Swedish Scandinavian Data Centers Raises Funding To Launch More Energy Efficient Data Facility

The centre will be built inside a former World War II mountain bunker and will become a 10 MW high-security facility. It will also use circular energy systems and reuse heat to support the local community.

This project is part of Sweden’s effort to grow its digital infrastructure in a way that supports both sustainability and society, especially as data centres use more energy due to the rising demands of AI technology.

“Balder’s investment accelerates the development of our data center and shows how digital infrastructure can be both future-proof and socially beneficial,” said Svante Horn, CEO and co-founder of SDC. “Everything is in place for us to deliver a high-security facility where waste heat from operations is recovered and fed into the local district heating network.”

The 7,000-square-meter data centre is located in a former military bunker, offering strong natural protection. It's designed for customers like government agencies, banks, and critical infrastructure providers that need high security and reliable service.

But the facility is more than just secure it's also built to be environmentally friendly. SDC's model combines data centres with battery energy storage and heat recovery systems. This means the heat produced by the data centre won’t go to waste but will instead be used to warm local homes.

In its first phase, ScandiDC I is expected to recover up to 10 MW of heat — enough to heat about 6,000 homes each year through Eskilstuna’s city heating network, run by Eskilstuna Energi & Miljö.

Local officials have praised the project for supporting both green energy goals and the region’s digital infrastructure.

“This initiative strengthens Eskilstuna’s position as Sweden’s most environmentally progressive municipality and a pioneer in sustainable development,” said Jimmy Jansson, Chairman of the Municipal Executive Board. “Scandinavian Data Centers adds a climate-smart and local heat source, aligning perfectly with our vision of a circular and resource-efficient future.”

Data centres already use about 3% of the world’s electricity, and that number is expected to rise as AI continues to grow. This makes it more important than ever to build data centres that are efficient and environmentally friendly.

Most companies focus on packing in as much computing power as possible while trying to save energy on the tech side. SDC takes a different approach — they design their data centres based on how much waste heat the local area can reuse, turning excess heat into a useful resource.

“As the use of AI grows and its energy needs expand, it’s essential to build facilities that use energy efficiently and contribute to both power and heat supply in a circular energy system,” said Horn. “Our ambition is to create cutting-edge data centers with the highest standards in security, sustainability, and close cooperation with municipalities and local communities.”

Sweden is becoming a popular location for eco-friendly data centres thanks to its strong supply of renewable energy, cool climate, and advanced digital infrastructure. SDC is joining other local companies like EcoDataCenter, Bahnhof, and Northvolt, which are leading the way in using circular economy models to make energy-heavy industries more sustainable.

SDC was founded in 2021 by Svante Horn, Simon Angeldorff, David Malmström, and Jascha Buckholt. Their goal is to build data centres that are closely connected to local communities and bring the most benefit for every megawatt of energy used.

As Europe works to bring computing power closer to home and reduce carbon emissions, projects like ScandiDC I could be a model for the future—combining strong security with smart, circular use of energy. It’s a way to turn old military bunkers into high-tech hubs for tomorrow’s digital world.

About Scandinavian Data Centers (SDC)

Scandinavian Data Centers (SDC) is a company that builds eco-friendly and reliable data centres, mainly in Sweden. Their goal is to combine data storage, energy-saving technology, and heat reuse to create a circular system that’s better for the environment.