Nordic enterprises are increasingly investing in hybrid and multicloud environments, optimizing flexibility, scalability, cost and compliance, according to a new research report published by Information Services Group (ISG), a global AI-centered technology research and advisory firm.

Renewable energy in the Nordics costs up to 50 percent less than the European average. This is a significant catalyst for ongoing investment in data center expansion and outsourcing in the region.

The 2025 ISG Provider Lens Private/Hybrid Cloud — Data Center Services report for the Nordics highlights environmental sustainability as a key focus for Nordic companies’ data center strategies, which emphasize renewable energy and efficiency. Enterprises are taking advantage of the region’s abundant green energy production while deploying innovations such as cooling systems enhanced with AI.

AI Authority Trend: ISG Report: U.K. Enterprises Transform Networks with SDN, Cloud

“Renewable energy in the Nordics costs up to 50 percent less than the European average,” said Rakesh Parameshwara, ISG lead for Banking, Financial and Insurance in the U.K., Ireland and Nordics. “This is a significant catalyst for ongoing investment in data center expansion and outsourcing.”

Cloud platforms ease AI integration, enabling Nordic enterprises to deploy generative AI tools and large language models to enhance operations. To meet the rising demand for real-time data processing and manage the influx of IoT devices, companies also are embracing edge computing infrastructure. This approach helps them handle advanced AI workloads and carry out digital transformation initiatives.

Nordic enterprises are looking to hybrid clouds to integrate on-premises infrastructure with public and private cloud environments. This approach enhances operational efficiency by securing critical workloads and optimizes costs through on-demand services. Firms are also leveraging multicloud services to integrate offerings from multiple vendors, reducing the risk of vendor lock-in.

Providers that excel in advanced automation and orchestration to efficiently manage hybrid environments are in high demand in the region. Nordic enterprises are prioritizing innovation and digital transformation, focusing on cybersecurity, talent development and collaboration with technology partners. They are capitalizing on the robust regional connectivity and proximity to European hubs to optimize latency-sensitive applications using edge computing.

Nordic enterprises are also adopting comprehensive data strategies and ethical AI deployment to address siloed data and governance challenges. In these initiatives, they are working to ensure security and compliance with robust AI regulatory frameworks. Hybrid cloud deployment for AI is most common in the region’s finance, healthcare and public sectors.

AI Authority Trend: ISG Report: Hybrid, Multicloud Strategies Gain Traction in U.K.

“Nordic firms are embracing hybrid and edge computing to enhance AI capabilities and manage real-time data,” said Meenakshi Srivastava, lead analyst, ISG Provider Lens Research, and lead author of the report. “This strategy improves their ability to manage complex AI tasks and supports expansive digital transformation efforts.”

The report also explores other cloud trends in the Nordics, including the growing use of scalable, high-density infrastructure options offered by colocation providers and the rise of hyperscaler partnerships for integrated offerings.

The 2025 ISG Provider Lens Private/Hybrid Cloud — Data Center Services report for the Nordics evaluates the capabilities of 60 providers across five quadrants: Managed Services — Large Accounts, Managed Services — Midmarket, Managed Hosting, Colocation Services and AI-Ready Infrastructure Consulting.

The report names Orange Business as a Leader in four quadrants. It names Kyndryl and Tietoevry as Leaders in three quadrants each. Accenture, Atea, Capgemini, CGI, Fujitsu, LTIMindtree, Sopra Steria, TCS and Wipro are named as Leaders in two quadrants each. The report names atNorth, Bulk Infrastructure, Cognizant, Digital Realty, DXC Technology, Equinix, Green Mountain, HCLTech, Infosys, STACK Infrastructure and Tech Mahindra as Leaders in one quadrant each.

In addition, GleSYS, Infosys and Sopra Steria are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2025 among private/hybrid cloud and data center service providers. Persistent Systems earned the highest customer satisfaction scores in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence program, the premier quality recognition for the technology and business services industry.

AI Authority Trend: ISG Report: U.S. Public Agencies Embrace Hybrid Cloud Managed Services for IT Modernization

Source – businesswire

To share your insights, please write to us at sudipto@intentamplify.com