many advantages to Denmark, for example proximity to central Europe, access to power and renewable energy, and potential for heat reuse projects.”

Magnus adds: “that is something very few are aware of, but our projects will benefit from that. And especially in Jutland, the grid is very green with very high renewability on the grids.” “atNorth is focusing highly on high density workloads traditionally known as HPC (high performance computing). In terms of AI, we are currently in the era of machine learning, and that era will eventually transition to inference. It is our strong belief that Denmark will be a great option as a location.”

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AI workloads are changing the game What is the future for AI and HPC workloads in a world where demands for data center capacity are on the rise? And will the Nordics be able to keep up as a competitive region? Magnus tells us:

There are many advantages to Denmark, for example proximity to central Europe, access to power and renewable energy, and potential for heat reuse projects.

“Market dynamics are changing in the data center business and that is very interesting. The market has been dominated by hyperscalers. Due to AI, the market is changing, and this obviously changes how things are done to an extent.”

As for future outlooks in terms of living up to the demands for capacity? Magnus concludes: “We must live up to the growing demands, otherwise someone else will. I feel that Europe is falling a bit behind, especially on the AI front, because we can’t cater to the demand, and Europe simply needs to step up their game and take part in this revolution”.

THEME: NORDICS & POWER

Nordic relationships solidified at Nordic Board meeting WRITTEN BY

Christine Kjær Jacobsen

The Nordic data center associations and their respective boards gathered in Stockholm for the annual Nordic board meeting and hosted the first Nordic AI Infrastructure Forum. These events provided the platform to discuss the future of the Nordic data center industry, to collaborate with Nordic partners, and to highlight the crucial role of data centers in powering AI innovation.

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Nordic Board Meeting: A common Nordic voice Representatives from the boards in Sweden, Denmark, Norway, Iceland, and Finland were gathered for the second time to formalize and dedicate their focus on future collaboration. Spanning across two days, the Nordic board meeting discussed strategies for future cooperation, marketing initiatives, and activities for 2025.

A key topic of discussion was increasing energy consumption and electricity requirements within the data center industry. With global electricity demands for data centers projected to double in the coming years, maintaining the Nordic power advantage and ensuring sufficient investments in the grid will be essential in coming years.

In addition to discussions on power, one of the key discussions centered on how to continue the work of creating a shared branding platform for the Nordics.

The Nordics continue to share a strong value proposition for data centers when it comes to energy, infrastructure, and climate – political and weather.

Last year, the Nordic associations successfully set out specific goals to continue working on implementation of the EED (link), to participate in Data Cloud Global Congress (link), to launch the first Nordic Data Center Week (link), and to launch a Nordic AI infrastructure event (link).

A newly established steering group and dedicated working groups will now continue and scale the activities plan for 2025.

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THEME: NORDICS & POWER

Nordic AI Infrastructure Forum: A Deep Dive into AI and Data Centers WRITTEN BY

Christine Kjær Jacobsen

The inaugural Nordic AI Infrastructure Forum gathered leaders within AI to discuss how the Nordic region can cooperate on building sustainable infrastructure to support AI technologies. The Forum featured a lineup of distinguished speakers who delved into the latest trends and challenges in AI and data center infrastructure.

Highlights from the forum included: The Future of AI: Mark Hammarstedt from NVIDIA explored the future of AI and the infrastructure required to support it. He emphasized how AI is already transforming every industry, and how the demand for fast and easy deployment is greater than ever.

Nordic Cooperation in Digitalization: Cecilia Leveaux, Senior Advisor in Digitalization at the Nordic Council of Ministers, discussed the importance of Nordic cooperation in advancing digitalization and AI readiness. She highlighted the importance of implementing the recently published AI recommendations and in creating a platform for collaboration across the Nordics.

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Harnessing AI for Societal Impact: A panel discussion explored the ethical and societal implications of AI. Panelists discussed the need for responsible AI development and for taking a positive view on the opportunities presented by AI. Enabling High-Performance AI: Dr. Kunbin Hong from Supermicro presented the latest advancements in server technology and AI factories, emphasizing the importance of coordination across when everything is connected and cloud-based.

