Data Centers in Stavanger
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Stavanger – Powering Digital Infrastructure with Green Energy
Stavanger is a strategic digital infrastructure hub for companies in the energy sector and those requiring resilient, low-latency connectivity to Northern Europe and the UK. The market's primary advantage lies in its access to abundant, low-cost, and almost entirely renewable power, which significantly reduces both operational expenses and carbon footprints for high-density deployments. This makes Stavanger an excellent choice for disaster recovery, secondary compute sites, and sustainability-focused enterprises.
Stavanger: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity, with primary international access via larger hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access cloud providers via private network extensions to hubs like Oslo. |
| Power Cost | Est. kr0.85-kr1.05/kWh | Power is ~96% renewable, primarily from hydro, ensuring stable and green energy. |
| Disaster Risk | Low (1.9/10) – as of September 2025 | Minimal exposure to significant natural hazards common in other regions. |
| Tax Incentives | No | Norway does not currently offer specific data center tax incentives. |
| Sales Tax | 25% VAT – as of September 2025 | Standard national Value Added Tax applies to services and equipment. |
Network & Connectivity Ecosystem
Stavanger provides a solid foundation for network connectivity, focused on reliable access to regional and international hubs. The ecosystem is supported by multiple data center operators offering carrier-neutral environments.
Carrier Density & Carrier Neutrality: The market includes 3 providers, offering access to a focused group of national and regional carriers as of September 2025. Carrier-neutral facilities ensure competitive options for transit and private connectivity.
Direct Cloud On-Ramps: There are no direct, in-market public cloud on-ramps as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through dedicated network services, typically terminating in Oslo.
Internet Exchange Points (IXPs): Public peering is limited within Stavanger itself. Most network operators establish private peering arrangements or interconnect at national IXPs in Oslo to exchange traffic efficiently.
Bare Metal: Bare metal server options are available in the region, often provisioned from larger national hubs. Providers like Hivelocity can serve deployments in the Norwegian market, offering customized server configurations.
Power Analysis
Norway is a world leader in renewable energy, and Stavanger benefits directly from this with one of the greenest and most reliable power grids globally.
Average Cost Of Power: Industrial electricity costs are estimated between kr0.85 and kr1.05/kWh as of September 2025. This competitive pricing, combined with a grid powered almost entirely by hydropower (~96%), offers significant operational savings and helps meet corporate sustainability goals.
Power Grid Reliability: The Norwegian power grid is exceptionally reliable and well-engineered. Data centers in the Stavanger area are supported by a sturdy infrastructure designed to serve critical industries, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Stavanger's location on the southwest coast of Norway makes it a strategic point for both local industry and international connectivity.
Proximity To Key Business Districts: Data centers in Stavanger are positioned to serve the region's dominant energy sector, including oil, gas, and renewable energy companies. This proximity enables low-latency support for industrial IoT, data analytics, and operational systems.
Regional Market Reach: The city is a key landing point for subsea cables connecting Norway with the UK and continental Europe. This provides effective reach for serving businesses across the North Sea region and offers a diverse routing path from the capital, Oslo.
Tax Advantage For Data Centers: Currently, there are no specific tax incentives targeted at data center development or operation in Norway. Standard corporate taxes and a 25% VAT rate apply, without special exemptions for the industry.
Natural Disaster Risk
Stavanger has a very low risk profile for natural disasters, making it a highly secure location for critical infrastructure.
Based on the INFORM Risk Index, the region scores 1.9 out of 10, classifying it as a "Very Low" risk environment as of September 2025. The primary natural hazards to consider are related to its coastal location, though their probability and historical impact remain minimal.
Key environmental risks include:
- Coastal Flood: The highest individual risk factor, though mitigation and modern infrastructure planning reduce its threat.
- River Flood: A secondary risk, primarily affecting specific low-lying areas.
- Drought: A minor risk, given the country's climate and water resources.
- Earthquake: Seismic activity is negligible.
