The Cost of Norway's Digital Future

By Amalie Hauge

The development of Artificial Intelligence (AI) has developed rapidly over the past few years, and has significantly affected the future prospects, particularly for the younger generation. This strong growth of AI causes a lot of people to reconsider what they should study and which career they should pursue. A study done by Tekna shows that the number of applicants for NTNU’s previously prestigious study program, Data Science, has gone from 409 in 2024 to 196 in 2026. A possible reason for this decline is the fear of studying years for a profession where AI will soon outperform us.

This is one of the visible costs of the rapid development, but there are some more invisible costs as well, for now at least. These are costs that are happening far away from our phones and computers and are happening at data centres, the backbone of data storage and processing.

In Norway there has been a huge increase in data centres over the past years. With this increase a debate arises on whether these centres are they worth it for Norway as a whole. Does the population sacrifice more than we gain?

There is no doubt that these data centres are placing an increasing pressure on Norway’s resources, numbers from NVE shows that the data centres consumed 3.3 TWh of power in 2025, which is double the amount consumed in 2023. This makes the data centre industry the fastest-growing source of electricity consumption in the country.

This increased demand for electricity could affect ordinary consumers, especially those who live close to these centres. With the growth of electricity consumption we are currently looking at, this pressure could contribute to higher electricity prices. Power analyst Katinka Bogaard estimates to NRK that the electricity price will rise to around 70 Norwegian øre per kWh for the consumers based in Rogaland. Power analyst Marius Rennesund estimates around 60 Norwegian øre per kWh, compared to the current price of around 32 øre per kWh. In addition, the need to expand and strengthen the power grid could lead to higher grid fees for consumers.

Electricity consumption is not the only concern, as these data centres can also have an impact on nature and wildlife. Tech giants are buying land of several thousands of acres with building plans, meaning that large areas of forest may be cleared to make room for these data centres. This destroys habitats for wildlife and can cause permanent damage on the surrounding environment.

These data centres need a large cooling system, to prevent the systems from overheating. This system can produce noise levels up to 90 dB, which can also affect the nearby wildlife, which is displaced from the area as the constant high level of noise becomes too disturbing. 

Then there is the huge amount of heat that data centres produce. If it is not taken advantage of and used for something useful, it goes out in the air as waste and may affect the surrounding environment as well. One data centre in Tydal is now using surplus heat to support food production, according to NRK. However, this appears to be the exception rather than the rule. Other centres have either failed to implement plans for using surplus heat, or do not have plans for it at all.

When discussing data centres, one of the most common arguments in their favour is the value they create and the jobs they are expected to bring. However, a recent study from SSB suggests that the situation may not be as straightforward as it seems. The study indicates that value creation per MWh has fallen significantly. While traditional power-intensive industries create values of between 900 and 1,200 NOK per MWh, the figure for data centres is now below 600 NOK per MWh.

In addition, the same study shows that only 677 people were employed by the data centre industry in 2024.  The large facilities have more automation, meaning they typically only require 2-3 employees per MW of capacity. Do these centres then create enough value compared to the amount of electricity they consume and pressure they put on our resources?

When looking at all these factors there is no doubt that Norway is standing in an important crossroad. Data centres are important for our digital infrastructure, but the expansion is happening so quickly that it is becoming increasingly difficult to control the consequences. Norway risks undermining one of its greatest advantages of access to relatively cheap and clean electricity.

Should Norway implement a moratorium on new data centres until we have found better solutions to these problems?

The question remains if we are using our common resources well, or are we letting these huge tech companies come into Norway and take advantage at a price that is paid by the people living here?