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New data center to tap into geothermal and hydropower by Landsvirkjun in Iceland

New data center to tap into geothermal and hydropower by Landsvirkjun in Iceland Pipes at Krafla plant, Iceland (source: flickr/ Andrea de Poda, creative commons)
Alexander Richter 28 Feb 2020

A new power purchase agreement has been signed between Iceland's national power company and a new data center in Reykjavik, Iceland. Landsvirkjun generates electricity from hydropower and geothermal power plants in the country.

Iceland’s national power company Landsvirkjun, and Reykjavík Data Center (Reykjavík DC), a high-performance computing data center, have announced the signing of a Green Power Purchase Agreement guaranteeing certified renewable energy at the data center. Located in Reykjavík, the data center will utilize 100% hydro-electric and geothermal renewable energy from Landsvirkjun in Iceland.

With this agreement, Reykjavík DC becomes Landsvirkjun’s fourth customer in the data center industry. A large-scale, sustainable and state-of-the-art data center, Reykjavík DC offers its clients a range of bespoke server density options and hosting environments that are all fully scalable and provided without extra expense by using 100% natural, ambient cooling. The data center also provides its clients with various services on demand in verticals such as the financial, government, telecom, automotive, and medical sectors.

This agreement with Landsvirkjun will enable the Reykjavík Data Center to issue green bonds to finance further expansions as part of its green focus. The electricity covered by the agreement will be delivered from Landsvirkjun’s current power system, which has significantly increased its capacity in recent years by introducing new hydropower, geothermal energy and wind power stations to provide renewable energy.

The data center industry is one of the fastest growing industries in the world, and Iceland is a prime location for clients looking to develop more sustainable data centers. With low corporate tax, efficiency in a European legislative framework, and vast availability of land for development, Iceland offers a favorable environment for customers and businesses. Its naturally cool climate keeps energy levels low for data centers, and its abundance of renewable energy sources further ensures the most cost effective high-energy use.

Hörður Arnarson, CEO at Landsvirkjun, said, “We are excited to welcome Reykjavík DC to our growing number of customers and to support the continued growth of the data industry in Iceland. This contract confirms the ongoing demand for renewable energy from Landsvirkjun, as well as Iceland’s contribution to the data center and renewable energy industries.”

Gísli Valur Guðjónsson, Chairman of the Reykjavík DC board, added, “This data center meets the highest customer standards and is strategically located to ensure secure power security from the grid, offer efficient transport routes, and lower any risk of natural disaster. Our agreement with Landsvirkjun is a milestone for the industry and a crucial response to the ongoing demand for a high-tech data center in the capital area. The companies behind the data center are well-established in the Icelandic market, and with this project becoming a reality, we are now in a strong position to attract new customers both in Iceland and abroad.”

Source: Company release