GIGA-42 Holdings Limited has signed a Memorandum of Understanding with Norðurþing Municipality to collaborate on the development of a large-scale, AI-optimised data centre at Bakki, Húsavík in northern Iceland.
The MoU establishes a non-binding framework for cooperation on site allocation, zoning, infrastructure development, and permitting, with the objective of delivering a phased, modular data centre facility beginning with a target 50 MW first phase and building up to be one of Iceland’s first hyperscale data centres. The project will use Iceland’s resources of renewable geothermal power, cold-climate operational efficiency, and district heating networks, with the aim to create one of the most advanced and sustainable AI-focused data centres in Europe.
GIGA-42 is a recently formed joint venture between infrastructure development company Global InterConnection Group Limited and Northern DC AS (trading as ‘Scale-42’), with the goal to develop AI-optimised data centres in the Nordics. Scale-42 is a Norwegian-UK data centre developer and operator led by the founders of Hydrokraft (now Nscale, one of Europe’s largest hyperscalers), with a pipeline exceeding 1,000 MW of data centres across the Nordics.
Construction is expected to begin in the first half of 2026, and it is estimated that around 100 individuals will be involved in the construction, design and planning of the plant. When the first phase of the data center is completed, it is expected to create 50 to 80 permanent jobs in the technical field (electrical engineering, power generation, mechanical engineering, refrigeration technology), as well as project management, operations technology, systems engineering and general work.
Both Parties will work through feasibility and due diligence, with a target Final Investment Decision (FID) in 2026 and firstphase operations expected in 2027.
Photo: William Tasney, CEO of GIGA-42, and Bergþór Bjarnason, Deputy Mayor of Norðurþing. (via Norðurþing municipality)
