Icelandic data center operator Borealis and Modularity, a company dedicated to transforming the creation and development of large-scale undersea communications networks, announced a partnership to pursue the development of a new 100% renewable energy-powered AI data center and submarine cable system.
The focus of Borealis Data Center's, which acquired a Finnish data center earlier this year, will remain on sustainable high-tech data center operations in Iceland. Modularity will handle the development of the submarine cable system, aimed at improving communication capabilities. This project will launch, and significantly enhance, data connections between Iceland and the United States as well as further improve connections to the European continent.
The first phase of the project will be operational by 2026; with targeted completion by 2028. This collaboration is part of a broader strategy to address evolving market demands and the critical need for sustainable digital infrastructure. Leveraging both Iceland's strategic geographic location, skilled local workforce, and access to reliable renewable power, this project aims to build a fully operational digital ecosystem for deploying AI and machine learning models across global markets.
“Iceland, renowned for its substantial geothermal and hydroelectric energy resources, offers an ideal environment for sustainable high-tech data center operations. The naturally cool and consistent climate provides an efficient solution for data center cooling, significantly reducing energy consumption and carbon footprint,” said Bill Barney, Co-Founder and Chairman of Modularity. “By leveraging these unique advantages, we are aiming to establish a robust AI hub in Iceland that not only excels in energy efficiency and environmental sustainability, but also strengthens and expands the existing data center industry in Iceland.”
“By transitioning the use of sustainable energy generation towards forward-thinking, green IT, Iceland will further solidify its position as a global leader in digital innovation and environmental stewardship”, said Bjorn Brynjulfsson, CEO of Borealis Data Center. "This strategic partnership has the potential to create an interesting and vibrant digital ecosystem for AI and position Iceland as a global leader in IT and AI infrastructure, moving Iceland to the forefront of meeting global demands for sustainable AI infrastructure."
Upon the completion of this project, Iceland will become a critical node for submarine cable connectivity, between North America, Europe, and beyond, enhancing global data transfer and communication capabilities.
"By establishing Iceland as a fiber rich subsea data connectivity hub, Iceland’s data center industry will continue to contribute to economic growth and drive technological advancements across the country," said Bjarni Thorvardarson, Modularity partner and former CEO of Hibernia Networks. "The Modularity team is excited to join forces with Borealis Data Center to bring this visionary project to life. By leveraging Iceland's unique conditions and clear value proposition, we are creating a sustainable, high-tech environment that will strengthen the nation's IT infrastructure and attract global businesses while also enhancing Iceland’s overall economic competitiveness and benefiting its society at large.”
Specific details on both the data center or the subsea cable have not been shared.
