Norway: Network Pause for AI Data Centers and License in Preparation

Norway maintains existing connections but freezes new capacity reservations for data centers while it defines technical requirements. The government is simultaneously preparing a licensing system that would prioritize uses deemed to be of public interest. This pause comes as 32.1 GW of projects are in the pipeline and other European countries are also tightening their connection rules.

Retained Connections and Future Priority Licensing in Preparation

Already connected projects are not being called into question, and those in the queue are not automatically dismissed. Installations with the necessary technical approvals can proceed, and Statnett indicates it will continue to process certain requests, particularly those close to commissioning. Meanwhile, the government has proposed a licensing system covering both existing and future data centers. It aims to prioritize installations considered socially beneficial, particularly for defense, emergency preparedness, health, digital security, and computing capacity for Norway and Europe, while excluding cryptocurrency mining from this category. The executive also seeks increased contributions from developers towards network costs and is exploring levers to stimulate new electricity production, such as offshore wind and gas with carbon capture and storage. The system is not yet in effect; its main principles are expected by autumn 2027 and would add a second layer of review beyond Statnett's technical requirements.

What the Pause Changes Immediately and Until August 1, 2027

Statnett has decided to suspend new network capacity reservations for data centers, as well as certain technical approval requests related to atypical load profiles. This decision, announced on a Monday, is presented as a temporary measure intended to allow for the development of technical requirements and could last until at least August 1, 2027. The operator describes it as a risk reduction and states it will remain in effect as long as the necessary knowledge base for defining future rules is not ready. From the industry perspective, the sector association reports increased uncertainty for ongoing projects, including those that have already reserved capacity but still need technical approval. According to Reynir Johannesson, projects in the queue will have to wait for a reservation, and even projects with reserved capacity could be delayed. He also highlights the impact on local supply chains and calls for clarifications on the handling of pending applications and decision timelines.

What Technical Risks Are Targeted and What Is Known in Norway

Statnett's technical work focuses on the behavior of large computing loads during disturbances and on managing rapid consumption variations that could cause oscillations. However, the operator has not identified any incident attributable to a data center in Norway. Stability issues have been observed in other countries, but it remains to be determined whether similar requirements apply to the Norwegian system. Certain operational characteristics of AI facilities are involved, including training loads with cyclical demand profiles, or protections and inverters that can disconnect significant loads. Menon also points out that the Norwegian network, which is heavily hydraulic, has significant inertia and that the share of data centers has historically been limited, advocating for further analysis before transposing foreign standards.

A Major Incident in Ireland and a Tightening Spread Across Europe

In Ireland, on June 6, a single-phase failure at the Poolbeg 220 kV substation caused the disconnection of approximately 480 MW of data center load, or 52% of their demand at that time, without compromising system security according to EirGrid. The operator's modeling shows that up to 90% of this demand could disconnect during credible three-phase failures, a finding that has prompted a revision of network codes regarding service continuity, power recovery, and load variation speed. More broadly, Paweł Czyżak notes a wave of reforms across Europe, from Spain to the UK, including Portugal, Denmark, Finland, and Poland. He believes that difficulties, which have so far been mainly administrative, could become technical given the scale of planned expansions, particularly in Norway or Finland. In Denmark, Energinet froze new connections in March after around 33.5 GW of requests covering data centers, power-to-X projects, and batteries, a volume significantly higher than a national peak of about 7 GW. The operator has since replaced the "first come, first served" approach with a selection based on project maturity.

A Massive Pipeline and Reservations Complicating Planning

Statnett reports 32.1 GW of data center projects, including 800 MW already connected, 4,200 MW with reserved capacity, 9,100 MW in the queue, and 18,000 MW in other requests. These volumes illustrate the interest in Norway, whose peak electricity demand has slightly exceeded 25 GW, without constituting firm commitments for construction or immediate consumption. Network planning is made more complicated by capacity reservations sometimes made years before construction or customer acquisition, potentially blocking resources to the detriment of other projects. Neil Osnato warns that a reservation does not guarantee project realization and clearly distinguishes between a requested, reserved, deliverable, or revenue-generating megawatt. He recommends requiring proof of land control, financial commitments, customer demand, and milestone progress before allocating scarce capacity, to avoid building infrastructure for projects that do not materialize.

The Norwegian Sector Supports Stability but Calls for Co-Constructed Rules

The association representing data centers in Norway states that it shares the goal of network stability but requests to participate in defining clear and measurable criteria, proportionate to the impact of each site. It defends the societal value of data centers as infrastructures for businesses, public services, and research, while considering cryptocurrency mining as a separate case that should not justify priority. Transparent and verifiable prioritization criteria are demanded, along with clarifications on the treatment of existing reservations, committed investments, and contracts in the event of a licensing system. Reynir Johannesson warns that uncertainty regarding connection dates may lead investors and clients to delay their projects or turn to other countries. He believes that a foundation of technical requirements co-developed with the industry and harmonized across states would be beneficial, while doubting that the overall approach considered in Norway would serve as a model at the European level.