AI investment surge heads north to Norway's icy landscape by investment firm
Nestled within the Arctic Circle, the coastal town of Narvik, Norway, is set to become a hub for technological innovation with Aker's ambitious plan to build an AI factory. This advanced AI-focused data center facility, backed by Norwegian billionaire Kjell Inge Røkke's industrial investment firm, Aker, promises to drive industrial growth, job creation, and export revenues [1][2][4][5].
The strategic location of Narvik offers unique advantages, with abundant and affordable clean energy, particularly 230MW of hydropower capacity already accessible at the site, and natural Arctic cooling conditions ideal for power-hungry data centers [1][2][5]. Aker's CEO, Øyvind Eriksen, described the project as a catalyst for industrial development, positioning Narvik as a new value chain around AI and data center technology in Northern Norway [1][2][5].
Financial support for the project comes from investment manager ICP Infrastructure, and personnel with expertise from Aker Horizons (a green energy subsidiary merged into the parent company) will be involved, bringing experience from renewable projects including green ammonia and green steel [2]. Discussions are ongoing with various potential tech partners and data center clients, but no specific companies have been publicly named yet [1][2][5].
This project follows Aker's history of investments in AI, software, and industrial data companies, including Bitcoin investment firm Seetee and industrial data company Cognite, reflecting ambitions to enter the AI value chain early [1]. Narvik's location within the Arctic Circle gives it unique advantages - green, abundant hydropower and natural cooling reduce energy costs and carbon footprint, crucial factors since data centers are very energy-intensive [1][2].
The project is seen as part of a broader "AI gold rush" toward the Arctic as companies seek sustainable and efficient infrastructure for AI and computing workloads [1]. This development comes as Big Tech companies, such as Microsoft, are heavily investing in AI and cloud capacity in the Nordics [3]. Microsoft, for instance, has invested $3.2bn to boost its cloud and AI capacity across its three data centres in Sweden [3].
In summary, Aker's facility in Narvik is a future-oriented AI data center project designed to capitalize on Norway's clean energy and northern climate, aiming to drive industrial growth, innovation, and new value chains with several ongoing partner discussions but no finalized deals disclosed [1][2][5]. This project, if successful, could position Narvik as a potential ground zero for Europe's next tech race.
The AI factory project in Narvik, driven by Aker and supported by Norwegian billionaire Kjell Inge Røkke's industrial investment firm, aims to leverage the town's unique advantages in data-and-cloud-computing, particularly its abundant and affordable clean energy sources and natural Arctic cooling conditions. This tech-focused venture, with financial backing from investment manager ICP Infrastructure, is expected to utilize artificial-intelligence and bring growth, job creation, and export revenues to the region.
