Akranes municipality backs plans for new data centre area

Akranes municipality and a company owned by Alexander Eiríksson, Bjarni Ármannsson and Benedikt Bjarnason have signed a letter of intent to develop a data centre area in Grjótkelduflói in Akranes, mbl.is reported.

The company’s owners will lead preparations and development of the project in cooperation with the municipality. The data centre area is expected to be built in independent phases, which will be brought into use as the project progresses.

The plans place strong emphasis on using waste heat from the data centres, including to produce hot water. The parties also aim to develop businesses that can use the heat, such as food production, greenhouse cultivation and other heat-dependent activities.

The project could improve energy use, create additional value and support more diverse employment in Akranes. The parties expect the development to generate a number of specialised jobs, while many people would also be involved during the construction period.

“There is enormous growth in data centre development at present, partly because of the rapid advancement of artificial intelligence,” Akranes Mayor Sturlaugur Haraldsson said. He said the area was well suited to this type of activity and that Akranes was conveniently located. He also said the area offered stability in terms of volcanic activity.

Haraldsson said recent advances in using waste heat from data centres created opportunities for further development in diverse industries and could help energy be used more economically and sustainably.

“This is an ambitious and exciting project that could have a significantly positive impact on business and society in Akranes,” he said.

Bjarni Ármannsson said the location, the conditions for phased development and the potential to use waste heat created a strong foundation for a project that could attract investment and support a diverse business sector in the future.

The letter of intent is valid for 24 months. The parties aim to reach an agreement on the project’s continuation and more detailed arrangements within that period.