It is urgent to have a data center policy on our terms

Our digitalized society is completely dependent on data centers. They are the heart of the digital infrastructure, securing everything from cloud services and artificial intelligence to emergency communications and public services. When data centers fail, society comes to a standstill, as the Think Tank Digital Infrastructure shows with clear examples. Still, most data centers today are owned by American tech giants. Can we trust them to safeguard our interests in a crisis situation?

As Long-Term also points out, data centres are strategic resources that give us control over our own data, strengthen preparedness and lay the foundation for the development of Norwegian technology, AI and expertise. At a time of increasing cyber threats and geopolitical turmoil, this is more important than ever.

At the same time, data centres are catalysts for the green transition. A digitalized power system requires robust data centers that can process large data streams related to renewable power and system stability. To pause data center development, as proposed by the Norwegian Society for the Conservation of Nature, is to turn our backs on the future. Instead, we must take control.

Norway has unique advantages: renewable energy, a cold climate and political stability. But without a clear framework and predictable conditions, we risk investments and jobs ending up in other countries – with a higher climate footprint and less control. Now the government must take action and facilitate a sustainable data center industry on our terms.

1. A national framework. The data center strategy lacks clear guidelines. This affects not only the data center industry, but also municipalities, local communities and other businesses. We need a comprehensive framework that coordinates legislation, policy instruments and planning processes. Where a strategy provides direction, a framework provides structure and principles for implementation. Such a framework will ensure that data centre development takes place in line with national goals for digitalisation, climate and security. As Langsikt writes, this is already in place in several European countries, and in both Denmark and Finland. 

2. Socially useful classification. Data centres must be assessed according to the role they play in society, and must strengthen both the business and public sectors. Those who support critical functions, emergency preparedness and restructuring must be prioritised. The alternative is that commercial interests control development at the expense of the needs of the community. 

3. Update the power and revenue distribution for the data center age. According to the Norwegian Board of Technology, data centers will be among the biggest drivers of increased power consumption in the future. They currently account for around 2 percent of Norway's consumption, but have reserved as much as 40 percent of the capacity in the power grid. By 2030, consumption could rise to 6 percent. In comparison, other power-intensive manufacturing accounts for 28 per cent. 

Major changes in the power landscape create conflict. One example is the concession power scheme, which is built on solidarity, but designed for an industrial reality that is over a hundred years old. We need a new model that ensures fairness, local value creation and predictability – either by defining data centres as "industry" in the sense of the Power Act, or by establishing a new distribution mechanism.

Also read: Previous posts in the date center debate

4. Norway can be a pioneer in sustainable data centers. We have a unique opportunity to facilitate the reuse of surplus heat in parallel with the industry's growth. SINTEF estimates that data centres can release almost as much electricity as they use, if all the heat is utilised. By connecting data centers to district heating networks, greenhouses or fishing facilities, we can create a circular economy in practice.

We also need to think smart about location. Around half of the energy used in data centers goes to cooling. Placing them near cold water or in mountainous areas provides natural cooling and lower energy requirements. At the same time, we must not forget that Norway tops the list of built-up nature per capita in Europe. In this case, the Planning and Building Act and the Nature Diversity Act must be used actively to ensure that data centres do not come at the expense of valuable nature. We can also consider incentives for cooperation with district heating companies. This can strengthen both the climate goals and the goals for energy efficiency.

5. Build more meeting places: To succeed, we need more regional arenas where business, municipalities, administration and politicians meet. It promotes understanding, reduces conflict, and allows for collaboration. It can also contribute to nuanced and fact-based policy development. The Norwegian Board of Technology's citizen workshop and Smart Senja's energy cafés show how such meeting places can create common solutions. The Norwegian data center industry has already invited the Norwegian Society for the Conservation of Nature to a dialogue. That's a good start.

We are at a crossroads. Either we let the data center development take place on other people's terms, or we take control ourselves. Now we have the chance to build an industry that creates jobs, strengthens national control and contributes to restructuring and growth. Let's seize it.