Norway introduces stricter regulation of data centres

According to Statnett, the suspension is necessary to ensure the secure operation of the power system. Following the suspension, Statnett will propose amendments to the functional requirements for data centres to ensure the secure operation of the power system.

Key takeaways

• The concession scheme will likely be presented autumn 2027, and has no short-term implications for data centres already in operation.
• Statnett’s temporary suspension applies to data centres without a capacity reservation or FOS section 14 approval as of today; data centres in operation are not affected.
• Some uncertainty remains as to which projects are covered, and projects not yet in operation should assess how the suspension affects them.
• Statnett’s new functional requirements will be subject to public consultation and RME approval, giving the industry an opportunity to influence them.

Below, we summarise the key elements of the announcements and their potential implications for data centre operators and developers.

Proposed concession scheme to ensure controlled growth of socially beneficial data centres in Norway

In its press release of 9 November 2026 (available here), the Government stated that it will investigate and assess a concession scheme for the construction and operation of data centres in Norway, to be presented in the autumn of 2027. The Government also stated that transitional arrangements for existing data centres will be developed in dialogue with the data centre industry.

Under the new scheme, concessions will be granted to data centres that serve the “public interest”. According to the Government, the scheme will be designed to distinguish between data centres that serve the society’s interest and those that do not. The conditions for a concession will focus on digital security and preparedness, as well as on contributing to the AI computing capacity needed in Norway, the Nordic region and Europe. The Government has also stated that cryptocurrency mining will not be regarded as serving the public interest.

Once the scheme is in place, no existing or future data centre will be permitted to operate in Norway without a concession.

Further details of the concession scheme have not yet been published.

State ownership and possibilities for off-grid and other solutions for new power production?

The Government has also stated that it will consider state ownership of data centres of particular public interest.

The Government will also, in dialogue with the industry, explore how data centre operators may contribute, on commercial terms, to the power generation required to facilitate larger data centres, including through off-grid solutions such as offshore wind or gas-fired power plants with carbon capture and storage (CCS). At its press conference, the Government indicated that other forms of power generation, such as onshore wind, may also be relevant.

The Government’s proposed changes to grid connection regulation

The Government has stated that it will make the necessary amendments to the energy regulations to enable Statnett to impose the requirements needed for the secure grid connection of data centres, as described below.

To address growing grid connection queues, the Government will amend the grid companies’ obligation to connect new consumption. The amendments will clarify which types of consumption the grid companies are required to reserve capacity for (currently defined as “normal consumption” under the existing regulations), and will ensure that small-scale storage and processing capacity that is essential to critical societal functions is given priority.

The Government has further stated that it intends for new large-scale consumers to bear a greater share of the costs they impose on the power system, including the costs of new grid infrastructure. In this context, the Government will consider whether to differentiate between new large-scale consumption and expansions of existing power-intensive consumption. This would require amendments to the regulations on grid investment contributions (Norwegian: anleggsbidrag).

Statnett’s temporary suspension of grid capacity reservations for data centres until 1 August 2027

Statnett has temporarily suspended further reservations of grid capacity for data centres until 1 August 2027 at the latest. Statnett considers it necessary to ensure the secure operation of the power system.

The suspension applies both to new reservations of grid capacity and to the processing of new applications for approval of facility functionality, which are temporarily put on hold. Statnett states that applications for approval of facility functionality for projects with planned commissioning in the near future that are currently being processed by a distribution grid company will not be affected. Statnett will also consider applications for smaller facilities with planned grid connection before 1 August 2027. This raises further questions regarding which projects will be exempted from the temporary suspension of applications for approval of facility functionality under FOS section 14.

The suspension is a risk-reducing measure for the power system and is intended to remain in effect until Statnett has established new functional requirements for data centres and these have been approved by the Norwegian Energy Regulatory Authority (RME). Statnett has further stated that no new grid capacity will be allocated to other grid customers if this would result in data centres being passed over in the connection queue.

Statnett will propose amendments to the functional requirements for data centres to ensure the secure operation of the power system. The new framework will include both functional requirements for data centres and effective mechanisms to ensure compliance with those requirements.

The functional requirements will include requirements specifying the situations in which data centres must remain connected to the grid during operational disturbances (fault ride-through), requirements on how quickly data centre consumption must be able to change (ramping), and technical requirements that may, inter alia, reduce the risk of data centres causing oscillations in the grid.

The requirements will be subject to public consultation and approval by RME. This gives the data centre industry an opportunity to influence the new regulations. Statnett will seek to harmonise the new requirements with relevant requirements set by other TSOs. The new regulation may also affect data centres that have already obtained approval of facility functionality under the current regime.