Data Centers in Reykjavik
8 locations found
- A
atNorth ICE01
10 Steinhella, Hafnarfjordur
- IA
Internet á Íslandi hf RIX-K2
104 Katrínartún, Reykjavik
- ME
Mila ehf. Reykjavík
25 Ármúli, Reykjavik
- IA
Internet á Íslandi hf RIX-TG
Tæknigarður, Dunhaga 5, Reykjavik
- D
DataCell Reykjavik
Reykjavik, Reykjavik
- OK
Opin Kerfi Reykjavik
2 Blikastaðavegur, Reykjavik
- D
DataCell Keflavik
Unknown 1, Southern Peninsula
- VG
Verne Global Reykjanesbaer
868 Valhallarbraut, Njardvik
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Reykjavik – Sustainable Power for Demanding Workloads
Reykjavik is a premier market for organizations prioritizing sustainability and power-intensive computing. Its access to 100% renewable geothermal and hydropower makes it an exceptional choice for high-performance computing (HPC), AI model training, and large-scale data processing where energy cost and environmental impact are critical. This unique power profile provides a stable, low-cost energy advantage for workloads that can tolerate slightly higher latency to primary European and North American markets.
Reykjavik: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong transatlantic fiber, though fewer direct carrier options than mainland European hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Private connections are available. Nearest major hubs include London and Dublin. |
| Power Cost | ≈€0.05-€0.08/kWh | Based on nearly 100% renewable geothermal and hydropower sources. |
| Disaster Risk | Very Low (1.6/10) | Minimal overall risk, with specific monitoring for volcanic and seismic activity. |
| Tax Incentives | Yes | Multiple programs exist, including specific incentives for data center investments. |
| Sales Tax | 24% VAT | Standard rate applied to goods and services, as of September 2025. |
Network & Connectivity Ecosystem
Reykjavik's connectivity is defined by its strategic subsea cable links to both North America and Europe, offering resilient, low-latency paths to both continents. The ecosystem is growing, focused on serving the specialized needs of its data center tenants.
Carrier Density & Carrier Neutrality The market has a focused number of providers, with at least one carrier-neutral facility offering access to multiple networks as of September 2025. This ensures competitive connectivity options for tenants.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Iceland as of September 2025. Businesses connect to cloud providers via dedicated private network links (PNI/wave) to major European hubs like London, Dublin, or Amsterdam. This approach provides secure and reliable access for hybrid cloud deployments.
Internet Exchange Points (IXPs) The Reykjavik Internet Exchange (RIX) is the primary peering point in Iceland. It facilitates efficient local traffic exchange, reducing reliance on international transit for domestic data flows.
Bare Metal Bare metal server capacity is available, catering to companies that require dedicated, high-performance compute resources. Providers like phoenixNAP offer solutions for HPC and other demanding applications.
Power Analysis
Iceland's power infrastructure is a primary driver of its data center market, offering unique cost and sustainability benefits.
Average Cost Of Power Industrial electricity rates are highly competitive, typically ranging from €0.05 to €0.08 per kWh as of September 2025. The power is generated from nearly 100% renewable geothermal and hydropower sources. This predictable, low-cost energy is a significant operational advantage for power-intensive workloads.
Power Grid Reliability The national power grid is modern and reliable, engineered to support heavy industry. Data centers are served by redundant power feeds from multiple substations, ensuring high levels of uptime and service continuity.
Market Access, Business & Tax Climate
Iceland offers a business-friendly environment with specific advantages for technology and data center operations, supported by a strategic location between key global markets.
Proximity To Key Business Districts Data center campuses are located primarily on the Reykjanes Peninsula, providing close proximity to Reykjavik's central business district and Keflavik International Airport (KEF). This location balances security with accessibility for logistics and personnel.
Regional Market Reach While not a primary hub for in-region application delivery, Iceland serves as an ideal location for disaster recovery, data archiving, and compute-intensive workloads supporting both European and North American operations.
Tax Advantage For Data Centers Iceland provides significant tax incentives for foreign investment, including a reported 35% tax credit for data center projects. These fiscal benefits are designed to lower the total cost of ownership and encourage long-term investment in the country's digital infrastructure.
Natural Disaster Risk
Iceland has a Very Low overall natural disaster risk profile, with an INFORM Risk score of 1.6 out of 10 as of September 2025. While seismic and volcanic activity are present, modern infrastructure and monitoring systems effectively mitigate these risks.
The primary natural hazards to consider include:
- Coastal Flood: The highest individual risk score, though modern facilities are sited to mitigate this exposure.
- Earthquake: A known risk in a seismically active region, addressed through stringent building codes for critical infrastructure.
- Epidemic: A low but recognized risk factor for any geography.
- River Flood, Tsunami, Drought, Tropical Cyclone: Risk from these events is negligible.
