Bjørn Rønning, the head of the Norwegian Datacenter Industry (NDI), brings years of experience and extensive expertise to the data center sector. We spoke with him to explore Norway’s data center landscape, the role of cryptocurrency operations, and the future prospects for the industry.
Established in 2021 with just seven members, the industry association NDI has grown significantly. Three years later, the organization now has 70 members and has become an important voice for the industry, actively engaging with politicians and authorities to shape its future.
Throughout his career, Rønning has actively participated in the development of critical subsea cables, positioning Norway as an attractive hub for data centers.
Norway’s position in the data center industry
Thanks to its abundant renewable energy and cold climate, Norway stands out as an ideal location for data centers. Norway is well-positioned to meet ESG requirements, which significantly impact financing and investment decisions. Most potential data center customers emphasize green energy and sustainability as key competitive advantages, Rønning explains.
Over the years, Norway has developed a robust infrastructure that provides excellent global connectivity— not in terms of physical distance but in milliseconds. The subsea cables connecting Norway to Europe and the U.S. effectively shrink the distance, Rønning adds.
Rønning believes that Norway’s strong position in the data center industry took off after the pandemic in 2020. – That was when we realized how dependent we were on digitalization and how much easier it made our daily lives. As a result, the demand for data center services grew, and in Norway we both had the capacity and we were competitive.
The world is taking notice. Google has begun building an 860 MW data center in Skien, a city in eastern Norway. Green Mountain is completing a TikTok data center with an initial capacity of 90 MW, expandable to 150 MW. These projects demonstrate Norway’s growing appeal on the global stage.
Addressing the crypto challenge
Rønning voices strong skepticism regarding cryptocurrency centers, which tarnishes the industry’s reputation. – Crypto centers are highly damaging to the data center industry’s reputation, and we distance ourselves from them. Additionally, the authorities have made it clear that cryptocurrency operations are not desirable in Norway, he states.
The Norwegian Parliament shares Rønning’s concern and is considering a ban on cryptocurrency mining. Previously, Rønning publicly remarked that cryptocurrency mining is not part of the legitimate data center industry and contributes little to societal value.
This sentiment was echoed by Karianne Tung, Norway’s Digitalization and Administration Minister, during a parliamentary session. The minister emphasized that the country’s energy resources should not be allocated to cryptocurrency mining, arguing that such operations provide minimal value to local communities. A majority in Parliament supports further investigation into a potential ban.
Bjørn looking ahead
Rønning is optimistic about the future of Norway’s data center industry.
He says, “I am confident that the industry will continue to experience healthy growth. I also hope and believe that people will gain a better understanding of what this industry truly represents.”
While he anticipates challenges and occasional criticism, Rønning emphasizes the importance of public education and transparency. – Norway is in a strong position as a data center hub, and we will continue to demonstrate that this is a profitable and well-regulated business. There should be no doubt about that, he concludes.
In conclusion, he hopes to rapidly expand Norway’s power grid, which is crucial for ensuring sustained growth in the data center sector.