Vattenfall, a European energy company and Nscale, a neocloud and vertically integrated AI hyperscale infrastructure company, have signed a long-term renewable power agreement tied to the first phase of Nscale’s planned data center development in Kvanndal, Norway, as demand for electricity from AI infrastructure projects continues to grow. Nscale’s Kvanndal site, located outside Narvik in northern Norway, is planned to launch operations in 2027 with an initial capacity of 230 MW and the possibility for future expansion.
According to a Vattenfall press release, the agreement will cover a significant share of the electricity needed for the project between 2027 and 2031. The companies did not disclose financial terms. The deal comes as technology companies and infrastructure providers seek long-term access to renewable power for data centers supporting artificial intelligence and cloud computing operations as the facility is expected to run entirely on renewable power during the contract period.
Ronny Brunstad, Managing Director Vattenfall Norway, said, “The Nordics offer strong conditions for sustainable data centers. Through long-term electricity agreements, energy-intensive and fast-growing industries gain predictability and security in an increasingly volatile energy market.”
Stian Jenssen, Managing Director, Nscale Scandinavia, said, “Developing large scale AI infrastructure in Norway and Europe depends on trusted partners throughout the value chain, and renewable electricity is a vital part of our business model.”
This project forms part of Nscale’s European AI infrastructure initiative and aligns with Vattenfall Business Sales’ focus on supporting data center growth in the Nordic region. The Nordic countries have become an increasingly attractive location for such projects because of their access to renewable and fossil-free electricity, cooler climates that reduce cooling costs, and established energy infrastructure.