Microsoft has entered into a five-year agreement with Nscale Global Holdings and Aker ASA in Norway. This is to lease hyperscale AI computing infrastructure worth USD 6.2 billion. The project will be situated in Narvik, in northern Norway. And it will be entirely powered by renewable energy. The size of the project makes it one of the most significant AI infrastructure investments in Europe thus far.
The facility under development is being referred to as “sovereign-grade” and hyperscale. It means it will be able to run some of the most resource-intensive AI workloads, from large-scale training. And inference to more complex machine learning workloads. Construction is anticipated to start in 2026, with phased rollouts that will slowly bring the capacity online.
Microsoft Focusing on Sustainability & Sovereignty
Among the most interesting elements of the agreement is its focus on sustainability. Norway’s rich supply of hydropower makes it a world leader in renewable energy production. Microsoft runs the facility on 100% renewable grid electricity. This is to ensure its AI work in Narvik is climate-aligned, while also taking advantage of the country’s low energy costs.
The selection of Narvik is strategic. In addition to cheap, clean power, the area has a solid industrial base, a well-educated workforce and good infrastructure. This site enables Microsoft to double down on its commitment to building sustainable AI infrastructure. While keeping data and compute resources under sovereign European control. It is a rising priority in an era of data localisation and increasingly stringent regulatory environments.
Renting vs. Building: Microsoft’s Strategic Play
Microsoft has taken a hybrid approach of renting capacity from third-party infrastructure providers that it trusts, such as Aker and Nscale. This gives Microsoft a certain amount of flexibility. It can have access to enormous compute resources without having to carry the entire capital burden of building and operating over the long term.
The move also highlights the insatiable demand for AI compute. Training state-of-the-art models, scaling inference workloads, and delivering AI-powered cloud services requires more GPU and accelerator capacity than ever. By obtaining this facility, Microsoft enables its Azure AI platform to take on Amazon Web Services (AWS), Google Cloud. As well as other hyperscale providers that are all racing to win the bulk of AI-driven cloud demand.
This deal highlights a larger industry shift. Instead of trying to handle it all internally, big tech companies are now working with energy-rich nations. And private infrastructure providers to help satiate global compute demand.
Microsoft, Norway, and Europe: Strategic Implications
For Norway, this is a historic moment in the making. It solidifies the nation’s position as a prime location for hyperscale AI infrastructure. Due to its clean power, competitive energy prices, and stable industrial environment. Especially Narvik could get a focus for AI data centre expansion, with possibilities for jobs, technology cooperation and more capital.
For Microsoft, the Narvik site helps address critical European priorities:
Data Sovereignty: By hosting compute resources in Europe, Microsoft can better comply with EU regulations around data handling and privacy.
Latency & Performance: Locating infrastructure closer to European customers reduces latency and improves AI service performance.
Resilience & Control: Having capacity inside Europe mitigates risks tied to global supply chains, geopolitics, and transatlantic dependencies.
To Conclude
Microsoft’s agreement with Aker and Nscale is a breakthrough for the future of AI infrastructure in Europe. With a $6.2 billion investment over five years, Microsoft is betting heavily on its AI goals while also supporting sustainability and sovereignty objectives.
The initiative demonstrates how clean energy, regulatory coherence and strategic geography can transform places like Norway. Into a significant contender in the global AI race. For Microsoft, the acquisition guarantees it access to a vast amount of compute power just as the demand is going through the roof. For Europe, it’s a sign of moving toward a more self-sufficient AI infrastructure.
If it succeeds, this project could serve as a model for similar efforts across the continent. Driving competition, investment in renewable-powered AI facilities, and innovation in energy-efficient AI hardware. As AI plays an ever-larger role in industries and societies, partnerships like Microsoft’s with Aker and scale will determine how the future of intelligent computing takes shape.
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