Norway reins in data centre industry amid AI boom

Norway's government said on Monday it will curb the rapid growth of power-hungry data centres, becoming the latest nation to limit a buildout driven by the global artificial intelligence industry, Reuters reported. Norwegian national grid operator Statnett temporarily halted reservations of connections for new data centres until a government licensing scheme is in place to manage the buildout. "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, according to Reuters.

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 artificial intelligence, 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 26,000 megawatts of new capacity so far this year, more than Norway's current capacity, with data centres accounting for 75% of requests, Reuters reported. 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.

According to shattered.io, about 4,200 MW of data-centre electricity consumption is already approved, roughly one-sixth of Norway's peak demand of about 25,000 MW. The reporting says the halt is temporary and tied to the licensing scheme. Statnett's suspension is expected to end no later than 1 August 2027, according to a reported government and Statnett statement cited by shattered.io. The proposed scheme is meant to include requirements on digital security, emergency preparedness and necessary AI-computing capacity, according to the reporting. Under the reported proposal, current data centres would have to apply for a licence and comply with the regulations. The licensing regime has not been enacted; what exists today is an announcement, a grid pause and a plan to consult, with the rest being design work that will take until autumn 2027 at the earliest, shattered.io reported.