Nordic colocation provider Borealis Data Center has signed a long-term Power Purchase Agreement (PPA) with Icelandic national energy company Landsvirkjun for 12MW of firm power to support the expansion of its data center campus in Blönduós, Iceland.
The PPA builds on an existing relationship between the two companies, with Borealis a Landsvirkjun customer since beginning operations in Iceland in 2018. In addition to the Blönduós campus, the company operates additional data centers in Reykjavík, Reykjanesbær, and Finland.
Opened in 2019, the campus originally offered 37MW of capacity. The campus was upgraded earlier this year with the launch of a new HPC building, adding 12MW of capacity. The additional 12MW PPA signed with Landsvirkjun corresponds with the capacity requirements of the new building.
"Demand for infrastructure supporting artificial intelligence and high-performance computing is growing rapidly," said Björn Brynjúlfsson, CEO of Borealis. "Iceland has the potential to play a significant role in the global AI supply chain by building the infrastructure and capabilities that underpin the next generation of technological innovation. This agreement with Landsvirkjun enables us to accelerate development in Blönduós, create high-value jobs, and strengthen the diversity and resilience of Iceland's export sector."
"A strong data center sector is important for Iceland's competitiveness, and its significance will only become more evident as artificial intelligence continues to advance," said Hörður Arnarson, CEO of Landsvirkjun. "Landsvirkjun welcomes this new agreement with Borealis, which forms part of the continued development of this important industry."
Data centers currently consume around 70MW of power in Iceland, representing approximately 3.5 percent of the country's total power consumption. The country has become an increasingly attractive destination for data center development in recent years, driven by access to baseload renewable energy and a cool climate suited to low-cost cooling.
Landsvirkjun is Iceland's largest electricity generator, founded in 1965 and wholly owned by the Icelandic state. The company supplies over 70 percent of Iceland's electricity, operating 14 hydropower stations and three geothermal power stations across five operational areas.