Carbon Centric: Data centre licensing may ease power prices but deter investment
- Norway plans to assess a licensing scheme for data centre establishment and operation, with main principles targeted for autumn 2027.
- Statnett paused new grid-capacity reservations for data centres, with the halt expected to end by 1 August 2027 at the latest.
- The authors say fixed-price power offers for businesses are around 50% higher than two years ago.
- Gas power with CCS could help spur shared CO₂ transport and storage infrastructure, the authors argue.
Potential benefits
The authors say licensing could moderate data centre growth and electricity demand, helping to limit pressure on power prices. They also argue that gas power with carbon capture and storage (CCS) could support shared CO₂ transport and storage infrastructure, enabling more industrial CCS projects.
Risks for projects and investment
Statnett has paused new reservations of grid capacity for data centres until no later than 1 August 2027. Projects behind data centres in the queue may remain waiting if allocating capacity to them would disadvantage those ahead. The authors also warn that frequent changes to the rules could make Norway appear politically risky to investors, while capital for power-intensive projects can move to other countries.
Call for common frameworks
The authors support prioritising scarce power for projects with the greatest value, but urge Norway to avoid a national licensing arrangement and instead develop predictable frameworks with Nordic countries and the EU.
Source: Carbon Centric