Builders of datacentres in Norway prioritize energy efficiency

Norway’s datacentre industry is undergoing significant changes due to the end of tax breaks and increased focus on energy efficiency. More companies are now investing in smaller, energy-efficient facilities in anticipation of potential taxation changes after the 2025 parliamentary elections.

The Centre and Liberal parties, popular among voters, have expressed concerns about energy efficiency and power usage in datacentres. While they support attracting international investments, they prefer environmentally friendly facilities. This political messaging has influenced major industry players, leading to the establishment of Skygard, a joint venture between Hafslund, Telenor, HitecVision, and Analysys Mason Nordic.

The consortium plans to invest €210m in building energy-efficient datacentres, starting with one in Oslo’s Hovinbyen district. Telenor’s partnership with Nvidia will help provide advanced and secure solutions at these facilities. Other companies like Eidsiva are also entering the secure storage datacentre market.

The transition to more energy-efficient facilities gained momentum in 2023 when tax breaks for power-intensive industries were removed. The industry is seeing growth from global players like Microsoft and Google, who are investing in new datacentres in Norway. However, concerns about waste heat from these facilities are leading to calls for better integration with industrial centres.

The Norwegian government is considering amendments to the Energy Act to address concerns about energy usage in datacentres, particularly regarding the utilization of surplus heat. Overall, the industry is adapting to new regulations and focusing on sustainability to secure its future growth.

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