Data Centers in Telemark
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Telemark – Sustainable Power for Digital Infrastructure
Executive Summary
Telemark, Norway, is an exceptional market for businesses prioritizing sustainable, low-cost power and operational stability. Its infrastructure, built on abundant hydroelectric power, offers a reliable and green foundation for data-intensive workloads. This makes Telemark a prime location for companies aiming to reduce their carbon footprint and secure predictable energy pricing.
Telemark: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity, though not a primary international hub. |
| Direct Cloud On-Ramps | Over 1 – as of September 2025 | Microsoft Azure is available, with private connections to other major clouds. |
| Power Cost | ~NOK 0.80 - 1.10/kWh | Highly competitive pricing due to a grid dominated by renewable hydropower. |
| Disaster Risk | Very Low (1.9/10) – as of September 2025 | Minimal exposure to significant natural hazards, ensuring high uptime. |
| Tax Incentives | No | Norway does not offer specific tax incentives for data centers. |
| Sales Tax | 25% VAT – as of September 2025 | Standard Norwegian value-added tax applies to goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a region within Norway, Telemark is served by major national carriers. Carrier density is sufficient for enterprise needs, with access to a competitive market through facilities in the broader Oslo region.
Direct Cloud On-Ramps: The market provides direct access to Microsoft Azure, as of September 2025. This enables low-latency connections for hybrid cloud deployments. Connectivity to other providers like AWS and Google Cloud is available via network extensions from the main hub in Oslo.
Internet Exchange Points (IXPs): The primary internet exchange for Norway is FIXO (Fiks Oslo), located in the capital. Peering in Telemark is typically routed through Oslo, ensuring efficient traffic exchange within the Nordics and to the rest of Europe.
Bare Metal: Bare metal server options are available, primarily through providers with a presence in the greater Oslo area. Services from providers like Hivelocity and Leaseweb can serve the region, offering dedicated compute for demanding applications.
Power Analysis
Average Cost Of Power: Industrial electricity prices in Telemark are estimated between NOK 0.80 – 1.10/kWh, as of September 2025. This competitive pricing is a direct result of Norway's energy mix, which is approximately 96% renewable, mostly from hydropower. These low and stable power costs provide a significant operational advantage.
Power Grid Reliability: The Norwegian power grid is famously reliable and well-engineered. The infrastructure supporting the Telemark region benefits from this stability, with redundant connections ensuring consistent power delivery for critical data center operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Telemark serve local industrial and technology sectors while also providing a cost-effective alternative to facilities in the capital. Its location is strategic for businesses requiring a Norwegian presence without the premium cost of Oslo.
Regional Market Reach: Telemark effectively serves southern Norway and acts as a gateway to the broader Nordic region. Its stable power and political environment make it a compelling location for European disaster recovery sites and primary compute for Nordic operations.
Tax Advantage For Data Centers: Norway currently offers no direct tax incentives for the construction or operation of data centers. The primary financial benefit comes from the country's exceptionally low and stable cost of electricity, which directly reduces operational expenditures.
Natural Disaster Risk
Telemark has a very low risk profile for natural disasters, with an INFORM Risk score of 1.9 out of 10, as of September 2025. This stability is a key advantage for ensuring business continuity and asset protection.
The primary environmental hazards to consider are:
- Coastal Flood: The most significant listed natural hazard for the coastal country, though specific risk in Telemark varies by exact location.
- River Flood: A moderate consideration in areas near rivers and waterways.
- Drought: A minor risk, given the country's climate.
- Earthquake: Seismic activity is very low and not considered a significant operational threat.
