This is more than adding capacity. It’s about building a stronger, more distributed cloud backbone for Denmark and the rest of Europe.
PRESS RELEASE
Esbjerg, Denmark - December 11, 2025
Cloud Factory, a leading Microsoft Cloud Distributor, welcomes Microsoft’s announcement to build three new datacenters in Western Denmark.
The investment marks a major milestone for Denmark’s digital infrastructure and positions the Esbjerg and Varde region as a key technology hub for Scandinavia.
Microsoft’s decision to expand beyond its initial datacenter region near Copenhagen ensures true national coverage, improved resilience, and low-latency access to cloud services.
For Cloud Factory and its Managed Service Provider (MSP) partners, this means faster, more reliable access to Microsoft Cloud solutions like Azure and AI - powered by renewable energy.
- For our partners, it means local performance, compliance, and sustainability they can take straight to their customers, says Jacob V. Schaumann Schmidt, Chief Executive Officer at Cloud Factory.
The Esbjerg and Varde area already serves as Denmark’s energy capital with unique access to North Sea renewables and international fiber routes.
Microsoft’s investment reinforces the region’s role as a digital gateway for Northern Europe and strengthens Denmark’s position in the global cloud ecosystem.
Operational advantages for MSPs
The new datacenters will enable Cloud Factory partners to deliver:
Low-latency, high-availability services backed by local infrastructure
Compliance and data residency for regulated industries
Sustainable cloud solutions powered by renewable energy and heat recovery systems
Sovereign cloud matters
Beyond compliance, sovereign cloud is about trust, control, and AI guardrails. Local Microsoft regions help MSPs:
- Keep data within defined European boundaries for residency and jurisdiction.
- Limit access to approved personnel and processes for sensitive workloads.
- Run AI responsibly with clear data flows, auditability, and transparency.
- Sovereign cloud is top of mind for our partners. With local regions, MSPs can run AI with clear data boundaries and EU control, says Michael Haagen Jensen, Chief Operating Officer at Cloud Factory.
Cloud Factory will work closely with Microsoft and local stakeholders to help MSPs leverage this infrastructure for accelerated cloud adoption among Danish SMEs and beyond.
The Standard
To all MSPs wondering what makes us different
MSPs are stuck with outdated platforms to deal with new and constantly evolving cloud solutions. We are here to challenge business as usual in cloud distribution – giving MSPs the time to grow their business.