Sneak peak interview: 2024 market report

If you had to highlight just one key takeaway, what would it be? 

“Without a doubt the key takeaway is the impact of artificial intelligence on data centers. It is already disrupting our industry as we speak, and in a very big way. As AI moves into our workplaces and homes, it will have a tremendous impact on how we design, build, and operate data centers. Can we keep energy consumption at bay as AI workloads skyrocket?   

My take is that given the nature of the industry, we always find a way. Looking at the industry’s track record, in many ways it has done a great job so far.  

Many industry predictions point toward that AI will have an even greater impact on data centers than even the emergence of the cloud did over 10 years ago. AI workloads will require higher density in the data center, and it is pushing operators to introduce new and innovative power and cooling designs in their data centers. Simultaneously European data centers are being challenged on their energy consumption with the upcoming EED. Balancing the two will certainly be a challenge for many operators.  

Overall, the findings from the report are very clear: The industry is gearing up and preparing for the AI-driven world.” 



This is the fourth time creating a market report for the Danish data center market. What surprised you the most while writing this year’s report?  

“The sheer pace of the roll-out of AI, and how it is already impacting domestic operators, is incredible but very surprising. We all predicted this ages ago, AI is not new, but the industry didn't expect it to take off the way it has in 2023.  

 I think everyone in the industry had the mindset that AI rollouts would be gradually rolled out by 2030 – in other words operators had time to expand their infrastructure.  But 2023 was indeed a pivotal year for AI investments, and now everyone is rushing to capitalize on the AI goldrush. The investment decisions have been made. This year we will see a rapid build-out, expansion plans and new market entrants. It is exciting for sure, but it also comes with its challenges. Operators must rethink their designs to ensure energy efficiency and sustainability are at the forefront.” 

A few years ago, everyone went into “the cloud.” What do you think we will see more of in Denmark in the future: cloud vs. on-premises solutions? 

“IT leaders are feeling the increased cloud costs for sure. Last year's price hikes are prompting them to look towards more hybrid IT models. Cloud-lock-in has also been a headache for some organizations. For cloud operators to be competitive, they must offer more agility and flexibility to their customers.  

On the other hand, the cloud is absolutely here to stay. From an efficiency point of view to security and the overall sustainability footprint, cloud is still leading the way here.  

Uncertainty around AI, where and how it will land, is also creating a lot of hesitation for IT leaders in Denmark. There is a sense of urgency, but at the same time, they want to learn from their cloud experiences, and approach their AI infrastructure needs differently. It will certainly be interesting to see where this lands.  

But overall, I’d say all roads lead to a hybrid IT setup. The IT infrastructure landscape will increasingly become more decentralised in years to come.” 

What do you see as the biggest obstacles and opportunities for growth on the Danish market currently?  

“We are perfect, there are no obstacles on the Danish market! Jokes aside, of course there is the classic question on rising energy consumption and sustainability, which at this point is rather speculative.  

Previous predictions and scary statistics predicted that data centers would gobble a lot of the world’s electricity by now. None of these predictions came true. In truth, it is and always has been in the interest of the industry to keep energy consumption at bay.  

Of course, Danish  data center operators are already focused on what is going on inside the fence, but they have less control over the “outside the fence” part. The regulatory landscape needs to catch on and stop creating hurdles. A prime example is the price cap on excess heat that was introduced last year. This goes against common sense. Removing these regulatory redtapes would be a great start. 

The industry is there and willing to be a part of the solution, but there needs to be more political focus to create the neccesary conditions which will enable data centers to be a part of our energy systems.”