The Nordic Advantage in Sustainable AI Ali Syed from the Danish Center for AI discussed the need for robust data infrastructure and the importance of partnerships in handling this newest industrial revolution.

Power and Sustainability – What about Power?

A panel discussion focused on the power requirements of data centers and the importance of sustainable energy sources. Will we be hearing about 10gw announcements in 2025? The panel says yes, and that requires deeper focus on power and time to market for power. Luckily, there is already a strong history of collaboration when it comes to energy in the Nordics.

Delivering Sustainable Digital Infrastructure in the AI Age A panel featuring experts from AWS, Equinix, Green Mountain, and ECODC discussed the challenges and opportunities of delivering sustainable digital infrastructure in the AI-era. According to the panel, power and talented workforce will be the scarcest resources for data centers in the future. They emphasized the importance of being better as an industry to tell the positive stories and effects for society and local communities.

Looking Ahead The event concluded with the heads of the Nordic data center organizations summarizing the past year as well as the planned highlights for 2025. Based on broad agreement that we are stronger together; participants were sent home to ponder how we can facilitate the change in the industry that we are waiting for.

The next Nordic Board meeting and AI Infrastructure Forum are set to take place in Oslo, Norway, on 26 & 27 November 2025.

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THEME: NORDICS & POWER

NORDIC DATA CENTER WEEK 2024

Children, sustainability, and our digital future WRITTEN BY

Christine Kjær Jacobsen

During Nordic Data Center Week, the Data Center Industry spotlighted the critical role data centers play in our digital society. Throughout the week, more than 150 students from 5th and 6th grade visited local data centers in Viborg, Fredericia, and Esbjerg. Data centers also became the focal point for numerous discussions nationwide.

Nordic Data Center Week was held for the first time in September 2024. The event is a collaboration between the Nordic Data Center organizations aimed at promoting knowledge and understanding of the role of data centers in a digitized society.

CEO Henrik Hansen reflects on the week: “This is the first time we have held Nordic Data Center Week, and the interest has been enormous. We have learned that there is great interest in our industry – but we need to become even better at communicating the essential functions we fulfill. This experience has given us the motivation to continue the good work of conveying the role of data centers in society.”

Head of Strategy & Operations, Merima Dzanic, elaborates: “The purpose of Nordic Data Center Week is to spread the message about the role of data centers in society and to create a framework for local communities, businesses, and data centers to work together to create optimal conditions for green transition and digitalization.”

Technological Understanding and Career Opportunities in the Curriculum In Viborg, Fredericia, and Esbjerg, 150 students in 5th and 6th grades received an introduction to the essential functions of data centers in society.

At Bulk in Esbjerg, two 6th-grade classes got an upclose look at the data center and the support functions that keep it running. "You might be the only children in Denmark who have been inside a data center," said Site Manager Rune Bråten. "It’s actually quite unique."

Security in the data center was the first thing the children noticed, and it was also the first item on the agenda. "Security is very important in a data center," emphasized Rune Bråten. "We must protect both our customers' data and each other to ensure no one gets hurt."

Data Centers Are Essential for Roblox and for Mom to Go to Work The Data Center Industry believes that data centers' role in digitalization and the green transition is a topic of great interest to Danish children. Additionally, it plays a crucial part in their digital education and technological understanding.

"I am impressed by the knowledge these children have and how quickly they understood the role a data center plays in their daily lives. Now that they have visited a data center, they also understand that there’s an entire industry behind the internet," said Merima Dzanic, Head of Operations & Strategy at the Data Center Industry. "For children of this age, terms like CPU (Central Processing Unit), hard drive, power supply, and coolers are already part of everyday life, perhaps because they were born digital. This will be a big advantage when they enter the workforce."

