The Thylander Group, a private equity real estate firm and asset manager, PensionDanmark, a Danish decentralized, labor-market pension fund, and Copenhagen Infrastructure Partners (CIP), a dedicated fund manager for greenfield renewable energy investments, through its CI Microgrid Electrification Fund have begun building a new data center at the NATO port in Esbjerg, Copenhagen, Denmark. The project, named Dansk Data Center 1 (DDC1), is supported by Danish investors and will connect its electricity use, energy storage, cooling and waste heat to the local energy system. The facility is planned to be one of Denmark’s largest data centers.
According to a press release, DDC1 will connect to the local electricity grid through grid operator N1, with a capacity of 11.5 MW. Plexar, which is part of the project, is supplying the data center’s energy management system. The system will allow electricity consumption to be adjusted according to available capacity on the power grid. Energy storage will also be used to support the facility’s operations and manage its electricity demand.
A groundbreaking ceremony was held Aug. 13, attended by Esbjerg Mayor Jesper Frost Rasmussen and representatives of the companies involved. Government and company senior representatives commented on the project development.
Jesper Frost Rasmussen, Mayor of Esbjerg Municipality, said, “I’ve been looking forward to welcoming DDC1 to Esbjerg. The project builds on the strengths we already have as EnergiMetropol, and it aligns with our ambition for Esbjerg to also be a digital hub. At the same time, DDC1 demonstrates how digital infrastructure can be integrated with solutions, utilities, and business development.”
Anders Frich Mathiesen, CEO, Thylander Data Centers, said, “Our ambition is not just to build a single data center, but to set a new standard for how data centers can be developed as an integral part of society.”
Karsten Uhd Plauborg, Partner at Copenhagen Infrastructure Partners and CEO Plexar, said, “From an infrastructure perspective, Esbjerg is one of the most important industrial hubs and a very business-friendly municipality. This makes the port an ideal location for a project like DDC1, which is built on strong local collaboration.”
Anders Saaby, CTO, Plexar, said, “In Denmark, a large proportion of electricity generation comes from renewable energy, and with intelligent management, we can ensure that the data center operates as efficiently as possible and makes the best possible use of the clean electricity. The goal is for the data center not to be a burden, but an active part of a more balanced energy system.”
Rune Gade Holm, Head of Private Markets, PensionDanmark, said, “Access to data centers is a key competitive factor and a prerequisite for realising AI growth. It is therefore natural for us to invest in Danish data center capacity for Danish businesses. PensionDanmark invests in digital infrastructure globally, so it makes sense for us to develop data capacity for Danish companies while we also get the opportunity to generate attractive returns on our members’ retirement savings.”
PensionDanmark is investing in DDC1 as part of its wider investments in digital infrastructure to increase domestic data center capacity while giving it exposure to the sector.
The developers are also working with utility company DIN Forsyning on plans to use excess heat from the data center in the local district heating system. The cooling system is designed as a closed loop in which water is reused, reducing the amount of fresh water needed for cooling.
Esbjerg places the data center alongside the city’s established energy and industrial infrastructure. The municipality has also been seeking to expand its role in digital infrastructure. The energy management system is intended to make it possible for the data center to vary its electricity consumption as conditions on the grid change.
The project comes as demand for data center capacity increases with the growth of artificial intelligence and digital services. The facility will provide capacity for Danish businesses while testing how data centers can be integrated more closely with local electricity and heating infrastructure.