Data Centers in Reykjavik
8 locations found
- A
atNorth ICE01
10 Steinhella Hafnarfjordur 221 ISL, Hafnarfjordur
- IA
Internet á Íslandi hf RIX-K2
104 Katrínartún Reykjavik ISL, Reykjavik
- ME
Mila ehf. Reykjavík
25 Ármúli Reykjavik 108 ISL, Reykjavik
- IA
Internet á Íslandi hf RIX-TG
Tæknigarður, Dunhaga 5 Reykjavik 107 ISL, Reykjavik
- D
DataCell Reykjavik
Reykjavik Reykjavik 101 ISL, Reykjavik
- OK
Opin Kerfi Reykjavik
2 Blikastaðavegur Reykjavik ISL, Reykjavik
- D
DataCell Keflavik
Unknown 1 Southern Peninsula 230 ISL, Southern Peninsula
- VG
Verne Global Reykjanesbaer
868 Valhallarbraut Njardvik 235 ISL, Njardvik
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Reykjavik – Sustainable Power for High-Density Compute
Reykjavik is the premier destination for organizations running massive AI, HPC, or blockchain workloads that demand near-zero carbon footprints. By utilizing 100% renewable geothermal and hydroelectric energy, this market provides long-term cost stability and a reliable hedge against global energy price volatility.
Reykjavik: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable subsea links connect Iceland to Europe and North America. |
| Direct Cloud On-Ramps | 0 – as of January 2026 | Nearest on-ramp hubs are located in London and Dublin. |
| Power Cost | $0.05–$0.08/kWh, as of January 2026 | Entirely renewable mix using geothermal and hydroelectric sources. |
| Disaster Risk | Low (1.6/10), as of January 2026 | Seismic activity is the primary consideration for local facilities. |
| Tax Incentives | Yes | Includes a 35% data center credit and residency exemptions. |
| Sales Tax | 24% VAT, as of January 2026 | Standard value-added tax for commercial services in Iceland. |
Network & Connectivity Ecosystem
As a specialized infrastructure hub, Reykjavik provides a unique bridge between continents. Connectivity is managed through high-capacity subsea cable systems that ensure reliable data flow to global markets.
Carrier Density & Carrier Neutrality: Carrier count: over 10 as of January 2026. The market supports a specialized group of carriers providing resilient subsea routing. Most facilities operate with a neutral stance, allowing for flexible interconnection between domestic and international providers.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of January 2026. There are no direct physical on-ramps for major clouds in Iceland. Organizations typically access AWS, Google Cloud (GCP), or Microsoft Azure via private network extensions to hubs in London or Dublin.
Internet Exchange Points (IXPs): The Reykjavik Internet Exchange (RIX) is the primary hub for local peering. It facilitates efficient traffic exchange between local ISPs and content providers, keeping domestic data within the country and reducing latency.
Bare Metal: High-performance bare metal services are available for storage-heavy and compute-intensive applications. Regional specialists and global providers like Hivelocity offer specialized hardware configurations to meet local demand as of January 2026.
Power Analysis
Reykjavik is globally recognized for its energy profile, offering some of the cleanest and most stable power costs available to modern enterprises.
Average Cost Of Power: Industrial electricity rates typically range from $0.05/kWh to $0.08/kWh, as of January 2026. Because the grid is powered entirely by domestic renewable sources, operators are shielded from the price volatility associated with fossil fuel markets. This stability provides a significant competitive advantage for long-term capacity planning.
Power Grid Reliability: The Icelandic grid is well-engineered and utilizes a redundant ring architecture. This system is purpose-built to support heavy industrial loads, providing high uptime for data centers through multiple geothermal and hydroelectric generation plants.
Market Access, Business & Tax Climate
Iceland has positioned itself as a strategic mid-Atlantic data harbor, attracting international firms looking for sustainable growth.
Proximity To Key Business Districts: Data centers are located near the capital and the Keflavik international corridor. This proximity is vital for the growing fintech, biotech, and maritime technology sectors that require low-latency access to primary data sets as of January 2026.
Regional Market Reach: Reykjavik serves as a strategic midpoint between North America and Europe. This geographic position allows companies to serve both continents from a single location with manageable latency and high security.
Tax Advantage For Data Centers: The Icelandic government provides a 35% tax incentive specifically for data center investments. This significant benefit helps lower the total cost of ownership for large-scale infrastructure projects while offering residency exemptions for technical specialists.
Natural Disaster Risk
Overall Risk: Low (1.6/10) as of January 2026
Iceland's natural risk is characterized by its volcanic and seismic environment, though modern data centers are built to exceed international safety standards. The following hazards are identified as of January 2026:
- Coastal Flood: 6.5 – A regional concern restricted to specific low-lying coastal areas.
- Earthquake: 5.4 – Managed through resilient building codes and specialized structural engineering.
- Epidemic: 2.7 – Minimal risk to facility operations and maintenance.
Other natural hazards, such as tsunamis, river floods, and tropical cyclones, are considered negligible or not listed for the Reykjavik market as of January 2026.