For many children, it was eye-opening to realize that the everyday activities they take for granted—like playing games and sending messages on their phones —depend on a data center.

We have learned that there is great interest in our industry – but we need to become even better at communicating the essential functions we fulfill. This experience has given us the motivation to continue the good work of conveying the role of data centers in society.

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THEME: NORDICS & POWER

Collaboration is key to securing tomorrow's workforce The school visits also offered an opportunity to discuss job opportunities and career paths in data centers.

During each visit, employees shared insights into daily life in a data center and the educational paths that led them to a career in the industry.

The Sustainable Data Center of the Future – Designed by school children?

As part of the program, all participating children were challenged to design the world’s most sustainable data center. A prize for the class fund was up for grabs as motivation, and most children participated with great enthusiasm and creative ideas.

In the coming years, the data center industry expects challenges in finding qualified labor, particularly in technical fields. As a relatively new industry in Denmark, lack of awareness is a factor hindering its potential.

The winning design from Kvaglund School in Esbjerg stood out for incorporating sustainable materials and for thinking creatively and outside the box in their solutions. The design included using groundwater as a cooling solution, securing power supply with solar panels on the roof and wind turbines, and building the surrounding fence from recycled plastic and metal.

Finally, drones would monitor the area and predict natural disasters.

In the Q&A sessions, there was widespread interest in how to get a job at a data center. The children asked about salaries, when they could start working, and whether working in a data center is cool.

In Fredericia, Business Fredericia's job ambassador Ruth Axø also expressed enthusiasm for Nordic Data Center Week: "As a job ambassador, I am excited to see bridges being built between young people, education, and the business sector. Knowledge of technological understanding, sustainability, and digitalization has become essential for Danish youth to be competitive in the future job market. Close collaboration between tech companies and schools is essential to ensure these skills."

On behalf of the Danish Data Center Industry, Rune Bråten (DDI board member) from Bulk Data Centers, visited Kvaglund School to present the prize to the delighted children.

Data Centers take center stage at FREDERICIA TALKS Fredericia TALKS is a leadership conference organized

by Business Fredericia and part of the Nordic Data Center Week program. Over 200 business professionals gathered to gain insight into Fredericia’s unique position in the green transition. Seven speakers shared their perspectives on guiding Denmark through the green digital transition.

During the event, Henrik Hansen, CEO Danish Data Center Industry, highlighted why data centers are the driving force behind the digital society.

Director Henrik Hansen elaborated: “Artificial Intelligence (AI) is set to transform the market significantly in the coming years. Concretely, we can expect to see more data centers across Denmark.

Local community support and understanding are crucial for Denmark to continue securing the necessary resources, investments, and favorable conditions for data centers in the future.”

Nordic Data Center Week returns in 2025 Throughout the week of 22 -26 September 2025, events will take place across Finland, Denmark, Sweden, Norway, and Iceland.

Please contact chja@datacenterindustrien.dk for more information or to host an event.

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THEME: NORDICS & POWER

DDI and Bulk bring together key stakeholders for a dialogue on the crucial role of data centers WRITTEN BY

Kurt Henriksen

Folkemødet 2024 provided the setting for a dialogue on the crucial role of data centers in addressing current challenges and solutions within climate, supply, and critical infrastructure. The Danish Data Center Industry collaborated with Bulk Infrastructure in bringing together key stakeholders for a roundtable discussion.

The roundtable featured discussions on the consequences of the rapid developments in artificial intelligence, which places much greater demands on design, infrastructure, and energy consumption, while also emphasizing the central role of data centers in modern digital societies.

Participants in the roundtable discussion included leading figures from the district heating sector, Energinet, and the Danish Energy Agency, from the public sector's procurement and knowledge center, as well as from major international operators of and suppliers to data centers, in addition to the hosts from Bulk and the Data Center Industry.

