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Microsoft will build three data centers in West Jutland and establish a so-called data center region. (Archive photo).
Audrey Richardson/Reuters

Microsoft to build three additional data centers in Denmark

Microsoft will build three data centers in Varde and Esbjerg, which will be closely connected to the entire European power grid. The investment is the company's largest ever in Denmark.
11. DEC 2025 7.04
Erhverv
IT
Plan & Byg

VARDE / ESBJERG: Microsoft will establish a new so-called data center region in Denmark. This time in West Jutland.

This means that the company will build data centers at three locations in Varde and Esbjerg Municipality. Microsoft Denmark writes in a press release.

According to the company, this is a double-digit billion investment, which is the largest in the company's 36-year history in Denmark. Microsoft does not disclose the exact amount of the investment.

According to Mette Kaagaard, CEO of Microsoft Denmark and Iceland, the investment emphasizes Microsoft's commitment to Denmark.

- It is not just about new data centers, but about developing and driving innovation and ensuring a more competitive and robust digital infrastructure - in close collaboration with our Danish partners and with strong local support in Esbjerg and Varde Municipality, she says in the press release.

Many new jobs

During construction, it is expected that the construction will employ up to 1200 to 1400 people at each of the three locations at peak times.

When the data centers are completed, there are expected to be around 500 permanent jobs for ongoing operations.

The plan includes three data centers: two in Varde Municipality and one in Esbjerg Municipality. The landowners in the affected project areas have been informed, and the publication opens up a broader dialogue with neighbors and local communities as the project is fleshed out, informs Varde Municipality. 

According to the municipality, the west coast of Jutland is already an important digital hub. Several of Europe's central submarine fiber cables land here, and with the Danish Energy Agency's recent tender for three new offshore wind farms, two of which are in the North Sea, the region is becoming even more attractive to the data-driven industry.

- Varde Municipality has a unique connection to the entire European energy grid, and we have an ambition to attract new industries that contribute to growth and development. The fact that international companies like Microsoft are now looking in our direction and want to invest in data centers with us shows that our strategic focus on attracting energy-intensive companies - and thus jobs - is working, says Mayor Mads Sørensen (V).

The two planned locations in Varde will be approximately 150 hectares on Ringkøbingvej north of Tinghøj and approximately 79 hectares on Kastkærvej between Lunde and Nørre Nebel.

Also three centers on Zealand

Microsoft plans to increase Europe's data center capacity by 40 percent by 2027. This means that by the end of 2026, Microsoft will have 200 data centers across Europe, the company has previously announced.

Today, Microsoft employs almost 1,000 employees in Denmark.

Microsoft has previously announced that the company will create a data center region on Zealand, which will consist of three data centers.

On its website, Microsoft explains that a data center region is a cluster of data centers located in a defined area. According to the company, this provides robust data storage because the physical separation protects data from problems in the individual data center.

 

/ritzau/ak

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