Data Centers in Telemark
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Telemark – Sustainable Power for High-Density Computing
Executive Summary
Telemark, Norway, is an emerging data center location ideal for organizations prioritizing sustainable, high-density computing. Its access to abundant, low-cost hydropower and a stable, cool climate provides a significant total cost of ownership advantage. This makes it a compelling choice for workloads where operational efficiency and environmental responsibility directly impact profitability and brand reputation.
Telemark: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity, with primary routes through Oslo to major European hubs. |
| Direct Cloud On-Ramps | Over 1 – as of Sep 2025 | Direct connection to Microsoft Azure is available. |
| Power Cost | Est. 0.70–0.90 NOK/kWh | Industrial power is exceptionally affordable, sourced almost entirely from renewable hydro. |
| Disaster Risk | Low (1.9/10) – as of Sep 2025 | Very low exposure to significant natural hazards ensures high uptime. |
| Tax Incentives | No – as of Sep 2025 | Norway does not offer specific tax incentives for data centers. |
| Sales Tax | 25% VAT – as of Sep 2025 | Standard Norwegian Value Added Tax applies. |
Network & Connectivity Ecosystem
Telemark's connectivity is solid, leveraging Norway's national fiber backbone with primary interconnection points located in Oslo.
Carrier Density & Carrier Neutrality: Carrier availability is focused within carrier-neutral facilities. While not as dense as primary European hubs, the ecosystem provides sufficient diversity for enterprise needs, with access to over 20 national and regional carriers as of September 2025.
Direct Cloud On-Ramps: Over 1 private on-ramp is available, providing direct, low-latency access to 15 global cloud regions as of September 2025. The available cloud provider is Microsoft Azure. Access to other major clouds like AWS and Google Cloud is achieved via network extensions from hubs like Oslo.
Internet Exchange Points (IXPs): There are no public internet exchanges within Telemark itself. Most peering is handled privately or routed through the primary Norwegian IXP, NIX (Norwegian Internet Exchange), located in Oslo.
Bare Metal: Bare metal server options are available, typically provisioned from data centers in the greater Oslo region to serve Telemark. Providers such as OVHcloud offer dedicated servers that can meet regional demand.
Power Analysis
Norway's power infrastructure is a primary driver for data center investment in regions like Telemark, combining low costs with exceptional reliability and sustainability.
Average Cost Of Power: Industrial electricity costs are estimated between 0.70–0.90 NOK/kWh as of September 2025. This highly competitive rate, driven by a 96% renewable energy mix from hydropower, delivers significant operational savings for power-intensive deployments.
Power Grid Reliability: The national grid is famously stable and well-engineered. Data centers in the region are typically supported by redundant power feeds from multiple substations, ensuring very high levels of uptime.
Market Access, Business & Tax Climate
Telemark provides a strategic location for serving both Norwegian and broader Northern European markets while benefiting from a stable and predictable business environment.
Proximity To Key Business Districts: The region is strategically located to support industrial and manufacturing sectors in Southern Norway. Proximity to cities like Skien and Porsgrunn allows data centers to serve local enterprise and public sector clients effectively.
Regional Market Reach: From Telemark, digital services can effectively reach the entire population of Norway and serve as a secondary disaster recovery site for primary European markets like London, Amsterdam, and Frankfurt.
Tax Advantage For Data Centers: Norway's primary financial advantage comes from its exceptionally low electricity tax for data centers, not from direct tax credits or incentives. This focus on reducing operational expenditures provides a clear and sustainable long-term cost benefit for operators.
Natural Disaster Risk
Telemark is situated in a region with a very low risk of natural disasters, contributing to its appeal for mission-critical infrastructure that requires maximum uptime.
Based on the INFORM Risk Index, the region has an overall risk score of 1.9 out of 10, classifying it as a "Very Low" risk environment as of September 2025. Key natural hazards are minimal and include:
- Coastal Flood: 6.6/10 (Primarily affecting coastal areas, indirect risk to inland infrastructure)
- River Flood: 5.9/10
- Drought: 2.2/10
- Earthquake: 0.4/10
Risks from tsunamis and tropical cyclones are negligible for this location.
