Microsoft Buys Private Real-Estate Developer’s Land To Expand Data Centres In Sweden

The Nordics have made it once more this time with Microsoft acquiring a parcel of land in the municipality of Staffanstorp outside of Malmö in southern Sweden from a private real-estate developer.

Although values and details of the deal have not been disclosed, Microsoft has confirmed it intends to construct a data centre on the site.

Efforts to support and facilitate the site selection process and acquisition of the property have been a close collaboration between Business Sweden, Invest in Skåne and Staffanstorp municipality.

Speaking to Data Economy, Tomas Sokolnicki, Investment Advisor at Business Sweden, said: “We have had a very broad and long-term relationship with Microsoft, and worked together during a number of years to identify suitable locations for a significant establishment.”

Sokolnicki explained that the result of the country’s work to attract data centre developers is palpable and Microsoft is an example of such efforts.

Active in Sweden since the early 1980s, Microsoft are constructing large-scale facilities in three cities/municipalities: Sandviken and Gävle outside of Stockholm, and Staffanstorp in southern Sweden close to Denmark.

Sokolnicki added: “A lot of the focus in our discussions has been around sustainability, and how we can achieve the next level.

“Satya Nadella was here [in Sweden] in May and confirmed that the data centres in Sweden will be “among the most sustainably designed and operated in the world with the ultimate ambition of achieving zero-carbon operations”. This is a very bold ambition and Sweden (including partners like Vattenfall) are committed to supporting this endeavour.

“We’ve also been very focused on assuring that the facilities will have the flexibility to grow and scale with the needs of the cloud market.”

Also commenting on the land acquisition, Ulrika Ringdahl, Managing Director at Invest in Skåne, said that Microsoft’s move is part of the region’s long-term strategy to highlight Southern Sweden as a leader in innovation and tech competence.

“Our region has a long history of engineering, science and education, resulting in a rich ecosystem of innovative technologies, companies and collaboration. Our hope it that this investment will bring new jobs and skills into the region,” she said.

The data centre industry in Sweden has experienced steady, double-digit growth for the past few years and a recent report by the Nordic Council of Ministers predicts investments in construction reaching several billion Euros annually by 2025.

Speaking on how much more is left for hyperscalers in Sweden to enjoy from, Sokolnicki added that with the establishment of new hubs in the south, the country is proving that it has relevant offerings across the entire land.

“Several regions are developing offerings for the data centre industry. There are new regions who are also identifying good conditions including land, power and required infrastructure. These offerings could serve the data centre industry but also other energy-intensive industries who require a sustainable footprint and where electrification is a key component.”

source dataeconomy

Industry: Data Centre / Data Center