According to Arizton’s latest research, Iceland’s data center colocation market is poised for robust expansion, projected to grow from USD 170 million in 2024 to USD 375 million by 2030, at a CAGR of 14.09%. The country currently hosts around seven operational colocation facilities, with several new developments in the pipeline. Backed by a stable digital ecosystem, abundant renewable energy, and rising investor confidence, Iceland’s colocation landscape is set to witness steady growth as both existing and new players expand their footprint in the coming years.
Explore the Full Market Insights: https://www.arizton.com/market-reports/iceland-data-center-colocation-market
Report Summary:
MARKET SIZE - COLOCATION REVENUE: USD 375 Million (2030)
CAGR - COLOCATION REVENUE: 14.09% (2024-2030)
MARKET SIZE - UTILIZED WHITE FLOOR AREA: 1,283.6 thousand sq. feet (2030)
MARKET SIZE - UTILIZED RACKS: 34.6 thousand units (2030)
MARKET SIZE - UTILIZED IT POWER CAPACITY: 282 MW (2030)
BASE YEAR: 2024
FORECAST YEAR: 2025-2030
Iceland’s Data Center Colocation Area Expands Nearly 20% in 2025
Iceland’s data center colocation market is expanding rapidly, with utilization growing by nearly 20% in 2025. The country’s strong fundamentals, from low corporate tax rates and abundant land availability to 100% renewable, cost-efficient power, continue to attract global operators seeking sustainable infrastructure options. Industrial land in Reykjavik remains premium, while Northern regions such as Akureyri offer competitive pricing and solid infrastructure, encouraging new investments beyond the capital. Leading players like at North are strengthening this ecosystem, operating large-scale facilities across Reykjavik, Keflavik, and Akureyri, and reinforcing Iceland’s emergence as a strategic green data hub in Europe.
Factors Attracting Colocation Investments in Iceland Data Center Market
- Strong Connectivity: Four submarine cables link Iceland to key markets in Europe and North America, ensuring low-latency access.
- Growing Tech Talent: Rising AI and edge computing trends have boosted demand for skilled IT professionals by over 30% YoY.
- Resilient & Green Infrastructure: Data centers are built to withstand seismic risks, powered entirely by renewable energy, with a national goal of carbon neutrality by 2040.
- Supportive Policies: As part of the EEA, Iceland follows GDPR standards and offers tax benefits for green investments.
Iceland’s IoT Market Surges Toward USD 485 Million - Smart Cities Lead the Way
Iceland is rapidly advancing in digital innovation, with big data and IoT technologies transforming how industries operate, and cities evolve. These technologies are driving efficiency across healthcare, transportation, and energy, supporting the country’s broader smart city vision. The IoT market in Iceland is projected to record USD 282 million in revenue by 2025, growing at a CAGR of around 12% to reach USD 485 million by 2030.
IoT adoption is visible across smart city projects, from smart poles and patrol boxes to traffic and air quality management, disaster preparedness, and waste management. The growing use of analytics, cloud, and wireless technologies is prompting organizations to scale IoT investments further. Platforms such as Civil IoT Iceland are strengthening this shift by delivering real-time and historical data, supported by strong computing power for AI-based applications and simulation analysis.
Iceland’s Data Center Market Enters the Era of Intelligent Operations
Iceland’s data center market is entering a new phase of intelligence, where AI and automation are redefining how facilities operate and scale. From AI-driven cooling systems to workload optimization, these technologies are becoming central to managing rising high-performance computing (HPC) demand and supporting the rapid expansion of cloud and digital transformation industries. The government’s commitment adds further momentum, following the AI Strategy of Iceland introduced in 2021, the Ministry of Universities, Industry, and Innovation has outlined a draft AI Action Plan (2024–2026) focused on modernizing public services, strengthening infrastructure, and building a competitive, digitally empowered economy.
Vendor Landscape
Existing Colocation Operators
- atNorth
- Verne
- Borealis Data Center
New Operators
- GIGA-42 (Global InterConnection Group & SCALE-42)
The report includes:
- Colocation Supply (MW, Area, Rack Capacity)
- Colocation Demand (MW, Area, Rack Capacity) and by End-User (Cloud/IT, BFSI, etc.)
- Colocation Revenue (Retail & Wholesale Colocation Services)
- Competitive Scenario (Share Analysis by Revenue & MW Capacity)
Related Reports That May Align with Your Business Needs
Iceland Data Center Market - Investment Analysis & Growth Opportunities 2025-2030
https://www.arizton.com/market-reports/iceland-data-center-market
Nordics Existing & Upcoming Data Center Portfolio
https://www.arizton.com/market-reports/nordics-data-center-portfolio
What Key Findings Will Our Research Analysis Reveal?
- What is the count of existing and upcoming colocation data center facilities in Iceland?
- How much MW of IT power capacity is likely to be utilized in the Iceland by 2030?
- What factors are driving the Iceland data center colocation market?
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