Norway plans to introduce a licensing regime for data centers as the Norwegian government seeks to control the industry’s growth and prioritise projects that deliver public benefits. The proposed regime will cover both existing and new data centers, with transitional arrangements for operators. The government plans to present its main principles in autumn 2027 and is also considering additional regulatory measures.
According to a Norwegian government press release, data centers will be assessed against requirements covering digital security, emergency preparedness and the availability of computing capacity for artificial intelligence in Norway, the wider Nordic region and Europe, under the proposed framework.
The move comes as demand for electricity and grid capacity continues to outstrip what Norway’s power system can realistically accommodate. According to grid operator Statnett, data centers with a combined demand of 800 MW are already connected to the grid, while 4,200 MW have been allocated reserved capacity and another 9,100 MW are awaiting connection. A further 18,000 MW in capacity requests have been submitted. Norway’s peak electricity demand is just over 25,000 MW.
Facilities involved in cryptocurrency-related activities will not be considered beneficial to society. The government also plans to introduce stricter conditions for connecting data centers to the electricity grid. The Ministry of Energy will amend regulations to give Statnett the authority to impose requirements on new connections.
“Data centres are part of our critical infrastructure. They contribute to value creation, secure digital services and greater digital independence for Norway, however, we have made it clear that we do not want all types of data centres in Norway” said Torgeir Micaelsen, Digitalisation and Public Governance Minister. “We need data centres that are as beneficial to society as possible. This is why the Government is initiating work on a licensing regime that will establish requirements and conditions for the establishment and operation of data centres.”
Terje Aasland, Energy Minister, said, “We are enabling more and faster development of power and grid infrastructure, but it is not desirable or possible to accommodate the electricity demand from all the data centres seeking to establish in Norway. We must ensure sufficient power is available, in the right locations, for purposes that serve the public interest. That is why we are taking action now.”
Other planned measures include reviewing how grid capacity is allocated, prioritising electricity consumption linked to critical services and public interests, and updating the rules requiring grid companies to connect new electricity demand.
The government also wants large new electricity consumers to shoulder a greater share of the costs associated with grid expansion and system operations. It will examine whether separate rules should apply to new large-scale demand and expansions of existing facilities.
In addition, the government plans to discuss with the data center industry how operators could help finance new power generation on commercial terms. Options include gas-fired power plants equipped with carbon capture and storage (CCS) and offshore wind projects. The government will also assess potential models for state ownership in data center projects deemed particularly important to the public interest.
The expansion of data centers has also raised concerns about the stability of Norway’s electricity system, particularly the potential for large and rapid changes in power demand. Statnett has temporarily suspended new grid capacity reservations for data centers, with the measure expected to remain in place until no later than August 1, 2027.