$6.2 billion contract secures 100% renewable energy-powered AI computing capacity for Europe.
Partnership with Nscale and Aker advances Europe’s sovereign cloud ambitions.
Project leverages Norway’s hydropower, industrial base, and cool climate to support energy-intensive AI workloads.
Microsoft has signed a $6.2 billion agreement with AI hyperscaler Nscale and Norwegian industrial investment company Aker to secure AI computing capacity entirely powered by renewable energy. The deal, spanning five years, provides infrastructure from “Stargate Norway,” a major new project designed to anchor Europe’s sovereign AI capacity.
The partnership builds on the joint venture announced in July between Nscale and Aker, aimed at developing large-scale AI infrastructure in Northern Norway. The site is targeting 100,000 NVIDIA GPUs by 2026, positioned to meet soaring demand for energy-efficient AI workloads.
Norway’s Strategic Role
The choice of location reflects both resource availability and strategic positioning. The region’s abundant hydropower and low local electricity demand provide stable renewable energy supply. Its cool climate reduces cooling costs, and its industrial infrastructure supports rapid deployment.
Øyvind Eriksen, President & CEO of Aker, called the agreement “a milestone for the joint venture with Nscale and for Norway’s role in enabling sovereign AI infrastructure.” He added:
“With trusted infrastructure, renewable power, and industrial readiness, Norway is stepping into a new era of value creation – one that is digital, secure, and globally relevant.”
For Europe, the project answers growing concerns over reliance on non-EU data infrastructure, while aligning with the bloc’s energy and digital sovereignty priorities.
Microsoft’s ESG Balancing Act
Microsoft’s expansion of AI capacity comes as the company faces scrutiny over the environmental impact of its data centers. In 2020, the company set “moonshot” sustainability targets: becoming carbon negative, water positive, and zero waste by 2030. Yet its footprint has grown, largely driven by AI-driven data demand.
Earlier this year, Chief Sustainability Officer Melanie Nakagawa acknowledged the scale of the challenge. Alongside investments in carbon removal, Microsoft has introduced policies requiring key suppliers to use 100% carbon-free electricity and created a supplier decarbonization team to address emissions tied to cloud and AI operations.
Jon Tinter, President of Business Development and Ventures at Microsoft, framed the Norway deal as both a growth and sustainability opportunity:
“Adding this facility to our cloud offering in Europe demonstrates our commitment to deliver advanced AI services while building cutting-edge, sustainable infrastructure.”
Implications for Executives and Investors
For C-suites and investors, the agreement illustrates how renewable energy access is becoming a decisive factor in the AI and data infrastructure race. It shows how hyperscalers are seeking long-term contracts in resource-rich regions to balance sustainability obligations with exponential demand for compute power.
The deal also signals how governance and industrial policy are converging with technology and ESG priorities. By converting hydropower into digital infrastructure, Norway positions itself not only as an energy exporter but as a cornerstone of Europe’s digital resilience.
Global Context
The Norway agreement is the latest in a wave of large-scale AI and data infrastructure investments that tie directly to climate and energy policy. As AI adoption accelerates, investors and policymakers are weighing trade-offs between compute expansion, carbon targets, and resource allocation.
With Europe tightening its digital and energy sovereignty strategies, deals like this one will shape how the region balances competitiveness with climate commitments. For global executives, it reflects a broader trend: renewable energy is no longer just a compliance measure, but a prerequisite for scaling the digital economy.
