"All the value that IT creates in the entire economy today rests on data centers"

Data Data Center Digitization
Data centres play a significant role in the digitalization of Sweden, both for society and business. The increasing demand for processing power and cloud storage is a trend that has accelerated and an increasing part of our lives includes elements where data must be processed and stored. Data centers are a prerequisite for much of what we take for granted today to work. 

This was stated during a webinar wherer reportthe 'Data Centers in Sweden 2020-2025' from Radar Ecosystem was presented.

-"We are in the midst of a major societal change where great digital steps have been taken, but the fact is that a large part of digitization lies ahead of us with its social benefits and economic value," said Christina Ramm-Ericson, Head of Industrial Policy. IT&Telecom companies.

She pointed out that a well-functioning data centre industry is a cornerstone of digitalization-driven growth. Something that does not only concern the data center industry or IT departmentbut is central to all core business. This view was also confirmed by report author Hans Werner:

-"Basically, it's about an infrastructure where we have all communication and all networks. Above that is the layer of data centers and on data centers rests all the services and all the value creation that IT today creates in our entire economy. It's not just about the new economy, but also the traditional one. All IT passes through a data center in one way or another today.

Today there is a great demand for energy-efficient data centers and here Sweden attracts foreign companies with a cold climate and low climate impact with virtually fossil-free electricity. There is also a lower risk of natural disasters and a stable political climate.

-Data centers generate jobs not only directly, but also indirectly with the ancillary services created. It can also have spin-off effects through the emergence of start-up companies. It also puts Sweden on the map as a tech-cluster, said Christina Ramm-Ericson.

Data centers were highlighted as increasingly important for Sweden's competitiveness, which is largely based on the adoption of new technologies andtaking advantage of developments. There are challenges, for example regarding energy supply but also regarding good conditions for companies to establish themselves and operate in Sweden. Another challenge that was raised is the major skills shortage.

-It is extremely important to address the skills situation. Something that the data center industry shares with the entire IT industry. We have a great need for skills in the entire IT area. A problem that we have had and that has been known for a long time and we see few initiatives to solve it. The entire skills transition needed is on par with 2.5 times the shipyard conversion program that Sweden went through in the 60sand 70s. This is something that threatens our ability to utilize technology to its full value," said Hans Werner.

Watch the webinar where the report is presented and the subsequent panel discussion here

About the report:
Radar Ecosystem's report highlights the role of data centers in the digitalization of Sweden and maps the industry from relevant perspectives, focusing on commercial and geographical spread, market potential, drivers, growth and current challenges and barriers. The report includes analysis of electricity use, installed capacity, energy and tax issues and sustainability perspectives. Read more at radar.se