The Norwegian government said it will curb the rapid growth of data centers, while Statnett introduced a temporary suspension of further reservation of network capacity for data centers.
Norway now produces more electricity than it consumes and is a net exporter of electricity. Recent projections however, show that demand from new data centers, driven by the AI boom, could lead to an energy deficit and rising electricity prices in the coming years. Norway is home to 800 megawatts of data centre capacity, but 4,200 MW of new projects have already received planning permission, and a further 9,100 MW are pending approval.
License to operate
"The purpose is to gain more control over the growth of data centers, and ensure that we get the data centers we actually need," Minister of Digitalisation and Public Governance Torgeir Micaelsen told at a press conference. The licensing scheme will favour data centers 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, Micaelsen added.
"To handle the growth in data centers, regulations and requirements must be further developed", Peer Olav Østli, executive vice president for System operation and market in Statnett, said. He emphasizes that Statnett's decision does not imply a general halt in connection with data centers. Facilities that have received the necessary functional requirements approved may be able to be associated. The measure also does not affect existing affiliations.
"The temporary shutdown applies until Statnett has developed and established the necessary functional requirements for data center facilities and these have been approved by RME. In addition, there is a need for effective mechanisms to ensure compliance with the requirements. With such rules in place, we will have a good basis for safely connecting data centers to the Norwegian power system", Østli added.
"Data centers can also be a resource in, for example, balancing the power system. In the long term, we will therefore look at how this potential can be realized."
