Norway halts connection reservations for new data centres — Cyprus Mail

In Norway, national power grid operator Statnett has temporarily halted connection reservations for new data centres. The decision will remain in effect until the introduction of a government licensing system intended to regulate the expansion of the industry. According to Cyprus Mail, the government seeks to limit the rapid growth of energy-intensive data centres amid the development of artificial intelligence.

Licences for critical infrastructure

Minister of Digitalisation and Public Governance Torgeir Micaelsen said the aim of the new system is to strengthen control over the growing number of data centres and ensure that the facilities the country needs are built.

According to him, priority in licensing will be given to data centres serving defence, police, emergency response services, healthcare services and other critical infrastructure, including mobile networks and the financial system. At the same time, Norway plans to restrict access to land and electricity for global cloud companies and cryptocurrency businesses, while supporting national needs in artificial intelligence technologies.

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Demand for connections

Norway produces more electricity than it consumes and is a net exporter of electricity. However, according to the cited forecasts, demand from new data centres in the coming years could lead to an energy shortage and higher electricity prices.

Energy Minister Terje Aasland said that since the beginning of the year, Statnett has received applications to connect new capacity totalling 26,000 megawatts. This exceeds Norway's current capacity, and data centres account for 75% of such applications.

The government also said that new data centres must cover the costs incurred by the power grid. They may also be asked to build gas-fired power plants for their own energy supply, including with carbon capture and storage technologies.