Rasmus Bisgaard, Regional Business Lead Denmark at NVIDIA, set the tone by providing a brief overview of how quickly AI development is actually progressing: "Every six months, we double performance, and it requires twice as much computing power. So far, it is primarily humans who ask AI systems for help, but soon we will see AI agents asking another AI agent, who asks a third AI agent, and so on. This is where the huge data consumption will come," said Rasmus Bisgaard.

The roundtable discussion was based on this rapid development, which will lead to significantly higher energy consumption. Transparency, flexibility, and integration were three key words in the debate, reflecting some of the common desires on both sides of the table – from both public and private actors. The desire from, among others, the Danish Energy Agency and Energinet was for the data center industry to be more open – for example, about future plans and needs. On the other hand, there was a call for clearer and more proactive announcements, for example, regarding the purchase of system services for balancing the power grid. There was agreement on both sides of the table that more dialogue on specific issues is needed.

The open and informal atmosphere at Folkemødet provided the perfect setting for the discussions, and although the participants were actually gathered around a square table in Allinge, the debate covered the relevant topics that had been set out in advance.

"It was a very good and constructive discussion, where we also touched on some of the sore points – for example, in relation to various obstacles that need to be removed to achieve the common goals," says CEO Henrik Hansen, Danish Data Center Industry.

Co-organizer Bulk Infrastructure, which operates overseas fiber networks and data centers in Norway and Denmark, was also very pleased with the outcome of the roundtable discussion.

"At Bulk, it is an important focus that both customers and industry players are aware of the major upheavals the entire sector is facing with the development of artificial intelligence. Therefore, we also push for dialogues like this roundtable discussion, where we can bring people together on the right solutions across sectors," says Jon Gravråk, CEO of Bulk Infrastructure.

"It was very encouraging to hear the strong commitment from all sides with a strong willingness to come together and solve the common challenges. It gives great appetite to continue the dialogue, and we have agreed to keep the topics on the agenda – both politically and in the broader public," says Henrik Hansen.

Since Folkemødet in 2024, DDI has taken the initiative to continue the dialogue by bringing the relevant actors together on a regular and more binding basis.

DDI joins Folkemødet again in 2025 Building on the success in 2024, we’re expanding our presence at Folkemødet in 2025 with a full day dedicated to data centers.

On June 12th, we’ll be hosting open events as well as invite-only events focused on energy, collaboration, and the impact of data centers on society and local communities.

Join us in Bornholm - get in touch to hear more!

THEME: HEAT REUSE

New political agreement removes the price cap on surplus heat WRITTEN BY

Christine Kjær Jacobsen

A new political agreement will remove the price cap on surplus heat.

This means that district heating companies can now realize the potential of utilizing surplus heat from data centers and other industrial facilities, and this is good news for energy efficiency, consumers and future Danish investments.

The price cap on the utilization of surplus heat has been a controversial issue in the energy industry since 2021.

CEO Henrik Hansen comments, "It is good news that the price cap, which has been a major barrier to the use of surplus heat from, among other things, data centers, is finally being removed. It has taken a long time, but we would like to thank everyone who, together with the Data Center Industry, has fought to stop this obstacle to the green transition."

The data center industry's position has been that the price cap had a negative impact on the green transition, as it has imposed increased risks and costs on district heating companies.

At the same time, the timing has been incomprehensible, as Denmark has simultaneously proposed the implementation of the EU's Energy Efficiency Directive (EED) into Danish legislation. This directive specifically requires data centers, including those in Denmark, to utilize excess heat for district heating, among other things. Thus, the two pieces of legislation have directly contradicted each other.

By removing the price cap, it is now possible to prevent surplus heat from disappearing into thin air, but less coal, oil, gas and biomass can also be used to produce district heating for consumers.

"Utilization of surplus heat is one of Denmark's strong green cards. With the decision of the Danish Parliament to remove the price cap on surplus heat, it will be easier to use surplus heat from data centers in the district heating network. Data centers are increasingly looking to Denmark and the Nordic countries when investing in new facilities, but it requires a stable and sustainable infrastructure to maintain the investments," explains Henrik Hansen.

