Swedish data center operator EcoDataCenter has secured €450 million ($521 million) in new funding from its owner, Nordic investment firm Areim. EcoDataCenter will use the new capital to grow its operations. This includes building a new 150MW data center campus in Östersund, Sweden.
The investment shows that more companies want sustainable data infrastructure. They are looking for greener solutions for their digital operations.
A Major Step in Sustainable Data Center Growth
The newly raised capital is part of Areim’s dedicated data center fund, the Areim DC Fund, which has now reached a total of €900 million ($977 million). The fund was oversubscribed and drew in Nordic and international institutional investors. This boosts EcoDataCenter’s status as a leader in green data center development.
EcoDataCenter has aimed to build top-notch, eco-friendly data centers since its inception in 2015. The company opened its first facility in Falun in 2019. Since then, it has expanded to several locations in Sweden.
EcoDataCenter is fully owned by the Areim DC Fund as of 2023, following a series of strategic mergers and acquisitions.
Nordic Green Tech Gets a Boost: A Game Changer
With the latest round of funding, EcoDataCenter plans to expand its presence in the Nordic region. The company currently operates 5 data centers across three locations:
- Falun,
- Piteå, and
- Stockholm.
Now, it is developing a new mega-campus in Östersund, which will provide an additional 150MW of capacity. It is among the lowest carbon-intense grids in the world, with just 15g CO2eq/kWh. Watch the video below to learn more about this massive green data center development.
This big expansion responds to the growing need for sustainable digital infrastructure. The campus will be built in phases, with the first 20 MW expected to be completed by 2026.
The company just signed a hosting deal with GPU cloud provider CoreWeave. This shows its strong commitment to AI and high-performance computing (HPC) applications.
More Than Just Storage: Green Future of Data Centers
Data centers play a critical role in today’s digital world, powering everything from cloud computing to streaming media. However, their rapid growth comes with environmental concerns due to high energy consumption and carbon emissions.
By 2030, data centers could contribute up to 2.5 billion metric tons of CO₂ emissions annually, per a Morgan Stanley report. Goldman Sachs also has similar projections for data center power requirements, as shown below.
Sweden‘s data center market is growing fast, expected to reach $2.73 billion by 2029. With major players like Microsoft, Oracle, and Amazon Web Services investing in Swedish facilities, local firms like EcoDataCenter and Evroc are also expanding their presence.
The Swedish government aims for carbon neutrality by 2045, influencing data center operations to prioritize sustainability.
One of the key drivers behind Sweden’s growing data center market is its abundant renewable energy supply. The country generates over 98% of its electricity from low-carbon sources, including hydropower, wind, and nuclear energy. This clean energy mix makes Sweden an attractive destination for data center operators looking to reduce their carbon footprint.
EcoDataCenter is at the forefront of addressing this challenge. Its facilities use cutting-edge technology and renewable energy sources to reduce their carbon footprint. The company blends energy efficiency with sustainability. This makes it a top choice for businesses seeking eco-friendly data solutions.
- The company is leading the charge in sustainable data center operations by leveraging 100% renewable electricity. This is primarily sourced from hydropower (75%) and wind (25%).
Moreover, the company has significantly reduced carbon emissions by using wood-based construction. This approach cuts embodied carbon by nearly two-thirds compared to traditional materials. Its innovative waste heat recovery systems also help avoid emissions while supporting local district heating.
Notably, EcoDataCenter’s Scope 1 emissions totaled 160 tonnes CO₂e. This comes mainly from backup diesel generator tests, while Scope 2 market-based emissions were just 1 tonne CO₂e due to its use of 100% renewable electricity. Scope 3 emissions account for 98% of the company’s total emissions.
EcoDataCenter 2023 GHG Emissions
The company also reduced refrigerant-related emissions to 0.84 tonnes CO₂e and aims to be 99% fossil-free by 2028. These efforts position EcoDataCenter as a frontrunner in climate-conscious digital infrastructure.
Areim and EcoDataCenter have raised about €1.2 billion ($1.3 billion) in funding in the last two years. This shows that investors have strong confidence in the company’s strategy.
Peter Michelson, CEO of EcoDataCenter, remarked:
“We are establishing one of the most exciting companies in the Nordics…Through our platform, we have formed partnerships with some of the world’s leading companies, which reinforces investor trust in what we do.”
AI, Cloud & Carbon Cut
EcoDataCenter’s focus on sustainability has attracted major industry players. In 2024, the company partnered with AI hyperscaler CoreWeave to build one of Europe’s largest AI clusters in Falun.
Soon after, EcoDataCenter quickly locked in a new mega site. This site has over 240MW of capacity. It will help expand their data center operations even more.
Leif Andersson, founder of Areim and Chairman of EcoDataCenter, emphasized the significance of this investment:
“It is a strong confirmation of our ability to raise capital of this scale. We will continue to drive the market for how digital infrastructure should be built together with our customers…”
The Role of Carbon Credits and Energy Efficiency
The data center industry is under increasing pressure to reduce its environmental impact. As global data usage grows, so does the need for efficient and sustainable data storage solutions.
Beyond energy efficiency, carbon credits have emerged as a key tool for data centers seeking to balance their emissions. Tech giants like Microsoft are investing in carbon credits to offset their emissions. For instance, Microsoft has partnered with Brazilian start-up Re.green to restore parts of the Amazon and Atlantic forests.
The tech giant has a 25-year deal to buy 3.5 million carbon credits. This plan is valued at around $200 million. It’s part of a larger effort to lessen the environmental impact of its AI-powered data centers.
Also, companies like Google and Equinix are finding ways to reuse heat from data centers. They aim to warm nearby homes and businesses. Google’s Finland facility, for example, supplies heat to 80% of local households.
Marathon Digital Holdings is investing in heat recovery solutions in Finland. Equinix is doing the same in Paris.
Challenges and Future Outlook
Even with progress in green technology, data centers struggle to balance energy needs and sustainability goals. The industry must keep innovating. Focus on areas like renewable energy integration, better cooling techniques, and carbon offsetting strategies.
Collaboration between industry stakeholders, governments, and communities will be essential to drive the transition toward sustainable digital infrastructure.
The data center industry’s commitment to sustainability is evident through initiatives like EcoDataCenter’s expansion, Microsoft’s carbon offset programs, and innovative energy efficiency measures. As digital infrastructure grows, using sustainable practices is vital. It helps reduce environmental harm and supports global climate goals.
With strong financial backing and a clear vision for sustainable growth, EcoDataCenter is set to redefine how data centers operate. Its growth will meet the rising demand for cloud and AI computing. It will also set new standards for environmental responsibility in the industry.
