Colocation is the practice of housing multiple customers’ servers and other computing hardware in a shared facility. Businesses rent space for their own servers, which then share networking, security measures, power sources and cooling systems to keep their servers running efficiently and cost-effectively.
Because of Sweden’s cold climate and green energy network, not only can data center operators in Sweden capture and reuse excess heat, they can even earn money by selling it back to the grid. Close to 100 percent of Sweden’s power is carbon-neutral thanks to an extensive supply of hydropower and other renewable sources like wind and biofuel.
Sweden has become something of a colocation hotspot. International colocation giants like Equinix and Interxion have large Swedish operations while Nordic companies like DigiPlex have quickly established themselves as major players. Startups including Multigrid and Eco Data Center are also hoping to ride the wave. Several companies, such as Fortlax, Hydro66, and Etix Everywhere, are attracting international clients by leveraging Sweden’s northern qualities.
But it’s not just Sweden’s cold weather that brings in customers. The country’s infrastructure and unparalleled connectivity to the rest of the world also plays a major role, as does its long-term political stability.