Denmark, The New Digital Data & Connectivity Hub in Europe

By Jasmine Bedi
Kim is involved in assisting foreign owned companies that are considering establishing business activities in Denmark. Kim has participated in more than 30 successful investment projects, including recent hyperscale data center projects.

Published in Issue 1 | MARCH 10, 2019

DK is the official abbreviation for Denmark - most people will recognise this from Danish websites, etc. Now “DK” also seems to becoming an abbreviation for “Digital Kingdom”. Denmark is rapidly turning into the new digital hub of Northern Europe with a series of attractive conditions for data centre investors and companies, including availability of green power and a solid digital infrastructure.

The Danish data centre market benefits from exceptional grid reliability, competitive power costs, availability of renewable energy, a cool climate, the opportunity to reuse waste heat, political and financial stability, low risk of natural disasters, and much more.

During the last couple of years, several of the world’s largest tech companies pinpointed Denmark as a top European location for data centres. Apple is currently building one of the world’s largest data centres (potentially 160,000 m2) near the city of Viborg and has acquired a second, even larger, site near the city of Aabenraa, close to the Danish-German border. Facebook has a 53,000 m2 data centre under construction in Odense, right in the middle of Denmark, and have recently confirmed they are considering a second site near Esbjerg.

Last, but not least, Google has acquired two large-scale sites near the cities of Fredericia and Aabenraa respectively and they recently announced that construction of a hyperscale data centre has started at the Fredericia site.

As the official investment promotion agency within the Danish Ministry of Foreign Affairs, Invest in Denmark has access to key decision makers at the national as well as regional level through offices across the country – and around the globe. The agency is a one-stop service for foreign companies looking to set up or expand business or research activities in Denmark. All services are free of charge and with full confidentiality guaranteed.

Unique digital connectivity

The Irish fibre cable capacity provider, AquaComms, has announced two subsea cable projects which are going to land in the Esbjerg/Varde region on the Danish west coast. Furthermore, construction of a combined power and fibre cable, connecting Esbjerg with Emshaven in the Netherlands is underway. This cable is owned by the Danish and Dutch TSOs.

The two AquaComms projects are the “Havfrue” cable connecting Denmark with New Jersey in the US, and “North Sea Connect”, which will connect Denmark with the UK and Ireland. These three new subsea fibre projects, combined with existing fibre connectivity to Central Europe and the other Nordic countries, are turning the Esbjerg/Varde region in western Denmark, and Denmark in general, into a true digital connectivity hub.

Reliable low cost green power

The Danish power grid is extremely reliable. Of all European countries, only Luxembourg has a marginally more reliable power grid than Denmark.

In addition, 72% of the power available in Denmark currently comes from renewable sources. This is expected to increase to 80% by 2022 and 100% by 2030.

Finally, the cost of electricity in Denmark is much lower than the European average. The gradual phase out of the PSO tax on power will reduce costs further. Depending on the market price development, this is expected to bring power costs down to around 5 euro cent per kWh or less by 2021, which is more or less equivalent to the price level of the other Nordic countries.