Microsoft is planning to launch a cloud region in Denmark in 2026.

As shared by the Danish Data Center Industry (DDI), the new region, dubbed Denmark East, will be housed in data centers across the country, including new projects in the municipalities of Esbjerg and Varde.

The exact value of the investment being made into Denmark has not been stated, but DDI CEO Henrik Hansen said in a LinkedIn post that it was a “multi-billion dollar investment.”

Mette Kaagaard, CEO of Microsoft Denmark and Iceland, said: “This investment is more than a data center. It reflects the strong momentum in Denmark’s digital and energy ecosystem. By expanding here, we are building essential cloud infrastructure while strengthening local partnerships and supporting the long-term growth of the Varde and Esbjerg region.”

Stephanie Lose, Minister of Economic Affairs, added: “I am very pleased when large companies as Microsoft choose to make significant investments in Denmark and help create new jobs. I am confident that this new data center region in the municipalities of Esbjerg and Varde can help develop West Denmark and contribute to growth, new jobs, and even greater progress.”

Details about the data centers have not been shared.

Microsoft first announced its intentions to enter Denmark in late 2020 and has since signed PPAs and backed carbon capture projects in the country. In 2024, Microsoft revealed that a data center it was developing in Høje-Taastrup would offer its waste heat to local homes.

Microsoft has been open about having data center projects in the capital area and Zealand in Denmark, on the other side of the country. Those data centers are also part of the Denmark East region.

The new cloud region will see all of its energy consumption matched with 100 percent carbon-free energy through long-term PPAs.

Google has a data center in Fredericia, Denmark, while Amazon Web Services operates a Local Zone in Copenhagen.