Adomat sues Borealis for nearly 900 million kroner

Borealis Data Center, which operates a data centre in Blönduós, is being sued for alleged breaches of a lease agreement, mbl.is reports. The main hearing at Reykjavik District Court began on Tuesday.

The claim was brought by Adomat and Heidenblut M 1 ehf, a company owned by German investors linked to the CT Cap group. The dispute concerns a June 2022 agreement under which Adomat leased Borealis nearly 2,000 specialised computers for use at its data centre.

Adomat says Borealis stopped paying monthly rent towards the end of 2022 and has since neither paid the rent nor returned the equipment. The claim is for more than 6.57 million US dollars, equivalent to nearly 900 million Icelandic kroner, plus interest.

Adomat said attempts to resolve the dispute and recover the equipment between 2023 and 2025 were unsuccessful because Borealis refused to hand over the machines.

Borealis took out a 148 million dollar loan in early 2025 and recently signed a 12-megawatt power agreement with Landsvirkjun to double the size of its Blönduós data centre.