Now we can future-proof Danish sustainable investment In practice, the price cap has meant that many projects to utilize surplus and waste heat from industry have been dropped, and investments in development have been put on hold or dropped altogether. These projects are now ready to be realized, says Dansk Fjernvarme .

Since its implementation, the price cap has been an unnecessary barrier to the use of surplus heat, including from data centers. It has prevented and delayed the initiation of projects and has specifically resulted in district heating consumers facing more expensive and environmentally damaging heating supplies for a longer period than necessary, as pointed out by Viborg Varme in connection with a surplus heat project in Viborg Municipality.

Surplus heat currently accounts for approximately 4 percent of Denmark's district heating production, but with this agreement, the government and the parties to the agreement want to support the fact that it can be much more in the future. Estimates suggest that existing surplus heat could cover approximately 20 percent of district heating production. But the potential is even greater as further investments are made in data centers and PTX facilities.

"We are now removing a concrete barrier and providing a freer framework so that surplus heat can develop. In return, the district heating companies have a greater responsibility to ensure that projects with companies on surplus heat are economically justifiable and beneficial to consumers. The ceiling made sense to protect consumers, but we can now see that the framework has become too tight. I am pleased that we, together with the parties, have agreed on a solution ," says Minister of Climate, Energy and Utilities Lars Aagaard to Ritzau.

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THEME: HEAT REUSE

Microsoft and VEKS to utilize surplus heat from Danish data center WRITTEN BY

Christine Kjær Jacobsen

An agreement between Microsoft and VEKS will supply upwards of 6000 local households with surplus heat from a Microsoft data center in Høje Taastrup, Denmark.

With this new agreement, Microsoft will capture surplus heat within the data center through an air-to-liquid heat exchanger and redirect it in the form of heated water through a series of pipes to the local district heating network. Heat pumps installed by VEKS will then boost the temperature, while a heat exchanger and underground pipes will deliver the heat to approximately 6000 homes and businesses that are connected to that system.

The datacenter in Høje Taastrup is a part of Microsoft data center Region DENMARK EAST that makes services like Microsoft Azure, Microsoft 365, and Dynamics 365 available with low latency and data stored locally in Denmark. It is one of the first locations where Microsoft will supply surplus heat to the district heating network. The new agreement has been made possible due to existing district heating infrastructure close to the datacenter as well as a strong partnership with VEKS and HTF. Mikael Mikkelsen, Data Center Commercial Director at Microsoft, tells DDI: “It is essential for Microsoft to contribute to the green transition in our local communities. Microsoft has ambitious sustainability goals of being carbon negative, water positive, and have zero waste by 2030, and with the projected growth of data centers in coming years, it is essential that our data centers continue to set new standards for energy efficiency.”

VEKS estimates that not only will this project contribute to the local green transition by reducing emissions (by reusing energy compared to using nonrenewable energy sources) it will also bring savings to residents in the district heating area.

Henrik Hansen, CEO of Danish Data Center Industry adds; “Data centers have the potential to play an important role in the green transition. Projects such as this one are the future of district heating and an important step for increased grid connectivity in Denmark.”

Microsoft has ambitious sustainability goals of being carbon negative, water positive, and having zero waste by 2030, and with the projected growth of data centers in coming years, it is essential that our data centers continue to set new standards for energy efficiency.

The first deliveries of this new project are expected to reach residents during the 2025-2026 heating season.

The Microsoft data center in Høje Taastrup is still under construction. It is expected to open in the fall of 2025.

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THEME: HEAT REUSE

The AI revolution requires a steady hand at the helm WRITTEN BY

Kurt Henriksen

AI development is like a wild volcano brimming with energy—and the looming iceberg on the radar.These intense metaphors feel appropriate when describing the seismic shifts currently rumbling beneath the data center industry, shaking its very foundation.

Powerful forces are at play The AI revolution brings steep learning curves, immense opportunities, and significant risks for those who fail to navigate it carefully. This was underscored at a well-attended networking event on 26 November, hosted by the Danish Data Center Industry and Legrand at Stamholmen in Hvidovre.

