The new data center in the small city of Fredericia will cost $689 million and employ 150 to 200 staff once completed in 2021, according to the plans.
The search engine outfit is to sign a power purchase agreement (PPA) for the new Danish data centre to ensure it is powered by renewable energy.
The Nordic countries, which can generate electricity relatively cheaply from renewable sources such as hydropower and wind, have long been a magnet for heavy power-using industries, but are now attracting power-hungry data centres.
Meanwhile the Danes, who once owned most of the United Kingdom, are expecting annual investment in Nordic data centers could double to more than four billion euro ($4.57 billion) by 2025.
A new study published by the Nordic Council of Ministers, the official body for regional cooperation, said big companies have rushed to secure cheap renewable energy to manage costs and reduce their carbon footprint through corporate PPAs which allow firms such as Google, owned by Alphabet, Facebook and Microsoft to buy directly from energy generators.
While the Nordics are still perceived as less connected than these markets, the region is likely to gain market share, the Council of Ministers’ study said.
This is partly due to the region’s plentiful renewable energy and political stability while the planned installation of major fibre optic links to North America and Asia will improve connectivity.
Google said it is also evaluating investments in a number of onshore and offshore wind and solar energy projects in Denmark.