SIGNALInfrastructure Software·Jun 25, 2026, 10:23 AMSignal75Medium term

Borealis inks 12MW PPA with Landsvirkjun in Iceland

Source: DataCenter Dynamics

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Borealis inks 12MW PPA with Landsvirkjun in Iceland

Will support capacity expansion at Blönduós data center

Why this matters
Why now

The increasing demand for data center capacity, driven by AI and cloud adoption, necessitates securing stable and affordable power sources in environmentally conscious regions.

Why it’s important

Securing a 12MW power purchase agreement highlights the critical role of energy availability and cost in data center expansion, particularly in regions with abundant renewable energy.

What changes

This agreement ensures power for Borealis's data center expansion, demonstrating a continued focus on leveraging Iceland's geothermal and hydroelectric resources for compute infrastructure.

Winners
  • · Borealis
  • · Landsvirkjun
  • · Iceland's data center sector
  • · Cloud/AI compute providers
Losers
  • · Regions with high energy costs
  • · Data centers reliant on fossil fuels
Second-order effects
Direct

Borealis secures sustainable power for its Blönduós data center expansion, enabling increased capacity.

Second

Iceland solidifies its position as an attractive location for energy-intensive compute infrastructure due to its renewable energy profile.

Third

This could contribute to the global distribution of compute capacity seeking optimal energy conditions, potentially influencing future data sovereignty discussions.

Editorial confidence: 90 / 100 · Structural impact: 60 / 100
Original report

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