Last week both Norway’s TSO and the Norwegian Water Resources and Energy Directorate estimated that Northern Norway will have the lowest power prices in the future, both in Norway and the Nordics.
This confirms that Northern Norway is estimated to have a cost advantage for power intensive industries such as data centers. Not only will the power bill be lower, as these analyses predict, but in addition Northern Norway has the lowest grid costs and potentially the most favourable climate, which will save a data center millions. Not to mention that we have the greenest power.
The map shows the overview of estimated power prices (real 2020 numbers) in the Nordics (øre/kWh or EUR/MWh if assuming 10 NOK/EUR). (Source: NVE: Langsiktig kraftmarkedanalyse 2020-2040, p. 26)
We would like to remind new DC investors to review not only the power price predictions, but also go into depth of the grid cost. The grid cost might be difficult to understand, but there are millions to be saved if locating your data center at favourable sites.