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Nordic enterprises are increasingly adopting hybrid and multicloud strategies to drive digital transformation, enhance AI capabilities, and meet sustainability goals, according to the 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report for the Nordics, published on July 23, 2025. The region’s focus on renewable energy and advanced cloud infrastructure is fueling innovation and operational efficiency.
The Nordics’ abundant renewable energy, costing up to 50% less than the European average, is a key driver for data center expansion, as noted by Rakesh Parameshwara, ISG lead for Banking, Financial, and Insurance. “This is a significant catalyst for ongoing investment in data center expansion and outsourcing,” he said. Enterprises are deploying AI-enhanced cooling systems and partnering with providers like Equinix and Green Mountain to optimize energy-efficient infrastructure, aligning with regional sustainability goals.
Nordic companies are integrating on-premises infrastructure with public and private clouds to enhance AI capabilities, particularly in finance, healthcare, and public sectors. “Nordic firms are embracing hybrid and edge computing to enhance AI capabilities and manage real-time data,” said Meenakshi Srivastava, ISG lead analyst. Hybrid clouds secure critical workloads, while multicloud strategies reduce vendor lock-in, with 78% of enterprises citing flexibility as a top priority, per ISG data. Edge computing supports IoT and real-time processing for advanced AI workloads.
With 83% of Nordic enterprises prioritizing cybersecurity, providers like Orange Business, Kyndryl, and Tietoevry lead in delivering automated, secure hybrid cloud solutions. The report highlights robust AI regulatory frameworks and ethical AI deployment to address data silos and governance challenges. Comprehensive data strategies ensure compliance with GDPR and local regulations, critical for 92% of surveyed firms in finance and healthcare.
The ISG report evaluates 60 providers, naming Orange Business a Leader in four quadrants, Kyndryl and Tietoevry in three, and others like Accenture and Equinix in one or two. Rising Stars like GleSYS and Infosys show promise in AI-ready infrastructure. Nordic firms are also leveraging hyperscaler partnerships and colocation services from providers like Digital Realty to support scalable, high-density infrastructure, with 65% of enterprises planning increased cloud investments by 2026.
Nordic enterprises are harnessing hybrid and multicloud strategies to drive AI innovation, sustainability, and compliance. With cost-effective renewable energy and advanced cloud solutions, the region is poised to lead in digital transformation and ethical AI deployment.
The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future.
ISG is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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