Iceland Data Center Market Research Report by Arizton
According to Arizton’s latest research report, the Iceland data center market [https://www.arizton.com/market-reports/iceland-data-center-market] to grow at a CAGR of 11.39% during the forecast period 2024-2030.
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Report Scope:
MARKET SIZE (INVESTMENT): USD 812 Million (2030)
MARKET SIZE (AREA): 208. Thousand Sq. Feet (2030)
MARKET SIZE (POWER CAPACITY): 52 MW (2030)
CAGR – INVESTMENT (2024-2030): 11.39%
COLOCATION MARKET SIZE (REVENUE): USD 397 Million (2030)
HISTORIC YEAR: 2021-2023
BASE YEAR: 2024
FORECAST YEAR: 2025-2030
Iceland Data Center Market Outlook: Green Infrastructure and Emerging Investment Hubs
Iceland data center market, contributing nearly 10% of Nordic investments and over 5% of national GDP, is projected to reach USD 812 million by 2025, driven by rising demand for sustainable digital infrastructure. Operators benefit from Iceland’s naturally cool climate and fully renewable energy supply, a balanced mix of hydropower and geothermal, which deliver excellent energy efficiency and cost advantages.
Strategic policy measures, including district heating integration, circular economy practices, and expanded subsea cable capacity, further enhance Iceland’s competitiveness as a low-latency hub connecting Europe and North America. While Reykjavik leads development, secondary locations such as Keflavik, Blonduos, and Akureyri are gaining traction among colocation and cloud service providers seeking scalable, green capacity in a stable regulatory environment
Iceland Strengthens Data Center Market with AI-Ready, Low-Carbon Infrastructure
Iceland’s data center sector is rapidly evolving with advanced AI and automation to boost operational efficiency and meet growing demand for high-performance computing (HPC) and cloud services. Emerging technologies such as AI-driven cooling, dynamic workload management, and intelligent energy optimization are becoming standard as digital transformation accelerates. Backed by supportive government policies, green energy, and international partnerships, Iceland is positioning itself as a leading AI-ready hub in the Nordics.
As hyperscale operators and machine learning providers diversify HPC infrastructure globally, Iceland offers resilient, low-carbon capacity for high-density, high-bandwidth workloads. Recent developments, including DataCrunch’s USD 13 million funding round to scale AI cloud resources with cutting-edge NVIDIA GPU clusters, underscore Iceland’s rising appeal for next-generation digital investments and sustainable HPC expansion
Key Highlights:
* Iceland data center growth is supported by reliable green energy, strong inland and subsea cable links, and a stable regulatory framework.
* Reykjavik leads as the main hub for advanced data centers and cloud regions, with land prices ranging from USD 4,500-7,000 per sq m (Jan 2025).
* Northern regions like Akureyri offer lower setup costs and quality infrastructure for expansion.
* As an EEA and WTO member with over 50 double tax treaties, Iceland provides tariff-free EU access and competitive corporate tax rates.
* AI adoption could add up to USD 11.8 billion to Iceland’s economy by 2029.
* Operators achieve top-tier energy efficiency with PUE ratios between 1.1 and 1.2, outperforming the global average.
Iceland Expanding 5G and Edge Infrastructure Positions It as a Nordic Digital Hub
Iceland is steadily reinforcing its position as a Nordic digital hub by expanding its 5G network and edge infrastructure to enable advanced applications in smart manufacturing, connected cities, and cloud services. Leading operators Nova, Siminn, and Vodafone plan to achieve 90% nationwide 5G coverage by early 2025 while retiring legacy 2G and 3G networks by year-end.
With a global ranking of 6th for overall network performance (Opensignal, Q1 2025) and gigabit broadband adoption well above the OECD average, Iceland pairs robust connectivity with abundant renewable energy. International players such as Internet Initiative Japan (IIJ) are already piloting renewable-powered micro data centers to strengthen edge capabilities, further positioning Iceland as a sustainable, low-latency base for next-generation digital growth across the Nordics.
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The segmentation includes:
IT Infrastructure
* Server Infrastructure
* Storage Infrastructure
* Network Infrastructure
Electrical Infrastructure
* UPS Systems
* Generators
* Switches & Switchgears
* PDUs
* Other Electrical Infrastructure
Mechanical Infrastructure
* Cooling Systems
* Rack Cabinets
* Other Mechanical Infrastructure
Cooling Systems
* CRAC and CRAH
* Chillers
* Cooling Towers, Condensers, and Dry Coolers
* Other Cooling Units
General Construction
* Core & Shell Development
* Installation & commissioning Services
* Building & Engineering Design
* Fire Detection & Suppression Systems
* Physical Security
* Data Center Infrastructure Management (DCIM)
Tier Standard
* Tier I & Tier II
* Tier III
* Tier IV
Vendor Landscape
IT Infrastructure Providers
* Broadcom
* Cisco
* Dell Technologies
* Hewlett-Packard Enterprise
* Huawei Technologies
* Hitachi Vantara
* IBM
* Lenovo
* NetApp
Data Center Construction Contractors & Sub-Contractors
* AVH
* Blikk & Taekni
* COWI
* Perago Bygg
* Rafeyri
* Raftakn
Support Infrastructure Providers
* Alfa Laval
* Carrier
* Eaton
* Legrand
* Schneider Electric
* Socomec
* STULZ
* Vertiv
Data Center Investors
* North
* Borealis Data Center
* Verne
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https://www.arizton.com/market-reports/ireland-data-center-market-2025
Key Questions Answered in the Report:
* How big is the Iceland data center market?
* How much MW of power capacity will be added across Iceland during 2025-2030?
* What is the growth rate of the Iceland data center market?
* What factors are driving the Iceland data center market?
What’s Included in the Iceland Data Center Market Report?
This research provides a complete view of Iceland’s data center market, covering market size, colocation revenue, installed power capacity, and detailed investment insights by city and facility. It offers an in-depth analysis of 8 existing and 2 upcoming third-party sites across 4+ key locations, with forecasts to 2030.
The report breaks down investments by IT, power, cooling, and construction segments, highlights trends, growth opportunities, and market challenges, and profiles leading infrastructure providers and investors. Supported by a clear, transparent methodology, this study helps industry stakeholders make informed, strategic decisions in Iceland’s expanding digital infrastructure landscape.
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