Norway to restrict the establishment of energy-intensive data centers

Oslo – The Norwegian government will curb the rapid development of energy-intensive data centers in the country. Norway thus becomes the latest country to restrict expansion driven by the growth of the artificial intelligence (AI) sector. The aim is to better regulate the construction of data centers, while also ensuring that the country has the data centers it actually needs. According to Reuters, Minister of Digitalisation and Public Governance Torgeir Micaelsen made the announcement at a press conference today.

Norway generates more electricity than it consumes and is a net exporter. However, the latest forecasts indicate that demand from new data centers could cause an energy shortfall and rising energy prices even in Norway in the coming years.

The rapid growth of data centers is meeting resistance in many countries. This was also evident during the recent US congressional elections. In a series of local referendums, voters approved restrictions on their construction, and in states such as Texas, Georgia and Ohio, they elected Democratic governors who promised tighter regulation. Critics argue that the sector creates few jobs and drives up electricity prices.

Norway's national transmission system operator, Statnett, today temporarily suspended grid connection reservations for new data centers until a government licensing system to manage their expansion is introduced. It is due to take effect on August 1, 2027. Micaelsen said the licensing system would prioritize data centers serving defense, police and emergency preparedness, healthcare services and other critical infrastructure, such as mobile networks and the financial system. The country will also restrict access to land and electricity for global cloud companies or cryptocurrency firms.