(MENAFN- GlobeNewsWire - Nasdaq) Iceland's Data Center Market is set to reach USD 812 Million by 2030 with a CAGR of 11.39%. Key growth drivers include bitcoin mining, high power reliability, renewable energy, and robust connectivity. Reykjavik emerges as a prime data center hub, supported by a conducive business environment and lower corporate taxes. The market benefits from Iceland's EEA and WTO ties, offering tariff-free EU access. With data centers achieving top-tier energy efficiencies and potential AI-driven economic boosts, Iceland is poised for significant expansion in IT infrastructure, power, cooling, and construction services.Dublin, July 29, 2025 (GLOBE NEWSWIRE) -- The "Iceland Data Center Market - Investment Analysis & Growth Opportunities 2025-2030" report has been added to ResearchAndMarkets.com's offering.
The Icelandic Data Center Market was valued at USD 425 Million in 2024, and is projected to reach USD 812 Million by 2030, rising at a CAGR of 11.39%.
In the current landscape of colocation investors, several established companies play a significant role. Notable players in the Icelandic data center market include atNorth, Borealis Data Center, and Verne.
atNorth and Borealis, utilize direct-air cooling at their facilities to bring down the temperature of their units.
As of 2025, there is no direct presence of major hyperscalers in the Icelandic data center market. However, growing investment, 100% renewable energy, excellent global connectivity, and favorable climate conditions position Iceland as a strong candidate for future hyperscale expansion.
KEY HIGHLIGHTS
The Iceland data center market growth is driven by several factors, including the presence of bitcoin miners, high power reliability, the presence of green energy, suitable climatic conditions, high internet and social media penetration, strong inland and submarine cable connectivity, and a strong regulatory framework. Reykjavik is the data center destination in the country. The city is marked by a concentrated growth in advanced facilities, hyperscale data centers, and dedicated cloud regions. As of January 2025, the industrial price of land in Reykjavik, Iceland, ranged between $4,500-$7,000 per sq m. Furthermore, Akureyri & Northern Iceland region also have a lower entry price than Reykjavik, along with a quality infrastructure. As a European Economic Area (EEA) member, Iceland provides tariff-free access to the EU market, paired with World Trade Organization (WTO) membership, 50+ double tax treaties, and trade agreements. It offers a reduced corporate tax rate as compared to Organisation for Economic Co-operation and Development (OECD) countries, which plays a significant role in attracting investments in the Iceland data center market. According to a report by the Ministry and Statistics Iceland, effective adoption of AI in Iceland could add between USD 1.42 billion and USD 11.83 billion to the economy of Iceland by 2029, depending on how quickly and widely AI is used. Data center operators in Iceland consistently achieve low PUE ratios, between 1.1 and 1.2, far below the global average (1.57), showcasing top-tier energy efficiency.
SEGMENTATION ANALYSIS:
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
WHY SHOULD YOU BUY THIS RESEARCH?
Market size available in the investment area, power capacity, and the Iceland colocation market revenue. Data center investments in the area (square feet) and power capacity (MW) across cities in the country. A detailed study of the existing Iceland data center market landscape, an in-depth market analysis, and insightful predictions about the Iceland data center market size during the forecast period. Snapshot of existing and upcoming third-party data center facilities in Iceland Facilities Covered (Existing): 08 Facilities Identified (Upcoming): 02 Coverage: 4+ Locations Existing vs. Upcoming (Data Center Area) Existing vs. Upcoming (IT Load Capacity)
Data center colocation market in Iceland Colocation Market Revenue & Forecast (2021-2030) The Iceland data center landscape market investments are classified into IT, power, cooling, and general construction services, with sizing and forecast. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry. A transparent research methodology and the analysis of the demand and supply aspects of the industry.
EXISTING VS. UPCOMING DATA CENTERS
Existing Facilities in the region (Area and Power Capacity) List of Upcoming Facilities in the region (Area and Power Capacity)
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
atNorth Borealis Data Center Verne
KEY QUESTIONS ANSWERED
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?
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 89 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value (USD) in 2024 | $425 Million |
| Forecasted Market Value (USD) by 2030 | $812 Million |
| Compound Annual Growth Rate | 11.3% |
| Regions Covered | Iceland |
Key Topics Covered:
1. Existing & Upcoming Third-Party Data Centers in Iceland
1.1. Data Center Snapshot
1.2. Data Center Snapshot by Cities
1.3. Existing & Upcoming Data Center Supply in Iceland
1.4. List of Upcoming Data Center Projects in Iceland
2. Investment Opportunities in Iceland
2.1. Microeconomic & Macroeconomic Factors for Iceland Market
2.2. Impact of the Ongoing Tariff War
2.3. Investment Opportunities in Iceland
2.4. Digital Data in Iceland
2.5. Investment by Area
2.6. Investment by Power Capacity
3. Data Center Colocation Market in Iceland
3.1. Colocation Services Market in Iceland
4. Market Dynamics
4.1. Market Enablers
4.2. Market Trends
4.3. Market Restraints
5. Market Segmentation
5.1. IT Infrastructure: Market Size & Forecast
5.2. Electrical Infrastructure: Market Size & Forecast
5.3. Mechanical Infrastructure: Market Size & Forecast
5.4. General Construction: Market Size & Forecast
5.5. Tier Standard Investment
5.5.1. Tier I & II
5.5.2. Tier III
5.5.3. Tier IV
6. Key Market Participants
6.1. IT Infrastructure Providers
6.2. Construction Contractors & Sub-Contractors
6.3. Support Infrastructure Providers
6.4. Data Center Investors
7. Appendix
7.1. Market Derivation
7.2. Data Center Site Selection Criteria
7.3. Quantitative Summary
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Icelandic Data Center Market
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