Norway Warns Data Centers Could Use 25 TWh of Power by 2035

Norway’s energy regulator warned on October 29, 2026, that data-center electricity consumption could rise from approximately 3 terawatt-hours annually to as much as 25 TWh by 2035 if projects with reserved grid capacity are fully developed. The finding comes from a new Norwegian Water Resources and Energy Directorate (NVE) report examining how fast-growing electricity demand could weaken the country’s power balance.

Norway data center power demand is becoming a significant infrastructure issue as AI computing facilities compete with industrial electrification and other electricity users. Although Norway benefits from substantial hydropower production, the regulator warns that rapid demand growth combined with limited new generation could create electricity deficits and higher prices.

Norway Data Center Power Demand: What NVE Found

NVE published its 2026 electricity market scenarios on October 29, assessing the possible impact of expanding data centers, additional climate measures and limited new wind-power generation on Norway’s energy system through 2035.

The report distinguishes between several development paths. Its earlier baseline assumed data-center consumption of approximately 8 TWh by 2035. An updated data-center scenario places consumption at 14 TWh, while an upper scenario reaches approximately 25 TWh.

Source: NVE Report 37/2026, Scenarioer for kraftmarkedet 2026. The 2035 figures represent different analytical scenarios, not guaranteed consumption levels.

The original NVE report explicitly cautions that these scenarios are not forecasts of the most likely outcome. They illustrate how the electricity system could respond under different assumptions.

Data Centers Have Reserved Around Half of Norway’s Grid Capacity

One of the report’s most significant findings concerns grid reservations rather than operating data centers.

NVE says data centers account for approximately half of Norway’s reserved electricity-grid capacity. As of August 2026, around 4 gigawatts of capacity had been reserved for data-center projects in existing and planned networks.

Roughly one-third of that capacity is associated with existing grid infrastructure, while two-thirds depends on planned network development.

This distinction matters. A reserved grid connection is not evidence that servers have been installed, that a facility is operational or that its full electrical load is already being consumed.

NVE’s upper scenario assumes substantial realization of projects with reserved capacity and a 70% utilization factor. Many proposed facilities remain dependent on future grid construction, financing and commercial demand.

Why Norway Could Face an Electricity Deficit

Norway’s hydropower-dominated electricity system typically produces around 15 TWh more electricity than it consumes in a normal year, according to NVE.

However, the agency warns that a combination of strong consumption growth and limited new generation could erode that surplus.

In one adverse scenario, Norway’s electricity balance falls to approximately negative 4 TWh in a normal year by 2035. The same analysis finds that electricity imports could become considerably larger in individual unfavorable years.

These findings depend on the combined assumptions used in the scenarios. They do not establish that data centers alone will cause a national power shortage.

Electricity availability has already become a critical issue for large AI projects elsewhere in Europe. Servers.News previously reported on Microsoft’s withdrawal from a planned UK AI data-center agreement amid substantial grid-connection delays.

Grid Reservations Are Becoming a Strategic Resource

As large AI facilities require more electricity, securing a grid connection can become as important as obtaining GPU hardware or a suitable building.

The challenge is not identical across European markets. French cloud provider OVHcloud, for example, recently disclosed 110 MW of unused grid-connected capacity within its existing infrastructure portfolio.

That capacity represents an expansion resource, although it does not automatically translate into installed GPU servers.

For Norwegian developers, the distinction is particularly significant because much of the reserved capacity depends on network infrastructure that has yet to be completed.

Political Pressure Builds Over New Data Centers

The report has also intensified debate over how Norway should allocate electricity among competing industries.

Reuters reported on October 29 that Norway’s Red Party intends to propose a halt to new data-center permits and construction during a parliamentary debate.

The proposal has not been adopted, and sufficient parliamentary support remains uncertain.

Norway’s government is separately examining measures to prioritize strategically important data-center projects and assess their consequences for the electricity system.

Similar debates are emerging internationally. In the United States, federal regulators recently rejected parts of PJM’s proposed data-center power-curtailment framework while allowing new reporting requirements for large electricity users.

What This Means for AI Infrastructure Developers

The NVE analysis reinforces several distinctions that matter when assessing future data-center capacity:

• Reserved electricity capacity is not operating capacity. Developers still require completed infrastructure and commissioned facilities.
• Annual electricity demand differs from peak power. Gigawatts measure power capacity, while terawatt-hours describe energy consumed over time.
• Power availability is a regional constraint. National electricity surpluses do not guarantee sufficient connection capacity at every site.
• Infrastructure forecasts require caution. Not every announced or grid-reserved data-center project will necessarily proceed.

What Happens Next?

Norway’s next decisions will involve electricity-grid development, power-generation investment and the political framework for allocating capacity to new large users.

The proposed parliamentary debate may indicate how strongly policymakers intend to intervene, but no national ban on new data centers has been confirmed.

For infrastructure operators, NVE’s October 29 report demonstrates that the long-term development of AI computing depends on more than purchasing accelerators. Electrical infrastructure, realistic demand assumptions and grid access are increasingly central to whether planned computing capacity becomes operational.