Norway weighs data center power demands amid global surge

Australia is exploring a new policy that could compel data centers to produce their own power, a move driven by the sector's rapidly growing electricity consumption. Currently, data centers account for about 2% of Australia's grid usage, but this figure is projected to reach 10% within a decade.

Meanwhile, Norway is also experiencing a boom in its data center industry. The Norwegian Water Resources and Energy Directorate (NVE) reported that data centers are likely the sector with the greatest potential for increased power consumption in the coming years. Globally, data center electricity use is expected to double by 2030, with Europe anticipating a substantial rise between 2024 and 2035. NVE estimates that Norwegian data centers could consume about 6% of the country's total electricity by 2030, though this figure carries significant uncertainty.

Reynir Jóhannesson, head of the industry organization Norwegian Data Center Industry, noted that many data centers already contribute to new power production through long-term agreements. He suggested that any requirements for self-generation should apply broadly to all new, power-intensive industries, not just data centers. Jóhannesson pointed out that Norway's oil and gas sector's electrification alone consumed four times more electricity last year than the entire Norwegian data center industry.

Jóhannesson cautioned against directly adopting Australia's proposed regulations, citing the vast differences between the two countries' energy systems and challenges. Australia is phasing out coal power, operates an isolated grid, and links its data center policy to a broader AI and industrial strategy. Norway, in contrast, has a surplus of renewable power, extensive international grid connections, and has already tightened regulations for data centers.

Digitalization and Administration Minister Karianne Tung affirmed Norway's commitment to attracting data centers that create value and align with national interests. She highlighted existing mechanisms where companies needing grid connections or increased capacity contribute to infrastructure investments. Tung also pointed to long-term power purchase agreements as a way to provide predictability for both power producers and data centers.