Data Centers in Telemark

Telemark – Sustainable Power for Digital Infrastructure

Telemark, Norway, is an emerging location for data center development, especially for organizations prioritizing sustainable and cost-effective power. Its access to abundant renewable energy makes it a prime candidate for high-performance computing, AI workloads, and businesses aiming to meet aggressive carbon reduction goals.

Telemark: At A Glance

Network & Connectivity Ecosystem

Telemark's connectivity is solid, with reliable routes to major European hubs through Oslo. While not a primary interconnection market itself, it provides capable infrastructure for most business needs.

Carrier Density & Carrier Neutrality: Carrier availability is sufficient for enterprise needs, with most connectivity options concentrated in regional hubs. Facilities generally offer carrier-neutral access, allowing connections to national and international providers.

Direct Cloud On-Ramps: The region offers direct on-ramps to Microsoft Azure, enabling low-latency connections to its services. As of September 2025, there are 15 cloud regions accessible from Norway. Access to other major providers like AWS and Google Cloud is typically established via private network extensions to interconnection points in Oslo.

Internet Exchange Points (IXPs): Public peering is primarily handled through IXPs located in Oslo. Businesses in Telemark can leverage these exchanges for efficient traffic routing and reduced latency by connecting through their network carriers.

Bare Metal: Bare metal server options are available, often provisioned from providers with a presence in the broader Nordic region. Services from companies like Hivelocity and OVHcloud can serve workloads requiring dedicated physical hardware.

Power Analysis

Norway's power infrastructure is a key advantage, defined by its stability, sustainability, and competitive cost.

Average Cost Of Power: Industrial electricity is priced competitively, estimated between kr0.75 – kr0.95/kWh as of September 2025. This cost structure is highly attractive for energy-intensive computing.

Power Grid Reliability: The Norwegian grid is exceptionally reliable and well-engineered. The energy mix consists of approximately 96% renewables, predominantly hydropower. This provides a stable and predictable power source ideal for mission-critical data center operations.

Market Access, Business & Tax Climate

Telemark offers strategic access to the Nordic market within a stable and transparent business environment.

Proximity To Key Business Districts: The region is historically an industrial hub and is developing a technology ecosystem. Its proximity to Oslo provides access to Norway's primary commercial and financial center.

Regional Market Reach: From Telemark, organizations can effectively serve the Norwegian population and extend their reach into the broader Nordic and Northern European markets with low latency.

Tax Advantage For Data Centers: While Norway does not offer specific tax incentives for data centers, the country's predictable regulatory framework provides a stable environment for investment. The primary financial benefit stems from the low, stable cost of renewable power rather than direct tax credits.

Natural Disaster Risk

Telemark has a very low risk profile for natural disasters, enhancing its appeal for critical infrastructure.

The overall INFORM Risk score is 1.9 out of 10, classifying the region as "Very Low" risk as of September 2025. The primary natural hazards to consider, though still rated as low, are:

• Coastal Flood: 6.6/10
• River Flood: 5.9/10
• Drought: 2.2/10
• Earthquake: 0.4/10

Risks from tsunamis and tropical cyclones are negligible. This low-risk environment minimizes potential downtime and supports business continuity.