Skanska to prep hyperscale data centre construction in Norway

The Sweden-based construction company will do preliminary work on a new data centre facility for WS Computing AS in Gromstul in Skien, Norway

The contract is worth SEK 1.1 billion (US$105 million) and is for introductory groundwork and foundation construction for a hyperscale data centre.

鈥楬yperscale鈥 refers to large facilities that can house more servers and machines than an average data centre.

Work will include building new access roads along with infrastructure and site development. Construction will start immediately and is expected to finish in the fourth quarter of 2025.

Data centre builds on the rise

There鈥檚 been a flurry of announcements for new data centre projects globally, and according to , more are expected through the next four years.

In their publication Europe Data Center Construction Market - Industry Outlook & Forecast 2023-2028, Arizton valued the European data centre construction market at US$10.5 billion and expect it to grow to $14.2 billion by 2028. That鈥檚 a compound annual growth rate (CAGR) of 5.23%.

鈥淭he region is experiencing rapid growth in technology and innovation, resulting in significant investments in the market,鈥 stated the report. 鈥淭his is driven by factors such as land price and stability, free cooling options, carrier accessibility, accessibility of connectivity & power, and tax incentives.鈥

The research noted Germany led all European countries in data facility construction with the UK and France close behind.

For Skanska, the Norway project is the . Last year, the company started work on a 鈧183 million ($197 million) centre upgrade near London, UK.

In Norway, last year, construction started on the Harmar Data Centre Complex, a 150MW facility. In France, a 130MW centre near Les Ulis is in the building stage, and the Roskilde Data Centre in Denmark project also commenced in 2023. All three projects are scheduled for completion in 2025.

One of the largest data centre build announcements came just last month.

Digital render of Google's planned data centre in Waltham Cross, UK Digital render of Google鈥檚 planned data centre in Waltham Cross, UK (Image: Google)

for a UK data centre in Waltham Cross, Hertfordshire. The 33-acre (13.4-hectare) site will support development for new AI-powered technologies and powers services like Google Maps, YouTube, and others.

Arizton noted that green and sustainability cooperation between tech companies and European governments has helped stimulate growth in the sector.

鈥淭he government鈥檚 interest in promoting data centre investments through the land for development and renewable energy procurement, and reducing electricity tariffs, will drive the colocation market in Europe during the forecast period,鈥 said Arizton. 鈥淭he trend of procuring renewable energy to power data centre facilities will likely continue, with several operators signing power purchase agreements with renewable energy companies.鈥

The report added that continent-wide adoption of 5G cellular networks has driven the need for more data centres including hyperscale facilities. Arizton also said increased adoption of cloud services and artificial intelligence, as well as sustainability initiatives, have led to demand for new builds and centre upgrades.

鈥淪everal countries are offering tax incentives to local and global investors to facilitate the construction of data centres,鈥 said Arizton. 鈥淪pain invests heavily in digitalisation, with plans to invest around $720 million toward strengthening artificial intelligence. France has reduced taxes on electricity to attract data centre investments, while the UK government has established a low-percentage corporate tax rate of 20% - the lowest among G20 countries.鈥

The report also noted the Federal Act on Data Protection (FADP) in Switzerland and Denmark鈥檚 Green Tax Reform initiative as examples of legislative action leading to more data centre construction.

The attention on data centre builds should spur more competition in the sector, Arizton believes.

鈥淣ew players will likely enter the Europe data centre construction market due to the increasing demand for data storage and hosting services,鈥 stated the report. 鈥淪till, they will face competition from local and established global players.鈥

A digital render of Meta's data centre campus in Jeffersonville, Indiana, which Turner will start building this month A digital render of Meta鈥檚 data centre campus in Jeffersonville, Indiana, which Turner will start building this month (Image: Turner)
What are the world鈥檚 top data centre building countries?

While the European market for data facility construction is seeing growth, the region is still behind North America, particularly the US, in the sector.

, the US leads all countries with 5,375 data centres (as of 2023). A distant second is Germany with 522. The UK recorded 517.

The deficit rose sharply in just the last three years: that the US had 2,653 data centres (the amount nearly doubled in three years).

By comparison, the UK recorded 451 centres in 2021, and Germany had 442.

China is the top country from Asia with 448 reported data centres in the country. Canada is ranked fifth in 2023 with 335 data centres.

STAY CONNECTED

Receive the information you need when you need it through our world-leading magazines, newsletters and daily briefings.

CONNECT WITH THE TEAM
Andy Brown Editor, Editorial, UK - Wadhurst Tel: +44 (0) 1892 786224 E-mail: [email protected]
Neil Gerrard Senior Editor, Editorial, UK - Wadhurst Tel: +44 (0) 7355 092 771 E-mail: [email protected]
Catrin Jones Deputy Editor, Editorial, UK 鈥 Wadhurst Tel: +44 (0) 791 2298 133 E-mail: [email protected]
Eleanor Shefford Brand Manager Tel: +44 (0) 1892 786 236 E-mail: [email protected]
CONNECT WITH SOCIAL MEDIA