Major changes for data centres in Norway announced today by the government and Statnett
Today, 9 November 2026, two announcements were made that will have a major impact on the data centre industry in Norway going forward. In this newsletter, we examine what the recent announcements mean for you.
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The two announced changes are:
- Government announces licensing scheme for data centres:
The Government intends to make Norway the first country in Europe to introduce a licensing scheme for data centres. The aim is to ensure national control over development and to prioritise data centres that contribute to digital security and resilience, as well as AI computing capacity in Norway, the Nordic region and Europe. The scheme will exclude data centres involved in cryptocurrency mining, but there are still many unanswered questions regarding how societal benefit will be assessed under the licensing scheme. At today’s press conference, the Government indicated that licence conditions may be introduced requiring data centres to make part of their capacity available for public purposes critical to society. The licensing scheme is intended to cover both existing and new data centres, and existing data centres are to be protected by “robust transitional rules” drawn up following dialogue with the industry. It is as yet unclear what such transitional rules will entail. Minister Michaelsen acknowledged at the press conference that the proposal raises difficult issues under EEA law, but the Government is confident that it will be possible to put a licensing scheme in place (Read more in section 1 below). - Statnett introduces a temporary halt to new capacity reservations for data centres:
This morning, Statnett announced a temporary complete halt to new power grid reservations for data centres until 1 August 2027. At the same time, the processing of applications for approval of facility functionality for data centres has been suspended. Statnett will use the time until August to put in place measures and rules to ensure that connection does not create unmanageable consequences for the power system and will engage in dialogue with other Nordic and European TSOs. No one will be allowed to jump the queue ahead of data centres during the suspension period. (Read more in section 2 below).
Today’s announcements signal significant changes to the regulatory framework for Norwegian data centres. The Government’s press conference and press release signal change and tighter regulations without providing sufficient details to work with. This undermines predictability and makes it challenging for developers and investors who must make decisions in the coming period and are under pressure to maintain momentum. The licensing scheme will need to be assessed in the light of both the Energy Act and the EEA Agreement. Key questions will be whether the scheme is non-discriminatory, based on sufficiently clear and objective criteria, underpinned by sufficiently compelling public interests, and no more restrictive than necessary. A scheme that addresses demonstrable security and emergency preparedness considerations and objectively justified limitations on grid capacity is likely to stand up better than a scheme based on an open-ended assessment of ‘public benefit’ to determine which business models or customers should be favoured.
The most vulnerable elements are likely to be a preference for customers based on nationality or location, a broad and loosely structured exercise of discretion regarding which operators are considered ‘beneficial’, or a refusal that requires an established data centre to close or terminate customer relationships without less intrusive alternatives and transitional arrangements being considered. The announcement indicates that there is a real risk of regulatory changes, but it is too early to conclude whether a specific shutdown or customer restriction would be legally tenable without knowing the proposed rules and the documentation underpinning them. The practical consequences will depend both on how far each individual project has progressed and on how the authorities formulate the licensing criteria and transitional arrangements.
The Government, represented by the Minister for Digitalisation and Public Administration and the Minister for Energy, held a press conference this morning. The ministers began by emphasising that the Government had received notification from Statnett regarding the temporary suspension of connections for data centres that has now been introduced, and that the Government considered it natural to announce its work on the regulation of data centres at the same time. The ministers also emphasised that Statnett had taken the decision on an independent technical basis.
The ministers then put forward several proposals designed to ensure what the Government refers to as the controlled growth of socially beneficial data centres in Norway. Below are the key points and an overview of what has been clarified and what remains unresolved.
The Government will investigate and introduce a licensing scheme for data centres
The Government will investigate and aims to introduce a licensing scheme for data centres in Norway. According to the ministers, Norway is the first country in Europe to consider such a licensing scheme. The ministers emphasised that such a licensing scheme is legally unprecedented and will raise difficult issues under EEA law. Parallels were drawn with the licensing schemes in the aquaculture and oil and gas sectors. The ministers did not mention that these schemes concern national control over natural resources, which have a special status under EEA law – in contrast to a licensing scheme for data centres, which is largely a matter of business regulation with no direct link to natural resources.