“There’s a lot happening in the industry right now. The development is incredible—not only in terms of new projects but also in the influx of capital from new sources. Our industry has become a true darling for investors,” said Henrik Hansen, CEO of the Danish Data Center Industry.

“This opens many opportunities but also places a great responsibility on us as an industry. We must work diligently to improve our energy efficiency, optimize our energy mix, and collaborate more closely with surrounding industries—particularly utility companies.

This will need to be a significant focus in the coming years.”

“For us, the main issue is production capacity for certain components. Since the infamous ship blocked the Suez Canal, we’ve faced challenges. Delivery times have improved from 30 weeks to 12, but that’s still too long to meet customer expectations,” Esmann admitted.

Academic Insights Assistant Professor Raghavendra Selvan from the Department of Computer Science at the University of Copenhagen shared insights into his research on measuring CO2 emissions from machine learning models.

“Our primary focus has been on the direct energy consumption of AI usage. Some language models train on 18 trillion data points—and the numbers are growing exponentially,” Selvan noted.

For example, training a single model like Llama 3 for medical analysis consumed 23,746 MWh of electricity.

Selvan called on the industry to share analysis data for research purposes.

Henrik Hansen highlighted that recent projections from Energinet indicate a sixfold increase in electricity consumption by data centers over the next decade, primarily in Western Denmark, based on known projects.

“These are staggering numbers. We’re in close dialogue with authorities to expedite the development of green energy to meet the anticipated demand,” Hansen emphasized.

“We’ve also provided direct input to the minister regarding our perspective on the AI strategy. There’s a need for much greater awareness at the political level, and we all need to contribute to educating lawmakers about our industry,” he urged.

Preparing for the AI Wave Michael Esmann, BtB Manager at Legrand Data Center Solutions, posed a rhetorical question to the audience: “Is the industry ready for AI?” “At Legrand, we are ready. But what does that actually mean? For us, it’s about delivering the components that enable this, such as transformers, UPS systems, racks, and cooling systems,” Esmann explained.

He also addressed the challenges posed by the rapid pace of AI development.

We must work diligently to improve our energy efficiency, optimize our energy mix, and collaborate more closely with surrounding industries—particularly utility companies. This will need to be a significant focus in the coming years.

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THEME: HEAT REUSE

“It’s challenging to distinguish between traditional data centers and AI in terms of electricity consumption. But energy production for data centers is becoming a bottleneck. The growth is equivalent to adding another Sweden—or even another Germany—to the grid,” Selvan illustrated.

Part of the solution could lie in ‘green scheduling,’ pushing computations to periods with lower CO2 footprints.

“However, this must be done without compromising user experience. If users get a response saying, ‘It’ll be windy in three hours—check back then,’ they won’t accept that,” Raghavendra Selvan said.

Unlocking the Potential of Waste Heat Frederik Rugaard from Høje Taastrup District Heating shared insights into projects utilizing waste heat from data centers, including a collaboration with Nordea that saves 57 tons of CO2 annually while heating 700 households.

Innovation Must Accelerate The event concluded with a panel debate on whether industry innovation can keep pace with AI development. Alberto Ravagni, CEO of Net Zero Innovation Hub, stressed the need for a shift: “AI development requires a new approach—slow, continuous growth won’t suffice. We need innovation, particularly collaborative innovation within the industry.”

The discussion highlighted modular solutions, such as container-based systems, as a potential way to accelerate development.

“When you work with ‘Lego bricks,’ you can test quickly and later modify the components inside the box,” Ravagni noted.

The industry faces a rapidly evolving landscape, and collaboration, adaptability, and innovation will be critical to navigating the AI revolution effectively.

Similar initiatives with GlobalConnect and Microsoft are expanding this concept, but challenges remain, such as the regulated price cap on waste heat. Rugaard called for flexible regulations to maximize waste heat utilization.

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