Norway reins in data centre industry amid AI boom
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Recent projections show that demand from new data centres could lead to an energy deficit in Norway in the coming years.
PHOTO: REUTERS
- Norway will curb fast growth of power-hungry data centres as AI demand rises, to avoid an energy deficit and higher electricity prices.
- Statnett has stopped new connection reservations until a licensing scheme is ready. The plan will favour defence, health and other critical services.
- The government said data centres made up 75% of 26,000 megawatts of connection requests. New centres may face grid costs and build their own power plants.
AI generated
OSLO – Norway’s government said on Nov 9 that it will curb the rapid growth of power-hungry data centres in the Nordic country, becoming the latest nation to limit a build-out driven by the global artificial intelligence industry.
Norway produces more power than it consumes and is a net exporter, but recent projections show that demand from new data centres could lead to an energy deficit and rising electricity prices in the coming years.
The rapid growth of data centres is meeting resistance in many countries, as seen in the recent US midterm elections, with critics saying that the industry provides few jobs and pushes up power prices.
Norwegian national grid operator Statnett on Nov 9 temporarily halted reservations of connections for new data centres until a government licensing scheme is in place to manage the build-out.
“The purpose is to gain more control over the growth of data centres, and ensure that we get the data centres we actually need,” Minister of Digitalisation and Public Governance Torgeir Micaelsen told a press conference.
The licensing scheme will favour data centres that serve defence, police and emergency preparedness, health services and other critical infrastructure such as the mobile network and the financial system, Micaelsen said.
While Norway wants to support the national need for AI, it will restrict the access to land and electricity for global cloud companies or cryptocurrency firms, he added.
Energy Minister Terje Aasland said Statnett had received connection applications for 26,000MW of new capacity so far in 2026, more than Norway’s current capacity, with data centres accounting for 75% of requests.
New data centres should pay for costs incurred by the grid, and may be asked to build gas-fired power plants, including carbon capture and storage, to provide their own electricity, the government said. REUTERS