New resolutions on data centres from the Norwegian Parliament: The Government to assess impact of further development and propose ban on new data centres for crypto mining

The Parliament adopted two resolutions:

1. Societal impact review: The Parliament has asked the Government to assess the societal utility of various data centre developments and their effects on employment, value creation, civil preparedness, security, and other societal areas, including, notably, the power system, and to report back to the Parliament in an appropriate manner.
    
2. Cryptocurrency ban proposal: The Parliament has asked the Government to return with a formal legislative proposal for a ban on the establishment of data centres used for cryptocurrency mining.

The Parliament did not adopt the core proposal of the private member's bill: The introduction of a national licensing system requiring companies wishing to establish a data centre to apply to a national authority (such as NVE) for a concession/permit to establish the relevant data centre. The proposal would also have included criteria imposing requirements on societal utility, transparency regarding ownership of the data centre and its customers, and utilisation of waste heat.

Accordingly, the existing framework remains in place for now: It is currently up to the individual municipality, through the Planning and Building Act, to decide whether a data centre may be built. Further, The Norwegian Water Resources and Energy Directorate makes decision on infrastructure licenses, and the regional and national grid companies (TSO) assess and decides whether there is sufficient available grid capacity. There is no national coordination or control over how many data centres are to be established, where they are to be located, or whether they should be established at all.

Background and Context

The proposal was motivated by the rapid growth in planned data centre capacity in Norway. If left unaddressed, data centres are projected to increase their electricity consumption from the current 2 TWh to 8–10 TWh by 2030.

The proposal also highlighted concerns around transparency: the customers of data centres are often unknown to municipalities and their elected representatives, which the proposers described as untenable.

At the same time, the proposal acknowledged the legitimate and important role data centres play: There is a genuine need for data centres to ensure national control over data and to meet Norway's societal requirements for data storage, including from a security perspective.

Our View

We welcome the Parliament's measured approach. The rejection of a blanket national licensing regime preserves the flexibility that responsible data centre operators need to plan and realise their projects. At the same time, the Government's mandate to assess the societal benefits and impacts of data centre developments signals that the regulatory landscape will continue to evolve, and operators should be prepared.

The proposed ban on cryptocurrency data centres is a separate matter, and we will monitor the Government's forthcoming legislative proposal closely.

Schjødt has extensive experience advising on all aspects of data centre development in Norway, including site acquisition, power procurement, planning and permitting processes, corporate structuring/m&a, and commercial contracts. As the regulatory framework develops, we are well placed to help operators, investors, and landowners navigate what lies ahead.

Read more about our expertise with date centres.