Data centres constitute one of the fastest-growing power consuming industries globally. This is also the case in Norway. Overall demand for electricity and grid capacity significantly exceeds what is realistically possible for the Norwegian power system to accommodate. At the same time, data centres are essential to meeting society’s need for digital infrastructure. They are also indispensable for the safe and secure development and use of artificial intelligence.

— Data centres are part of our critical infrastructure. They contribute to value creation, secure digital services and greater digital independence for Norway. However, we have made it clear that we do not want all types of data centres in Norway. We need data centres that are as beneficial to society as possible. This is why the Government is initiating work on a licensing regime that will establish requirements and conditions for the establishment and operation of data centres, says Minister of Digitalisation and Public Governance Torgeir Micaelsen.

The Government intends to introduce a licensing regime for both existing and future data centres, supported by robust transitional arrangements. It will also consider whether other forms of regulation may be appropriate. The Government intends to present the main principles of a licensing regime in the autumn 2027.

— We are enabling more and faster development of power and grid infrastructure, but it is not desirable or possible to accommodate the electricity demand from alle the data centres seeking to establish in Norway. We must ensure sufficient power is available, in the right locations, for purposes that serve the public interest. That is why we are taking action now, says Minister of Energy Terje Aasland.

A very large number of data centres are seeking grid connections in Norway. According to Statnett, data centres with a combined power demand of 800 megawatts (MW) have already been connected to the grid, 4,200 MW have been granted reserved grid capacity, and 9,100 MW are currently in the connection queue. In addition, requests have been submitted for a further 18,000 MW of capacity. By comparison, Norway’s peak electricity demand is just over 25,000 MW.

A sharp increase in the number of data centres also creates challenges for the power system and electricity supply, including that they may be associated with large and rapid fluctuations in power demand. Statnett has therefore decided on a temporary suspension of new reservations of grid capacity for data centres, which is expected to be lifted no later than 1st of August 2027 (see Statnett press release).

How the Government will ensure the controlled growth of public-interest data centres in Norway

  • Introduce a licensing regime: The Government intends to introduce a licensing regime for the establishment and operation of data centres in Norway.
    • Requirements and conditions that support digital security and preparedness, and that contribute to the availability of AI computing capacity in Norway, the Nordic region and Europe, will be considered.
    • Data centres engaged in cryptocurrency-related activities will not be regarded as beneficial to society.
    • The Government will ensure robust transitional arrangements that provide predictability for both existing and future data centre operators in Norway.
  • Establish requirements for responsible grid connection: The Ministry of Energy will soon introduce the necessary regulatory amendments to enable Statnett to impose the conditions required to ensure the responsible connection of data centres to the electricity grid.
  • Prioritise consumption critical to public interest: The Government will prioritise electricity consumption that is necessary for social development and for the functioning of critical services over other forms of consumption. It will therefore review the requirements concerning the categories of consumption for which grid companies must reserve capacity (ordinary consumption). The aim is to include smaller-scale storage and processing capacity that is essential to supporting critical societal functions.
  • Modernise the connection obligation: The Government will modernise the regulatory framework governing the obligation of grid companies to connect new electricity demand to the grid, ensuring that it is better adapted to the current situation, where the connection queue far exceeds what can realistically be accommodated.
  • Ensure that major new consumers bear a greater share of costs: The Government wants major new electricity consumers to contribute more towards the costs of expanding grid infrastructure and the costs imposed on system operation. Consideration will be given to whether a distinction should be made between major new electricity demand and major expansions of existing demand.
  • New contributions to electricity generation: The Government will engage in dialogue with the data centre industry on how the industry itself, on a commercial basis, can contribute to the development of the power generation capacity needed to enable larger data centre facilities to be established more rapidly, including gas-fired power plants with carbon capture and storage (CCS) and offshore wind.
  • Consider state ownership: The Government will assess different models for state ownership in data centre projects that are considered to be of particular public interest.