Microsoft Secures $6 Billion Agreement for Sustainable AI Facility Powered by Renewable Energy in Norway
Norway is positioning itself as a key player in Europe's digital landscape and energy future. The country is set to convert its abundant hydropower into digital infrastructure, aiming to become a cornerstone of Europe's digital resilience and energy sovereignty.
This shift is part of a larger strategy in the region, where competitiveness and climate commitments are being carefully balanced. The strategy is reflected in a significant project aimed at acquiring 100,000 NVIDIA GPUs by 2026 to meet the soaring demand for energy-efficient AI workloads.
The choice of location for this project is strategic, taking advantage of Norway's resource availability and its geographical positioning. The project is a joint venture between Nscale and Aker, with the aim of developing large-scale AI infrastructure in Northern Norway.
The partnership, known as "Stargate Norway," is designed to provide infrastructure that will anchor Europe's sovereign AI capacity. The project is scheduled to be completed in 2025 and will be powered entirely by renewable energy, a decision that underscores the increasing importance of renewable energy in the digital economy.
The cool climate of Norway also reduces cooling costs for the AI computing infrastructure, making it an attractive location for such projects. The agreement secures AI computing capacity powered by renewable energy for a period of 5 years.
Microsoft, one of the companies involved in the project, has framed the deal as both a growth and sustainability opportunity. The company has also created a supplier decarbonization team to address emissions tied to cloud and AI operations.
The Norway deal demonstrates Microsoft's commitment to delivering advanced AI services while building cutting-edge, sustainable infrastructure. Øyvind Eriksen, President & CEO of Aker, called the agreement a milestone for the joint venture with Nscale and for Norway's role in enabling sovereign AI infrastructure.
The project is part of OpenAI's "OpenAI-for-Countries" program, with OpenAI constructing the first OpenAI data center in Europe at Kvandal in northern Norway. The agreement is the latest in a wave of large-scale AI and data infrastructure investments that tie directly to climate and energy policy.
As investors and policymakers weigh trade-offs between compute expansion, carbon targets, and resource allocation, the Norway agreement illustrates how renewable energy access is becoming a decisive factor in the AI and data infrastructure race. The deal underscores the growing recognition that renewable energy is no longer just a compliance measure, but a prerequisite for scaling the digital economy.
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