Denmark’s Winning Formula for Sustainable Data Centers

How is it that Denmark, with a population of 6 million, has become a major nexus for sustainable data centers? Cool Vector convened a lively, in-depth conversation with CEOs from Digital Realty, atNorth and Danish Datacenter Industrien to learn the country's formula for public-private collaboration and digital infrastructure success. 

Joining the conversation are Pernille Hoffmann, CEO of Digital Realty (Denmark & Nordics), Magnus Kristinsson, CEO of atNorth and Henrik Hansen, CEO of industry advocate Danish Datacenter Industrien. 

Some key takeaways from the episode:

Denmark’s proximity to major European markets and multiple subsea cables make it an ideal hub for digital infrastructure. “Denmark is the region that has the closest proximity to central Europe, and is only a few milliseconds from London, Amsterdam, Frankfurt, Paris," says Kristinsson.

Denmark is pushing toward 100% renewable energy, including green biogas and innovative backup solutions, positioning its data centers at the forefront of sustainability. “Adding to wind and solar, we're also very big on green biogas. And this means that in our gas pipeline, close to 50% is actually green biogas. And by 2030, we expect to be close to 100%," says Hansen.

Danish enterprises expect their data center providers to deliver 100% renewable energy, making sustainability a competitive requirement. “The Danish enterprises' awareness around sustainability—it's a significant criteria in their decision-making process. It's not just an ask, it's kind of a demand that we supply 100% renewable energy in our data centers," says Hoffmann.

The presence of major hyperscalers has accelerated Denmark’s data center market, attracting global investment and creating a skilled workforce. As Hansen explains, “Ten years ago, we didn't have any data center capacity. The hyperscalers have accelerated the development because of the size of the investments they have made, and also because all of them basically decided to build in Denmark. It was a good signal to the surrounding world that this is an attractive market."

Denmark fosters digital infrastructure growth not through tax incentives, but by integrating industry into the country’s ambitious sustainability goals. Says Hansen: "The incentive is more really becoming part of this ambitious goal that we have for Denmark in general—about very ambitious emission targets, climate targets by 2030, reducing by 70%, which is above the normal targets in other countries and in the EU. We try to lift the bar of what is achievable."

Denmark is the site of pioneering circular energy use, with data center waste heat being repurposed for homes and novel projects like year-round tomato farming. "We have a contract with a company called WA3RM that is planning to reuse waste heat from the site to grow tomatoes. Not only does the heat not go wasted, but it reduces the carbon footprint of tomatoes grown in Denmark, since most of them are imported from more southern parts of Europe," says Krisinsson.

Denmark’s approach to sustainable digital infrastructure relies on collaboration, innovation, and ambitious climate targets—offering a model for other countries. “You have to bring a lot of different parties into the same room and decide on a strategy. You have to bring in various knowledge from different sectors because these things are going so fast now. We need other types of partnerships, other types of regulations, if we are going to do this AI and digital journey without killing our climate," says Hansen.