Data Centers in Iceland

Data center operators in Iceland have access to renewable power and a cool climate to operate some of the world’s lowest cost data centers. Competitive power prices and optimal temperatures make Iceland an ideal location for data centers.

Iceland´s robust infrastructure, secure connectivity, renewable energy supply, business environment and other key factors combine to position Iceland at the top of Cushman & Wakefield’s 2016 Data Center Risk Index.

Current international data center operators in Iceland include our partner Verne Global and Advania.


Total cost of ownership (TCO)

Power is one of the main cost drivers for data centers. The competitive price of Landsvirkjun's power offering and low carbon emissions of the country's power generation make Iceland a highly attractive location for data centers.

BroadGroup’s research on the TCO of a typical data center shows that over a 10-year period, Iceland can offer a considerable cost advantage compared to other locations.

The Nordic HPC data center reported a 50% decrease in power costs by moving the system to Iceland (Source).

The BMW Group reduced power costs of HPC applications by as much as 82% by moving them to Iceland (Source).

10 year cost of data center operations


Cool Climate

Cool climate

Iceland’s temperate climate provides the optimal environment for data centers. Average temperatures in Iceland range from -2 °C to 14 °C (28 °F to 57°F), making year-round free cooling possible. In addition to cool air, cold water is widely available, providing another very low-cost cooling option.

Due to the cool climate the Power Usage Effectiveness (PUE) that can be achieved in Iceland is very low. Companies have achieved up to 80% savings and a PUE as low as 1.07 by relocating to Iceland.

Average temperatures in Iceland


Carbon Footprint

Carbon footprint

Landsvirkjun does not depend on fossil fuels for power production. In fact, the Company only generates electricity from renewable natural resources.

Landsvirkjun is committed to the sustainable utilisation of natural resources and has a strategy for becoming a carbon neutral company. For more information see the latest Environmental Report.

The lower power usage, due to the cool climate, and the 100% renewable energy production give data centers in Iceland a unique carbon profile.

Landsvirkjun only generates electricity from renewable natural resources

Land Availability

Land availability

Land for development is widely available, both in Reykjavík and other areas. Established operational facilities are also available for end user clients and operators.

Multiple sites are zoned according to the needs of the data center industry, including proximity to substations, fiber, the main international airport and Reykjavik which is Iceland's capital.

For more information on land availability visit Invest in Iceland.

Ease of Power Connection

Ease of getting electricity

Iceland ranks no. 9 out of 189 countries on the World Bank’s Ease of Getting Electricity Index. The index tracks the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse.

Doing Business - Getting Electricity indicators

Procedures, time and cost to obtain an electricity connection

Ranking for the top countries on the World Bank’s Ease of Getting Electricity Index

White Papers and Reports

White Paper on Power Security

A detailed look at Iceland as a choice for industries and companies interested in the benefits of power security.

White Paper on HPC in Iceland

Nordic HPC – How four universities work together to maximize computing power by offshoring to Iceland.

Broadgroup Report

Report by Broadgroup on Iceland as an international data center hub.


Haraldur Hallgrimsson


Email: business.development[at]

Vala Valthorsdottir


Email: business.development[at]

PWC report

A report by PWC on the important factors needed in order to evaluate Iceland as a location for your business. The report includes general information on the country in addition to details on the economic system, housing, tax and labour.

Request report

The report from PWC on Iceland as a location for your business

Register to download PWC report