The review of the licensing scheme is underway, and the Government has announced that it aims to present the main principles in autumn 2027. The ministers also emphasised that the scheme will apply to both new and existing data centres, but with what the Government describes as robust transitional arrangements. It also became clear that no lower threshold – in terms of power output or other criteria – has yet been set to determine whether a data centre will be covered by the licensing scheme.
A key factor in the licensing assessment will be whether the data centre can be regarded as critical to society. In this context, the ministers highlighted data centres that operate services for critical societal functions such as the police, defence and the health service, including the AI computing power utilised by these services. At the opposite end of the scale, data centres for cryptocurrency mining were mentioned, which in practice will be prohibited under the proposed licensing scheme. Later in the press conference, it was also mentioned that AI computing power used by businesses and private individuals in Europe may be regarded as critical to society.
The Government also suggested that a possible licensing condition could require data centres to make part of their computing capacity available for Norwegian and European digital security, emergency preparedness and academia. The scope of such a requirement and how it would be implemented or enforced were not discussed in detail.
Between these two extremes, it remains rather unclear where the line should be drawn for data centres of public benefit. For example, AI computing power used by businesses and private individuals in Europe was mentioned as a possible candidate for what might be considered of public interest. Nor was the content of the so-called robust transitional arrangements for already established data centres clarified, and there therefore remains uncertainty regarding the current established data centre sector.
Possible new requirements for cost recovery for grid and system costs – and contributions to new power generation
The ministers emphasised that large electricity consumers may have to cover a larger share of the infrastructure costs they impose on the electricity grid. It is desirable to avoid new, large-scale consumption by data centres being borne by the public through increased grid costs. They therefore emphasised that large consumers may have to pay for the system costs they impose on the electricity grid. System costs are a collective term for Statnett’s costs, as system operator, in maintaining the electrical balance of the electricity grid; these largely comprise costs associated with ramping up and down generation and consumption – so-called balancing costs – as well as certain costs relating to the management of bottlenecks, voltage support and emergency preparedness.
A dialogue with the data centre industry was also announced regarding how it can contribute to new power generation. The Minister for Energy gave the example that a new 400 MW data centre would find it easier to obtain a licence if it simultaneously contributed equivalent new power generation, such as an ‘off-grid’ gas-fired power plant with carbon capture and storage. The fact that it is off-grid – i.e. not connected to the ordinary electricity system – means that the data centre will not result in increased grid and system costs for the community. Both offshore wind and gas-fired power with carbon capture and storage were cited as examples.
Prioritisation of consumption critical to society in the grid queue
The Government will prioritise consumption that is necessary for societal development and for society to function, ahead of other consumption. The Government states that it will swiftly review changes to the requirements regarding the type of consumption for which grid operators must reserve capacity (so-called ‘ordinary consumption’). Grid operators are currently required to reserve capacity for ordinary consumption (less than 5 MW in the transmission grid and 1 MW in the regional grid) under section 3-2a of the Regulations on Grid Regulation and the Energy Market (the ‘NEM Regulations’). The Government aims to ensure that these rules also cover small-scale storage and processing capacity that is essential for supporting critical societal functions. In practice, this will mean that certain types of data centre capacity will no longer have to queue for grid access.
Regulatory functional requirements
Following on from Statnett’s announced suspension of new connections and its assessment of new requirements for data centres, the Government is announcing regulatory functional requirements for connections, likely through amendments to the System Responsibility Regulations. According to the Government, the aim is to ensure that connected consumption does not jeopardise the stability of the power system. The content of such regulations has not yet been clarified, but the ministers stated that any relevant regulatory changes will be sent out for consultation before they are potentially adopted.
