Guidance on data centres

The government, in partnership with us and several other organisations, is now launching a guide for municipalities considering potential data centre developments.

How much power is available in the area? Could the development conflict with existing or other planned developments? How many jobs could the project create, and has it undergone sufficient quality assurance? These are some of the questions municipalities should ask before deciding whether to approve a data centre development.

The new guide gives municipalities practical advice on what to consider when a data centre operator gets in touch or when they want to establish a data centre themselves.

'The guide will make it easier for municipalities to assess what they should consider when a data centre operator wants to establish a facility in their area. Many municipalities have asked for a checklist like this,' says Gjelsvik.

Some municipalities have been dissatisfied with data centre developments. The common thread is that the development was promoted as a data centre that would create many jobs, but ended up being used for cryptocurrency mining, creating few or no jobs.

We work closely with Norwegian businesses and municipalities, and we want to help municipalities make sound decisions based on accurate information. It was therefore natural for us to contribute to developing guidance for municipalities.

'Our Invest in Norway division has long worked both strategically and operationally to establish data centres. We have experience and networks across the Norwegian and international data centre industry, as well as in Norwegian municipalities. We are happy to support Norwegian municipalities that need advisory beyond the guidance provided in the guide,' says Finn Kristian Aamodt, Head of Invest in Norway.

The guide provides eight practical recommendations for municipalities:

• Carry out a background check on the data centre operator – including its ownership, financial statements and business model
• Complete the necessary planning clarifications
• Set requirements for the developer. For example, require repurchase agreements so that the municipality can reclaim the site if it is not used for its intended purpose.
• Check whether the municipality has the resources to support this type of establishment
• Check whether the project has undergone sufficient quality assurance
• Check whether the municipality benefits from the new development through existing industry, for example by using waste heat or fibre infrastructure
• Check how much grid capacity is available in the region and assess this against other planned developments
• Contact our Invest in Norway team if you need additional support

The government plans to present a new Electronic Communications Act to the Norwegian Parliament before the summer. It will require data centre operators in Norway to register, report the amount of electricity used for cryptocurrency mining, and maintain appropriate security standards in line with telecommunications providers.

We will update the guide if the framework changes. Read the guide here.