Norway plans to introduce a licensing scheme to curb the rapid expansion of energy-intensive data centers, giving priority to facilities that serve defense, health care and other critical sectors, Qazinform News Agency correspondent reports.
The measures were announced on November 9 at a press conference held by Minister of Digitalization and Public Governance Torgeir Micaelsen and Energy Minister Terje Aasland.
“The purpose is to gain more control over the growth of data centers and ensure that we get the data centers we actually need,” Micaelsen said.
According to the minister, the licensing scheme will favor data centers supporting defense, police and emergency preparedness, health services and other critical infrastructure, including the mobile network and the financial system. While Norway intends to meet its national needs for artificial intelligence, access to land and electricity will be restricted for global cloud providers and cryptocurrency companies. Micaelsen added that the scheme will also cover existing data centers and that state ownership may be considered for projects of particular public importance.
Aasland said national grid operator Statnett has received connection applications for 26,000 megawatts of new capacity so far this year, exceeding Norway’s current total capacity. Data centers account for 75% of these requests and about half of the grid capacity already reserved for new projects.
The energy minister noted that even with more power generation and grid capacity, hosting as many data centers as are now seeking to enter the country would be neither realistic nor desirable, stressing that growth must be managed with regard to the grid, power supply and nature.
Earlier the same day, Statnett temporarily halted new connection reservations for data centers until the licensing scheme is in place, saying the step was necessary to ensure the secure operation of the power system.
Under the government’s plans, new data centers will be expected to cover the costs they impose on the grid and may be required to build their own gas-fired power plants equipped with carbon capture and storage.
Norway currently produces more electricity than it consumes and is a net power exporter. However, recent projections indicate that rising demand from data centers could push the country into an energy deficit and drive up electricity prices. The Norwegian Water Resources and Energy Directorate (NVE) estimates that data centers already consume about 3 terawatt-hours a year and has warned that a sharply weakened power balance by 2035 could lift electricity prices by 35% to 55% above its earlier forecasts.
Earlier, Qazinform reported that Prime Minister Olzhas Bektenov held a meeting to assess the progress of the Data Center Valley project in Pavlodar region, an initiative designed to boost Kazakhstan’s digital economy and speed up the country’s digital transformation.