Today, Google has announced its decision to invest in a new hyperscale data centre close to Fredericia in Denmark. The projected investment amounts to EUR 600 million and the decision follows close cooperation between Google, Invest in Denmark, the Region of Southern Denmark and Fredericia Municipality.
According to an economic forecast by the analysis institute, Copenhagen Economics, the investment will have a positive effect on the Danish economy of up to EUR 740 million during the construction period running until 2021. In full operation, the data centre is expected to support additional economic activity in Denmark with up to EUR 80 million annually during the first five years.
Minister of Foreign Affairs Anders Samuelsen says:
”I am happy that Google is investing in Denmark. The investment creates jobs and growth. And given that three of the world’s five most valuable companies now have chosen to invest in Denmark, it increases our opportunities for attracting a number of smaller and medium-sized companies and other digital investments. I am pleased that the Ministry of Foreign Affairs through Invest in Denmark has been able contribute to this development.
The total amount of global data is doubled every second year, and the demand for data processing and storage has grown exponentially. In a few years, it will be servers near Fredericia that make it possible for people or businesses to perform Google searches, write Gmail or watch YouTube. In addition to the investment in the data centre near Fredericia, Google is also part of a consortium of companies that have invested in a new subsea fibre network between USA and the West Coast of Denmark – the so-called Havfrue subsea cable – which is set to double Denmark’s internet connectivity to North America.
Minister of Foreign Affairs Anders Samuelsen continues:
”There is no doubt that the future is digital. And with their investment in Frederica and the fibre network between Esbjerg and USA, Google is contributing to Denmark’s data infrastructure. This reinforces Denmark’s position as one of the global leaders in the competition for digital development and jobs. At the same time, I think there is a good match between Google’s green ambitions and CO2-neutral approach and what we can offer in Denmark. In a time with such a significant increase in energy consumption by data centres, it is especially positive that Google can offer a high degree of energy efficiency”.
Besides Google’s decision to establish a data center in Fredericia, Invest in Denmark in cooperation with the Regions of Western Denmark have contributed to attracting Denmark’s three other hyperscale data centres in Viborg and Aabenraa (both Apple) and Odense (Facebook).
A report prepared by COWI for the Nordic Council of Ministers published 20 November 2018 concludes that the Nordic region has great potential for attracting further investments in data centres and the downstream industry. COWI estimates that the data centre market could attract annual investments in the order of between 2 and 4.3 billion EUR in the Nordic countries by 2025. Largely driven by the attractive framework conditions and the increasing demand for data processing and storage.