Vattenfall and Nscale sign renewable power deal for Norwegian AI data center

Vattenfall and data center developer Nscale have signed a long-term agreement to supply renewable electricity for the first phase of Nscale’s data center project in Kvandal, northern Norway. Nscale is positioning itself as a provider of infrastructure for advanced AI workloads outside traditional US cloud ecosystems.

The contract covers a significant share of the site’s energy demand from 2027 to 2031 and guarantees 100% renewable electricity throughout the period. The deal is tied to Nscale’s European AI Infrastructure Initiative, which aims to accelerate the rollout of large-scale artificial intelligence infrastructure.

The Kvandal facility is expected to start with an initial capacity of 230 megawatts, with potential for further expansion. Both companies say the agreement reflects the rapidly growing demand for clean energy driven by the expansion of AI and digital infrastructure.

The partnership highlights how energy providers and AI infrastructure developers are increasingly aligning to meet the power demands of next-generation computing.