Nordic enterprises are adopting private and hybrid cloud infrastructure that combines AI-ready capacity, local residency and low-carbon operations as high-performance workloads and geopolitical risk reshape IT strategies, according to a new research report published by Information Services Group (ISG), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens Private/Hybrid Cloud Data Centre Services report for the Nordics finds that the region is evolving from a hosting destination into a backbone for European data processing. Enterprises are using the Nordics’ renewable energy and natural cooling to support cloud strategies that balance large scale with environmental consciousness and compliance with data sovereignty regulations.

“Nordic enterprises are connecting infrastructure decisions to resilience, data control and sustainability rather than treating cloud as a capacity purchase,” said Susanta Dey, director, ISG EMEA Cloud and Tech Modernisation Practice. “As AI operations require more energy and tighter governance, they are looking for hybrid environments that can scale without weakening sovereignty or environmental commitments.”

Sustainability has become central to infrastructure sourcing in the Nordics as enterprises move beyond power usage effectiveness to require heat reuse, renewable energy and closer integration with local energy systems. Metropolitan areas such as Stockholm and Helsinki are mandating that data centres contribute to district heating, making energy circularity an important consideration for AI and high-performance computing workloads.

Digital sovereignty is also reshaping Nordic cloud strategies. Enterprises are seeking Nordic-only cloud instances and stronger assurances that sensitive data, operations and controls remain within the European Economic Area. These requirements reflect concerns about international data access laws and regional security risks, especially for regulated sectors that need resilient facilities and clear jurisdictional control.

Nordic enterprises are also reassessing how they manage infrastructure complexity as AI and generative AI become more widely used. Buyers seek providers that can move GenAI from pilots into industrial-scale operations with measurable outcomes. At the same time, an ongoing regional talent shortage is expected to increase adoption of agentic AI for IT operations (AIOps) to automate processes, maximising the efficiency of IT teams, ISG says.

“The Nordics are becoming a proving ground for infrastructure that is sustainable, sovereign and AI-ready,” said Meenakshi Srivastava, ISG lead analyst and lead author of the report. “Providers that combine local operating knowledge, automation and high-density capacity will be most useful to enterprises balancing performance with control.”