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Renewables power Norwegian leased data centre market growth

Written by Mon 26 Jul 2021

The leased data centre market in Norway will grow to 216 total MW by 2024, adding another 100MW over the next three years.

A new report released by CBRE Data Centre Solutions Consulting credits the surge in growth to a number of factors, including access to renewable energy.

In the Norwegian market, both enterprise and cloud deployments also support increased demand for data centre colocation services. First, there is an increase in the number of companies seeking colocation services. Additionally, more companies are leveraging big data, IoT, AI, and HPC – technologies that require more processing power and storage space of their data centres.

The availability of low-cost and renewable energy in Norway leads to more international companies moving data to the region to control costs and meet increasingly difficult environmental objectives.

Low latency connections are available near Oslo, where a majority of the new leased data centre supply is located. Henry Gray, Consulting Analyst for CBRE, noted that decentralization of operations for European businesses is improving Norway’s competitive position in the data centre market.

“Historical latency issues are becoming less of a constraint and the continued investments from data centre operators are placing Norway in an extremely competitive position with neighbouring markets. Power is still the main attraction to the market where cost savings and environmental sustainability and governance (ESG) targets can be met with ease.”

“Our figures are just starting to tell the story of the real importance of green energy in the data centre industry.”

Recently, the government of Norway proposed legislation requiring data centre operators to offer waste heat to district heating systems. This rule would go beyond EU requirements, which affect industrial plants greater than 20 MW to look for opportunities to reuse waste heat. In Norway, the new legislation would extend this requirement to data centres with a capacity of 2 MW or more.

Extending the EU rule would mean that the waste heat from data centres – not just from plants with thermal energy – would be put back into the grid, heating industrial plants, fish farms, swimming pools, and more.

Written by Mon 26 Jul 2021


colocation legislation renewables
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