Norway's government has said it will curb the rapid growth of power-hungry data centers in the Nordic country, becoming the latest nation to limit a buildout driven by the global artificial intelligence industry.
Producing more power than it consumes, Norway is a net exporter – but recent projections show that demand from new data centers could lead to an energy deficit and rising electricity prices in the coming years.
The rapid growth of data centers is meeting resistance in many countries, as seen in the recent US midterm election, with critics saying that the industry provides few jobs and pushes up power prices.
Norwegian national grid operator Statnett on Monday temporarily halted reservations of connections for new data centers until a government licensing scheme is in place to manage the buildout.
"The purpose is to gain more control over the growth of data centers, and ensure that we get the data centers we actually need," Minister of Digitalization and Public Governance Torgeir Micaelsen told a press conference.
Data centers are increasingly politically unpopular – and could also stop Norway being a net exporter of power. /Reuters
The licensing scheme will favour data centers that serve defense, police and emergency preparedness, health services and other critical infrastructure such as the mobile network and the financial system, Micaelsen said.
While Norway wants to support the national need for artificial intelligence, it will restrict the access to land and electricity for global cloud companies or cryptocurrency firms, he added.
Energy Minister Terje Aasland said Statnett had received connection applications for 26,000 megawatts of new capacity so far this year, more than Norway's current capacity, with data centers accounting for 75% of requests.
New data centers should pay for costs incurred by the grid, and may be asked to build gas-fired power plants, including carbon capture and storage, to provide their own electricity, the government said.
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