Landsvirkjun and atNorth Akureyri Sign New Green Firm PPA

Landsvirkjun and atNorth, the Nordic data centre operator in Akureyri, have signed a firm Power Purchase Agreement (PPA) for up to 12 MW, effective from the second half of 2026. The five-year agreement, which includes Guarantees of Origin, qualifies as a Green PPA.

Because of limitations in the electricity transmission system in Iceland, electricity supply in the north exceeds that in the south, creating opportunities for long-term firm PPAs with companies operating in the region.

atNorth, a longstanding customer of Landsvirkjun, also operates data centres in Hafnarfjörður and Reykjanesbær, as well as in Sweden, Denmark, and Finland. Two years ago, the companies signed a firm PPA for up to 5 MW, coinciding with the launch of atNorth’s operations in Akureyri. With the new PPA, Landsvirkjun will supply the Akureyri data centre with up to 12 MW for the next five years, extending the previous contractual period.

Data centres have undergone substantial changes recently. The current focus is on artificial intelligence (AI) and services for clients requiring large-scale data storage and high-performance computing. This shift aligns with Landsvirkjun’s strategy to advance digital progress in Iceland.

Technological progress and the rising demand for digital infrastructure make data centre operations an exciting industry, expected to grow much faster than most other sectors in the coming years. Icelandic data centres have partnered with major international companies and institutions, such as those involved in climate research, complex financial models, automotive design, and genetics and biotechnology.

The collocation services offered by data centres in Iceland support almost the entire digital infrastructure across the country. All websites and mobile applications are hosted on these centres, making them a vital part of modern life.

„Artificial intelligence and a robust data centre industry can significantly enhance Iceland‘s international competitiveness. The race is ongoing, and countries around the world are now competing to attract new projects in the development, production, and use of artificial intelligence. Landsvirkjun‘s new PPA with atNorth in Akureyri marks a significant step forward in cultivating this essential future industry in Iceland.“