Data Centre Industry Rapidly Expands Across Iceland

2026-03-10 - 13:56

Iceland’s data centre industry is expanding quickly, with rising export revenues and a growing workforce, according to industry figures and recent economic analysis. As reported by RÚV, companies operating large-scale facilities in Iceland include Verne Global, Borealis Data Center, and atNorth, which run sites in locations such as Reykjanesbær, Reykjavík, Akureyri and Blönduós. What's the Story? Growth in Iceland’s data centre sector with operations by Verne Global, Borealis Data Center and atNorth across several locations Export revenues from telecommunications, computer and information services at about ISK 110 billion last year Employment at Icelandic data centres rising from 85 in 2022 to 120 in 2024, based on figures from the A man analyses data on a computer screen. Photo: Rawpixel. Public domain. Sector growth continues The sector has attracted increasing investment in recent years, including the recent sale of atNorth. Björn Brynjúlfsson, CEO of Borealis Data Center and chair of the Icelandic Data Center Association, said Iceland benefits from favourable conditions for operating such facilities. “Generally, the conditions here are excellent. The temperature is such that our summers are rather cold but at the same time the winters are mild, so it is a fairly even temperature throughout the year, and this essentially means that cooling here can be done in a more economical and environmentally friendly way than in most other places in the world,” says Björn Brynjúlfsson. Industry data cited by Íslandsbanki indicates export revenues from telecommunications, computer and information services reached around ISK 110 billion last year, a 50 percent increase on 2024. Investment in the sector exceeded ISK 40 billion during 2024. Employment has also risen. The Icelandic Data Center Association reports that 120 people worked at Icelandic data centres in 2024, compared with 85 in 2022. Björn said clearer government policy could further support the sector’s development. “However, I would say that the other Nordic countries have perhaps been more advanced in setting a clear policy on how data centers should be built into the industrial landscape.”