OSLO: Norway's government said on Monday it will curb the rapid growth of power-hungry data centres in the Nordic country, becoming the latest nation to limit a buildout driven by the global artificial intelligence (AI) industry. Norway produces more power than it consumes and is a net exporter, but recent projections show that demand from new data centres could lead to an energy deficit and rising electricity prices in the coming years.
The rapid growth of data centres is meeting resistance in many countries, as seen in recent years, 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 centres until a government licensing scheme is in place to manage the buildout.
"The purpose is to gain more control over the growth of data centres, and ensure that we get the data centres we actually need," Minister of Digitalisation and Public Governance Torgeir Micaelsen told a press conference. The licensing scheme will favour data centres that serve defence, 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 centres accounting for 75 per cent of requests.
New data centres 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. This policy shift marks a significant turning point for the Nordic nation, which has historically been a hub for energy-intensive industries due to its cheap and abundant hydroelectric power.
The government emphasized that the transition to a more regulated environment is essential for maintaining national energy security. By prioritizing critical infrastructure, Norway aims to balance its technological ambitions with the practical limitations of its power grid.
Officials noted that the sheer scale of the current application backlog necessitated an immediate pause to prevent long-term economic instability. Industry experts suggest that this move could set a precedent for other European nations facing similar pressures.
As AI continues to demand massive computational power, the competition between tech giants and domestic energy consumers is expected to intensify. Norway's proactive approach highlights the growing tension between digital expansion and sustainable resource management.
The licensing framework is expected to be finalized in the coming months, providing clearer guidelines for investors. Until then, the moratorium on new grid connections remains in effect, ensuring that the national grid operator can assess the long-term impact of these massive energy-consuming facilities on the country's overall energy landscape.