Microsoft noted that the location was chosen for its abundant hydropower and low local electricity demand, because of its small population and transmission capacity
In sum – what to know:
Microsoft signs $6.2B AI deal – Five-year contract from 2026 will provide AI compute capacity in Norway through Nscale and Aker, powered entirely by renewable energy.
Kvandal site to host workloads – New data center will start with 230 MW and could expand to 520 MW, serving Microsoft, OpenAI, and potentially other clients.
Norway becomes AI hub – Narvik region highlighted as a strategic European location, complementing Nscale’s growing UK projects with Microsoft and OpenAI.
Microsoft has signed a five-year, $6.2 billion agreement with the aim of securing AI computing capacity in Norway from U.K.-based Nscale and investment company Aker, according to a release by the U.S. software giant.
The deal, set to begin next year, will draw on capacity from a new data center in Kvandal, northern Norway, powered entirely by renewable energy. The U.S. company also noted that the project will be developed in phases. Nscale and Aker first announced the project in July, saying it would provide 230 MW initially, with potential to expand by another 290MW. While originally unveiled as a site for OpenAI, the facility was always intended to host additional clients, according to a Bloomberg report.
Microsoft noted that the location was chosen for its abundant hydropower and low local electricity demand, because of its small population and transmission capacity.
Jon Tinter, president of business development and ventures at Microsoft, said: “It is inspiring to see how Nscale and Aker are building cutting edge, sustainable AI infrastructure, and adding this facility to our comprehensive Microsoft cloud offering in Europe demonstrates our unwavering commitment to customers on the continent.”
Nscale founder and CEO Josh Payne highlighted Norway’s growing role in Europe’s AI infrastructure: “Delivering one of the largest GPU deployments in the world reflects the unprecedented demand for compute and confirms Narvik’s role as a strategic hub for AI in Europe.”
The announcement follows news earlier this week that Microsoft and Nscale will build a U.K.-based AI supercomputer in Loughton, Essex, housing more than 23,000 Nvidia GPUs, with OpenAI also set to use several Nscale data centers in the country.
Thanks to clean and reliable energy, a cool climate and well-developed power grids, global tech companies are choosing the Nordics as a base for data centers that support artificial intelligence.
AI models require massive computing power, and that means they also need large amounts of energy. That’s where the Nordic countries come in. The region already has a strong track record of producing renewable energy through hydropower, wind and other sources. It also has political stability, modern infrastructure and space to grow.
