Microsoft, Nscale Global Holdings, and Aker ASA have inked a five-year, $6.2 billion agreement to develop Europe’s next-generation hyperscale AI infrastructure in Narvik, Northern Norway. The contract marks a major milestone in European-owned AI compute capacity, with staged deployments starting in 2026.
The project promises high-performance AI infrastructure powered entirely by renewable electricity, turning Norway’s hydro resources into strategic, sovereign AI capacity.
A Strategic Hub for AI in Europe
“This demonstrates our unwavering commitment to customers in Norway and across Europe,” said Jon Tinter, Microsoft’s President of Business Development and Ventures. “We’re inspired by how Nscale and Aker are advancing AI infrastructure powered by renewable energy, and we’re excited to bring scalable, sustainability-driven AI to Microsoft Cloud customers.”
Josh Payne, CEO of Nscale, highlighted the scale of the deployment: “Delivering one of the largest GPU deployments in the world reflects unprecedented demand for compute and confirms Narvik’s role as a strategic hub for AI in Europe. This agreement establishes a new benchmark for AI infrastructure.”
Øyvind Eriksen, CEO of Aker, emphasized the sovereign and sustainable angle: “It underscores our ambition of converting clean hydropower into strategic digital capacity, positioning Narvik as a launchpad for Europe’s sovereign cloud. Norway is stepping into a new era of digital, secure, and globally relevant value creation.”
Why It Matters
The deal positions Norway as a key player in Europe’s AI ecosystem, combining renewable power, industrial readiness, and high-performance computing to serve global AI workloads. Microsoft gains access to vast AI compute capacity, helping it deliver advanced AI services across the continent while meeting sustainability goals.
The Aker-Nscale joint venture is expected to be formally established in Q3 2025, and cash flows from the contract will fund the project’s capital expenditures. This partnership reflects growing demand for sovereign, sustainable, and scalable AI infrastructure in Europe.
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