Data centers move to the Arctic: why servers need permafrost
Companies are locating data centers in the Arctic to reduce cooling costs and utilize local energy. However, the region's remoteness increases logistical and network expenses.
Cooling can consume up to 40% of the energy used by a data center. This is why some companies are relocating servers to the Arctic, where buildings can be cooled using outside air or water from non-freezing reservoirs. Another advantage is the abundance of cheap renewable energy from hydroelectric power plants, wind, and geothermal sources, which also reduces the carbon footprint.
The downsides include complex and expensive logistics, communication and power supply disruptions, high latency, and a shortage of IT specialists.
Three operational projects
BitCluster Nord, Norilsk. A mining data center opened in 2020 on the site of the closed Nickel Plant owned by Nornickel. Its capacity is 11.2 MW, and the company plans to increase it to 31 MW. The facility is powered by gas generation and two hydroelectric power plants. In terms of energy consumption, it is second only to Nornickel in the city.
Verne Global, Iceland. The data center has been operating since 2012 on a former NATO base near Keflavik. It is fully powered by geothermal stations and hydroelectric power plants, with a capacity of 140 MW. Its specialization is high-performance computing and AI.
Green Mountain, Norway. The data center is located in a former NATO bunker with an area of over 20,000 sq. m. It is cooled by water from a fjord, which remains around 8 °C year-round, and electricity is provided by hydroelectric power plants. Among its clients are DNB Bank and cloud provider UpCloud.
