Sweden Ranks Among Europe’s Attractive Data Center Markets

Sweden is among Europe’s more attractive markets for new data centers, according to an EY report comparing conditions in 19 European countries. The report weighs access to electricity, grid capacity, costs and climate.

Frankfurt, London, Amsterdam, Paris and Dublin accounted for more than 60% of Europe’s data center capacity at the start of 2025. Shortages of land and long waits for grid connections are pushing investment toward other markets, the report says.

EY cites Sweden’s high share of fossil-free electricity, competitive power prices and climate, which reduces the need for cooling. The report says data centers could account for more than 8% of Sweden’s electricity use by 2035.

Worldwide, data center electricity use is expected to roughly double by 2030, reaching nearly 1,000 TWh. EY estimates that around 20% of the data center capacity planned by then could be delayed because of grid constraints.