The Danish IT sector is experiencing unprecedented growth, driven by the desire to secure Danish and European alternatives to American tech giants. In the first quarter of the year, the sector’s turnover reached 84.7 billion kroner, a 7.8 percent increase compared to the same period last year.

The surge is particularly noticeable in information services, including cloud computing, data processing, and web hosting, which saw a remarkable 48.3 percent increase in sales and an 84.2 percent rise in exports. This growth is attributed to the uncertain geopolitical situation and a heightened focus on digital sovereignty within the EU and Denmark.

According to Natasha Friis Saxberg, CEO of IT-Branchen, companies are increasingly seeking Danish products due to fears of losing access to data, especially with Donald Trump’s return to power in the USA. The concern is that Trump might issue a presidential decree forcing American tech giants to cut off access to data for European companies and individuals.

The Danish IT sector’s exports also continue to rise, increasing by 11.6 percent in Q1 to 30.1 billion kroner, surpassing the overall Danish business export growth of 4.5 percent. This success is attributed to the sector’s reputation for high quality and strong data protection measures.

While IT consultants still represent the largest sales area with 32.1 billion kroner, followed by wholesale of IT equipment at 28.1 billion kroner and telecommunications at 13.1 billion kroner, the sector anticipates further growth due to favorable economic conditions and falling inflation, leading to increased investments in IT projects across various sectors like health, transport, and green transition.

However, the sector faces challenges in securing qualified labor, which could drive up wages and potentially hinder sales. There were 106,463 full-time employees in the Danish IT sector at the beginning of the year, but projections indicate a shortage of 20,400 candidates with technical and scientific education by 2040.