Icelandic data center operator Borealis Data Center and national energy company Landsvirkjun have signed an agreement for increased power purchases to support the growth of Borealis’ data centre operations in Blönduós.
The long-term agreement provides for an additional 12 MW of firm power, in addition to existing contracts between the parties. Borealis has been a customer of Landsvirkjun since commencing operations in Iceland in 2018. In addition to its campus in Blönduós, Borealis operates data centres in Reykjavík, Reykjanesbær, and Finland.
Borealis’ data centre campus in Blönduós is being equipped to support the latest generation of liquid-cooled NVIDIA infrastructure for artificial intelligence services. Alongside the expansion of data centre capacity, Borealis is also investing in facilities for employees and customers who will establish their own operational presence on site.
The growth of data centre infrastructure across Iceland has contributed to increased demand for power. Data centres currently consume around 70 MW of power, representing approximately 3.5% of total power consumption in Iceland.
Björn Brynjúlfsson, CEO of Borealis: "Demand for infrastructure supporting artificial intelligence and high-performance computing is growing rapidly, and we are already seeing how this technology is transforming the world. Iceland has the potential to play a significant role in the global AI supply chain by building the infrastructure and capabilities that underpin the next generation of technological innovation. This agreement with Landsvirkjun enables us to accelerate development in Blönduós, create high-value jobs, and strengthen the diversity and resilience of Iceland’s export sector.“
Hörður Arnarson, CEO of Landsvirkjun: "The transformation of the data centre industry in recent years is fully aligned with Landsvirkjun’s strategy of supporting society’s digital transformation. A strong data centre sector is important for Iceland’s competitiveness, and its significance will only become more evident as artificial intelligence continues to advance. Landsvirkjun welcomes this new agreement with Borealis, which forms part of the continued development of this important industry."
