Startup to build a 'fortress for data' inside the Arctic Circle

The company is set to build a large scale data centre that can draw up to 1000 megawatts of power in a small Norwegian town of Ballangen.

Why Ballangen?

Although, It is not uncommon to find data centres in Scandinavia countries. Kolos chose Ballangen for many reasons with one being low taxation.

Other factors include the town's access to hydropower, its ability to provide a natural moat to protect the facility, and its climate.

Havard Lillebo, CEO of Kolos, explained the startup's rationale for creating its data centre in Ballangen.

He cited cheap renewable power, stable climate, its solid power grid, and access to dark fibre as factors that triggered the decision.

"In Northern Norway, we actually have Europe's cheapest power, which is also 100% renewable. Also, Ofoten and Ballangen have good access to dark fibre, which is a prerequisite for running data centres," Lillebo stated.

The region which is naturally cool will keep the data servers cool.

The project is currently supported by five mayors. And it is scheduled to be finalized with Norway’s climate and environment Minister, Vidar Helgesen later this week.

Kolos is estimated to create within 2,000 to 3,000 direct jobs and 10,000 to 15,000 support jobs in Ballangen.

Knut Einar Hanssen, the Counsel Representative emphasised on the benefits of the projects. He stated that the project will have a positive effect on the local community as well as jobs.

"We must always think about how to place the horse in front of the cart when it comes to planning. The data center could lead to many new jobs and have a great effect on the city of Ballangen and many positive changes for the local community. We must plan in advance," said Hanssen.

Should the startup go bankrupt or the project be cancelled, Ballangen has reserved rights to the property.

The startup indicated that it has raised several million through private investors. Kolos is working with a US investment bank to secure more funds.

Scandinavian Countries and Data Centres

The attraction is simple! Cheap and renewable energy, low taxation, cold climate. Major tech players have about 1-2 data centres running in this region.

Facebook has its data centre in Lulea, Sweden and has plans to build another data centre in Denmark. Apple has a data centre in Denmark and could be planning for another centre.

Google has a data centre in Finland and could be building another centre in Denmark.

Kolos will cover about 600,000m² and stand at about four storeys tall. This will displace the data centre in Langfang, China [585,000m²] to the second largest in the world.