May 26, 2026– Vattenfall and Nscale have inked a long-term renewable power purchase agreement (PPA) for the first phase of Nscale’s data center development in Kvandal, outside Narvik. The companies announced the information in a press release.
The agreement covers a significant share of the power demand for the period from 2027 to 2031. Additionally, it includes the supply of 100% renewable energy.
Nscale, formerly Aker Nscale, develops large-scale AI infrastructure. The company’s data center facility in Kvandal is initially planned with a capacity of 230 MW. Also, the facility has potential for further expansion.
“I am very excited over this new partnerships with Nscale. The Nordics offer strong conditions for sustainable data centers. Through long-term electricity agreements, energy-intensive and fast-growing industries gain predictability and security in an increasingly volatile energy market”, stated Ronny Brunstad, Managing Director Vattenfall Norway.
The companies point out that the Nordic region is well-positioned for data center development. This is attributed to access to renewable energy, well-developed infrastructure, and a cold climate.
The agreement is intended to support parts of Nscale’s European AI Infrastructure Initiative.
“We are very pleased to have this agreement with Vattenfall secured as we progress towards operations in Kvandal, outside of Narvik. Our success in developing large scale AI infrastructure in Norway and Europe depends on trusted partners throughout the value chain, and renewable electricity is a vital part of our business model”, says Stian Jenssen, Managing Director for Nscale Scandinavia.
May 12, 2026
Nscale, the vertically integrated AI-infrastructure company, has secured an additional $790m of debt financing to continue constructing its AI data centre in Narvik, northern Norway. This was revealed by the company said on Monday.
The committed facility was provided by ABN AMRO, DNB, Eksfin (Export Finance Norway) and Nordea, with Skandinaviska Enskilda Banken (SEB) acting as Mandated Lead Arranger alongside the bookrunner banks. Additionally, AMRO, DNB, and Nordea acted as Bookrunners on the trade.
Also, alongside the committed amount, the facility carries an uncommitted accordion feature of a further $790m. This has been earmarked specifically to finance a 115MW expansion at the Narvik site. Also, Nscale described the Narvik project as the largest AI-infrastructure investment in Norway.
Funding of the Project
The financing builds on a year of rapid funding momentum at Nscale. The company closed a $2bn Series C in March 2026, led by Aker ASA and 8090 Industries, and signed a $1.4bn delayed-draw term loan in February 2026.
Morover, the Norwegian funding follows a recently signed agreement with Microsoft covering the Narvik campus.
Josh Payne, who is Nscale’s founder and CEO, stated in the announcement that the combination of recent financing rounds positions the company “at the forefront of global AI infrastructure. It also positions the company infront in delivering scalable, high-performance capacity to meet rapidly growing demand for our services.”
Nscale Expands its Footprint in Europe
Additionally, the Narvik site is part of Nscale’s broader European data-centre footprint. The footprint includes a separate flagship build in Portugal at Start Campus’s Sines site. In a separate announcement, Nscale committed to supplying 66,000+ Nvidia Rubin GPUs to Microsoft at the Portuguese site. The deployment will start in late 2027. This project shows how Nscale is catching up with the boom of data centers in Europe.
Also, Nscale has a 1.35 GW commitment with Microsoft, Nvidia, and Caterpillar at a flagship AI campus in West Virginia under. The project is under the Monarch name.
Moreover, Nscale describes itself as vertically integrated, with operations spanning energy, data centres, GPU compute and software. The company serves AI-native customers, enterprises, and governments, and emphasises operational efficiency and reliability as core selling points for those buyers.
Furthermore, the bank syndicate behind the Norway facility is itself notable. ABN AMRO, DNB, Nordea and SEB are among the largest project-finance banks in the Nordic region; Eksfin’s involvement reflects Norwegian state-backed export-finance support for data-centre infrastructure that uses Norwegian power and labour.
Favourable Weather Conditions for the Narvik Project
The Narvik project benefits from the region’s cold climate and access to substantial Nordic hydropower capacity.
However, Nscale did not disclose the tenor, pricing or covenant terms of the new financing, nor the targeted operational date for the 115MW Narvik expansion. The company has not commented on whether the accordion feature is expected to be drawn within a specific window.
Lastly, as this data centre sets foot in Norway, the project will need to get powered in order to operate smoothly. This power can be sourced from the renewable energy projects in the country.
Project Factsheet
Location: Kvanndal, Narvik (Nordland), Norway
Developer: Nscale (London-based AI infrastructure provider)
Primary Tenant: Microsoft (Multi-year off-take agreement)
Total Funding: $3.4B+ (including a $2B Series C and $790M expansion loan in May 2026)
Capacity & Scaling
- Initial Planned Power: 230 MW.
- Expansion Roadmap: Secured funding for an additional 115 MW expansion (bringing the immediate target to 345 MW).
- Future Potential: The site has a long-term build-out plan reaching up to 520 MW (230 MW base + 290 MW planned expansion).
- Compute Hardware: The site is specifically optimized for NVIDIA Vera Rubin GPUs. Also, it is slated to host approximately 30,000 Rubin GPUs alongside an existing 2025 arrangement for 52,000 NVIDIA GB300 GPUs.
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