Data Centers in Telemark
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Telemark – The Global Standard for Green Compute
Telemark serves as a specialized hub for high-performance computing and massive archival workloads where sustainability is mandatory. The combination of carbon-neutral power and deep industrial heritage makes this market a primary choice for organizations requiring extreme uptime and physical security. This environment allows for the efficient deployment of power-hungry hardware while maintaining a low total cost of ownership.
Telemark: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable fiber paths with direct links to Oslo. |
| Direct Cloud On-Ramps | Over 1 – as of September 2025 | Local access to Microsoft Azure. |
| Power Cost | $0.05–$0.07/kWh – as of September 2025 | Highly competitive rates from renewable sources. |
| Disaster Risk | Low (1.9/10) – as of September 2025 | One of the most stable profiles in Europe. |
| Tax Incentives | No – as of September 2025 | No industry-specific state incentives currently active. |
| Sales Tax | 25% VAT – as of September 2025 | Standard Norwegian value-added tax applies. |
Network & Connectivity Ecosystem
Telemark functions as a high-security node within the Nordic fabric, offering the isolation necessary for sensitive deployments while maintaining efficient paths to Scandinavian hubs.
Carrier Density & Carrier Neutrality: Carrier count: over 5. As of September 2025, the market is served by ~5–10 carriers, including national incumbents and regional fiber specialists that manage transport to the larger European backbone.
Direct Cloud On-Ramps: Over 1, enabling access to 15 cloud regions as of September 2025. Direct connectivity is available for Microsoft Azure, facilitating hybrid architectures that bridge specialized on-premises hardware with hyperscale resources.
Internet Exchange Points (IXPs): Most peering occurs via the Norwegian Internet eXchange (NIX) in Oslo. This serves as the primary gateway for both domestic and international traffic reaching the region.
Bare Metal: Resilient bare metal services are available through providers such as Latitude.sh and OVHcloud, providing high-performance compute without virtualization overhead.
Power Analysis
Telemark offers a power profile that is the gold standard for sustainability. The region is a historic center for hydroelectric production, which translates to a significant cost advantage for intensive deployments.
Average Cost Of Power: Industrial electricity costs approximately $0.05–$0.07/kWh as of September 2025. This pricing is significantly lower than the European average, allowing for predictable operational scaling. The energy mix is approximately 96% renewable, predominantly from hydro sources, assisting enterprises in meeting strict carbon-neutral targets.
Power Grid Reliability: The grid is purpose-built for heavy industry and is supported by a redundant, multi-substation architecture. This infrastructure provides a reliable energy supply that is less susceptible to the fluctuations common in markets reliant on intermittent wind or solar.
Market Access, Business & Tax Climate
Telemark bridges the gap between industrial roots and the modern digital economy, providing a stable environment for long-term infrastructure investment.
Proximity To Key Business Districts: Data centers are strategically located near industrial hubs like Rjukan. This proximity is vital for industrial IoT applications and research organizations that require localized, high-capacity compute.
Regional Market Reach: From a central Telemark location, providers can serve the entire Norwegian population and reach major Baltic and North Sea markets with minimal latency.
Tax Advantage For Data Centers: No industry-specific state incentives are currently active. The primary financial benefit for operators is the exceptionally low cost of renewable energy, which reduces the total cost of ownership compared to high-tax jurisdictions.
Natural Disaster Risk
The overall risk for Telemark is rated as Low (1.9/10) as of September 2025. The region is geologically stable, making it an ideal site for disaster recovery and primary data residency.
- Coastal Flood (6.6): This is an indirect regional factor; inland facilities are generally shielded from direct impact.
- River Flood (5.9): Managed through specific site selection and purpose-built drainage infrastructure.
- Drought (2.2): Low impact on operations due to the abundance of natural water reservoirs.
- Earthquake (0.4): Seismic activity is negligible, posing no material threat to structural integrity.
Other natural hazards are minor or not listed for this specific geography as of September 2025.