Modernisation of the connection obligation
The Government intends to modernise the regulations that impose an obligation on grid operators to connect consumers to the electricity grid, so that they are better adapted to the actual situation we face, where the grid queue far exceeds what is possible to manage. It is unclear exactly what this entails, but it is likely to involve moderating what is currently, in practice, an absolute connection obligation for grid operators regarding all new consumption, so that it becomes more conditional.
Consideration of the distinction between new large-scale consumption and significant increases in existing consumption
This point was not elaborated on during the press conference, but it is reasonable to assume that the Government believes that increases in existing consumption will generally be easier to manage, and that in specific situations such increases may be given priority over the establishment of new consumption. It is also conceivable that this is linked to a desire to protect traditional industry.
Assessment of state ownership in data centres
The ministers stated that the government will examine models for state ownership in what were described as data centre projects of particular public benefit. Such projects were not specified in detail, but it is natural to think of projects that are essential for the aforementioned sectors: the police, defence, healthcare and so on.
Timeline
With the exception of the assessment of prioritising consumption critical to society – where the Government states that it will consider possible changes ‘promptly’ – the implementation timeline is likely to be relatively long. For the licensing scheme, it is proposed that “key points” be presented in autumn 2027, which suggests that a final draft bill is unlikely to be ready before 2028, followed by a consultation round and any necessary adjustments. The draft bill will then be tabled and debated in the Storting. It is therefore not unlikely that a new licensing regime will not be in place until around 2029. Thereafter, as the ministers have indicated, there will likely be a shorter or longer period of transitional arrangements for existing data centre operators.
In a press release published on 9 November 2026, Statnett announced that the company is introducing a temporary suspension of new grid capacity reservations for data centres. The suspension applies to connections exceeding 100 MW where Statnett is responsible for processing the applications. In addition, the processing of new applications for approval of facility functionality under section 14 of the Regulations on System Responsibility (fos) is being suspended. The processing of applications already received for approval of facility functionality for direct connection to the 420 kV grid is also being suspended. The suspension is justified by the need to ensure sound system operation whilst the necessary functional requirements and compliance mechanisms are being developed. Statnett expects the temporary suspension to be lifted by 1 August 2027 at the latest, at which point it will be replaced by measures and a framework ensuring that data centres can be connected with manageable consequences for the power system and system operation.
Statnett emphasises that existing connections are not affected, and that facilities for which the necessary functional requirements have already been approved may be connected. Statnett stresses that this measure does not constitute a general suspension of connections.
Applications for connection to the regional grid that have already been received, are currently being processed and relate to facilities with a planned commissioning date in the near future, will continue to be processed. Statnett will also consider processing individual applications for smaller facilities with a planned connection date up to 1 August 2027.
Statnett emphasises that available capacity shall not be allocated to other customers if this would be to the detriment of data centres that are ahead in the queue. In practice, this can hardly be interpreted otherwise than to mean that no new reservations will be granted until the suspension is lifted where data centres are in the queue – which, in practice, is the case in large parts of the country.
As the rationale for the decision, Statnett points to the data centres’ high power demand, large and rapid changes in power consumption, and high vulnerability to grid disturbances. Statnett indicates that the requirements currently being developed may, amongst other things, relate to whether the facilities are to remain connected during operational disruptions, how rapidly consumption can change (‘ramping’), and technical measures to counter oscillations in the grid resulting from rapidly varying power draw. The requirements will be put out for consultation and must be approved by the Norwegian Energy Regulatory Authority (RME) before they are introduced.
Statnett does not go into further detail regarding what the requirements might specifically entail. Nor does Statnett state that the requirements will apply only to data centres that have not yet been established, which suggests that the forthcoming requirements may, in principle, also affect already established data centres.
The announced suspension will delay data centre projects that have not yet been granted a reservation and may also have consequences for projects with reserved capacity if the necessary functional approvals from Statnett are not in place. It is also reasonable to assume that the requirements will have financial implications, both in terms of investment in infrastructure and possible restrictions on the consumption profile, including upward and downward adjustments to power consumption.
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