AI computing has been growing exponentially since it entered the global lexicon in 2023. In less than two years, it has developed a reputation for being an energy-hungry and water-consuming detriment to the climate.

As the AI-specific need for data centers increases significantly, companies are seeking sustainable capacity globally. The Nordics have drawn the interest of AI companies due to the region’s position as a renewable energy hub.

The benefits of Norway, Sweden, Finland, and Denmark are coming to light, and below are a few strong reasons to consider the Nordics for data center capacity:

The Nordics are committed to renewable energy sources such as hydroelectric and wind to provide data centers with a reliable and sustainable energy supply. For example, the government of Norway states that “98% of its electricity production comes from renewable energy sources,” which ensures a carbon-free energy source to power data centers.

The region offers naturally cold temperatures, reducing the need for extensive mechanical cooling. Since AI and IT workloads run at a very high density, this means more heat is generated. Therefore, air and water cooling are needed at the rack and chip. At the rack, the cool outside air allows for a very efficient approach to heat removal from the data center white space. The cold waters result in lower energy consumption and lower operational costs when cooling the chip.

Known for its stable political environment, this region provides a secure location for data – minimizing the risk of disruption.

The Nordic region boasts a well-developed and reliable telecoms infrastructure, including high-speed internet connectivity and advanced telecommunications networks, facilitating efficient data transmission and communication. The area is geographically close to major European markets, providing low-latency connectivity for data transmission between data centers and users in Europe.

Other benefits include a low risk of earthquakes, hurricanes, or floods, reducing the risk of downtime for data centers caused by natural events.

Its advanced infrastructure and proximity to major European markets make the Nordics an ideal location for customers.

The Nordics boast renewable energy resources, including hydropower, wind, and geothermal power. These options provide the type of energy needed to power data centers without relying on fossil fuels, reducing carbon emissions and environmental impact. For example:

With their many rivers and waterfalls, the Nordics – Norway, and Sweden, in particular – offer extensive hydropower. Hydropower is known for its low environmental impact and high efficiency, providing a consistent and reliable source of clean, renewable energy.

Denmark has invested heavily in wind power, utilizing the strong winds along its coastlines to generate electricity.

Iceland has a distinctive reliance on renewable energy sources, as all of its power generation is derived from renewables. As noted by Baseload Power Japan, “The power supply in Iceland consists of a whopping 100 percent renewable energy, with 70% consisting of hydroelectric power and 30 percent geothermal power.”

In the Nordic countries, data centers are able to greatly lessen their carbon emissions and operational costs. The green energy infrastructure in place helps maintain the resilience and sustainability of data center functions, which in turn reduces reliance on unpredictable energy markets. Additionally, renewable energy is secured through long-term power agreements, ensuring its future viability.

The wealth of renewable energy sources in the region results in a consistent and stable energy supply, which keeps prices competitive with those in other areas. The Nordics have made substantial commitments towards enhancing energy infrastructure, including the development of transmission lines and power generation, thereby ensuring the reliability and availability of energy supply.

Moreover, the region provides flexible options regarding contract terms, pricing strategies, volume commitments, and renewable energy assurances. Long-term power contracts not only offer stability and predictability in energy expenses but also assist businesses in managing risks linked to energy market fluctuations and unpredictable fuel prices.

The Nordics are recognized for their commitment to political neutrality and a non-aligned stance. This characteristic makes the region less susceptible to destabilization or violent upheavals.

This stability is attractive for businesses aiming to safeguard sensitive data, as the likelihood of political turmoil compromising their information is minimal.

Governments in the Nordics are consistently unveiling sustainability initiatives that are expected to meet or exceed the sustainability standards demanded by customers in their own countries:

The Swedish government introduced the Electricity Certificate System, aimed at promoting the use of energy sourced from renewable resources.

Denmark initiated a Green Tax Reform and green R&D.

Nordic governments have adopted measures and incentives to foster the development of renewable energy and sustainability. This backing includes subsidies, tax incentives, and regulatory frameworks that promote investment in green energy initiatives, such as data centers.

The stable political systems and well-defined regulatory frameworks in the Nordics create a dependable environment for long-term business agreements, including power contracts.

In summary, the Nordic region ought to be considered for data center locations. With the growth of HPC applications like AI, machine learning, and deep learning, the benefits of the Nordics are clear. Equipped with a renewable and dependable power supply, the Nordics offer efficient and reliable power.

Companies that are considering establishing data centers in the region should be aware of the numerous renewable power sources available. Additionally, the presence of stable and sustainability-focused governments provides significant tax advantages, helping data centers and their customers to achieve both their business and sustainability objectives.

Welcome to DediRock, your trusted partner in high-performance hosting solutions. At DediRock, we specialize in providing dedicated servers, VPS hosting, and cloud services tailored to meet the unique needs of businesses and individuals alike. Our mission is to deliver reliable, scalable, and secure hosting solutions that empower our clients to achieve their digital goals. With a commitment to exceptional customer support, cutting-edge technology, and robust infrastructure, DediRock stands out as a leader in the hosting industry. Join us and experience the difference that dedicated service and unwavering reliability can make for your online presence. Launch our website.