Data Centers in Falun
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Falun – High Efficiency Infrastructure for Sustainable Scale
Executive Summary
Falun is a strategic choice for enterprises prioritizing sustainability and cost efficiency through carbon-neutral infrastructure. This market provides high-security environments and exceptionally low power costs, making it a premier destination for high-density compute and long-term data residency. Choosing this location allows operators to bypass the power constraints of larger European hubs while maintaining reliable access to the Nordic digital corridor.
Falun: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Stable performance with direct links to major Nordic hubs. |
| Direct Cloud On-Ramps | 0 – as of December 2025 | Nearest on-ramp hub is Stockholm. |
| Power Cost | €0.07/kWh – as of July 2025 | Low rates driven by 95% low-carbon energy mix. |
| Disaster Risk | Low (2.1/10) – as of December 2025 | Geologically stable region in Northern Europe. |
| Tax Incentives | Yes | Importers benefit from reduced customs duties or exemptions. |
| Sales Tax | 25% VAT – as of December 2025 | Standard Swedish rate applies to commercial services. |
Network & Connectivity Ecosystem
Falun serves as a stable node within the Scandinavian network landscape, offering reliable paths to the broader European ecosystem.
Carrier Density & Carrier Neutrality: Carrier count: ~5–10 carriers as of December 2025. The market maintains a neutral environment, allowing for competitive transit pricing and redundant fiber paths to Stockholm and Oslo. This neutrality ensures that enterprises are not locked into a single provider and can manage their network diversity effectively.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. As of December 2025, there are no local on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure. Connectivity to these providers is typically achieved via private line extensions to Stockholm hubs, which are roughly 230 kilometers away.
Internet Exchange Points (IXPs): Peering is primarily handled via regional exchanges or through the nearest national hub in Stockholm, ensuring low-latency access to the Nordic eyeball networks.
Bare Metal: Dedicated hardware solutions are available through providers like Latitude.sh or Hivelocity. These options support rapid deployment for workloads requiring physical isolation without the overhead of managing a full colocation suite.
Power Analysis
The power profile in Falun is its strongest selling point for industrial-scale compute.
Average Cost Of Power: Industrial electricity is priced at €0.07/kWh, as of July 2025. These low rates significantly reduce the total cost of ownership for high-density colocation compared to Central European markets. The energy mix is approximately 95% low-carbon, utilizing hydro, nuclear, and wind power.
Power Grid Reliability: The local grid is reliable and supported by redundant high-voltage substations. It is engineered to handle the specific demands of large-scale infrastructure without interruption, providing a sturdy foundation for 24/7 operations.
Market Access, Business & Tax Climate
Falun offers a stable environment for businesses looking to scale within the Swedish market.
Proximity To Key Business Districts: Data centers here are located near regional industrial centers and are within a three-hour drive of Stockholm. This allows for easy physical access for maintenance and site audits while maintaining a safe distance from capital-city congestion.
Regional Market Reach: From this location, providers can serve the entire Nordic population with sub-15ms latency. This reach covers millions of consumers across Sweden, Norway, and Finland, making it a central point for regional distribution.
Tax Advantage For Data Centers: Importers of IT hardware can leverage general customs duty reductions or exemptions. This helps lower the initial capital expenditure for deploying new server fleets and infrastructure.
Natural Disaster Risk
The regional risk profile is categorized as Low (2.1/10) as of December 2025. The geography is characterized by its stability and lack of seismic activity.
- River Flood (6.3/10): This is the primary concern, though facility placement in elevated corridors mitigates most local risk.
- Coastal Flood (5.8/10): This is considered a regional or indirect risk as Falun is an inland city.
- Drought (1.3/10): Minimal impact on operations and cooling efficiency.
- Earthquake (0.1/10): Seismic activity is statistically negligible for this region.
Other natural hazards like tropical cyclones and tsunamis are not applicable to this inland geography. All other risks are considered minor as of December 2025.
