Data centres in Iceland are increasingly focused on artificial intelligence applications and services for customers requiring data storage and high-performance computing capacity. This is a global trend and the European Union, for example, has set a target of tripling data centre capacity across Europe over the next five to seven years.
In recent years companies have increasingly turned to the Nordic countries for data centre development, attracted by access to baseload renewable energy and a cool climate.
Iceland’s recently published Industrial Policy identifies data centre growth as an opportunity to enhance productivity and value creation in the economy. The policy emphasizes high-productivity industries and diversified exports with a low carbon footprint, creating a broad range of jobs across the country.
The expansion of Borealis’ data centre campus in Blönduós aligns with this vision. The facility 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.
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."
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.“
